Futures trading points to a rosy start to the morning on the ASX, with the index set to climb to a new high, bucking the trend on Wall Street.
The S&P 500 slipped 0.1% on Friday, dragged by a decline in information technology stocks, while the Dow Jones rose 0.3%, buoyed by energy shares as crude oil prices increased.
The Nasdaq index dropped 0.4% on the back of a 2.1% fall in Nvidia shares and a 1.8% dip in Costco Wholesale.
Federal government achieves surplus
The Australian government has pulled in a budget surplus for the second successive year.
Treasurer Jim Chalmers can lay claim to this win – it’s the first time a government has achieved two consecutive budget surpluses in 20 years.
The final budget position for the 2023-24 financial year shows the budget in the black by $15.8 billion – a $6.4 billion improvement.
European markets closed higher, with the continent-wide FTSEurofirst 300 adding 0.4%, led by China-exposed chemicals stocks and autos, which gained 2.6% and 2.1%, respectively.
The FTSE 100 mirrored this rise, gaining 1.1% for the week. Chinese stimulus measures bolstered sentiment across Europe.
Currencies and commodities
Global oil prices rose on Friday, with Brent crude up 0.5% to US$71.98 a barrel, though Brent and Nymex crude prices were down 3.4% and 5.2%, respectively, over the week.
Base metals performed well, with aluminium surging 7.4% and copper jumping 6.1% over the week.
Gold prices fell 1% to US$2,668.10 an ounce but gained 0.8% for the week.
Looking ahead, Australian private sector credit data will be released, while Liontown Resources (ASX:LTR) issues earnings and ResMed holds an investor day.
In China, PMIs are due, and in the US, all eyes are on Federal Reserve Chair Jerome Powell’s speech.
Market snapshot
- ASX 200 futures: +0.3% to 8,277 points
- Australian dollar: +0.1% 69.02 US cents
- S&P 500 (Friday): -0.1% to 5,738 points
- Nasdaq (Friday): -0.5% to 20,009 points
- FTSE (Friday): +0.4% at 8,321 points
- EuroStoxx (Friday): +0.7% to 523 points
- Spot gold: -0.5% to $US2,658/ounce
- Brent crude: -2.4% at $US71.90/barrel
- Iron ore (Friday): +3.6% to $US102.10/tonne
- Bitcoin: -0.2% to $US65,706
Source: ABC
What’s happening in small caps?
- Sprintex Ltd (ASX:SIX) has successfully completed hot environment testing under its A$1 million phase one evaluation contract with Mest Water.
- RemSense Technologies Ltd (ASX:REM) has been awarded its second contract under the new global services agreement with Chevron Global Services Corporation.
- Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has closed its loan facility with Glencore International AG and affiliates and executed offtake agreements for copper products.
- Volt Resources Ltd (ASX:VRC, OTC:VLTRF) says RiverFort Global Opportunities PCC Ltd has agreed to proceed with second advance of A$500,000 pursuant to the terms of an agreement made in April.
- Yandal Resources Ltd (ASX:YRL) has now implemented the last step of its board and senior management succession plan as outlined in a May announcement to the ASX.