After gaining 38 points to 8,252 points yesterday, the ASX 200 is within reach of a fresh record high.
That milestone could be reached today with the ASX SPI Futures up 37 points (0.44%) at 8,284 points following a strong lead from US markets overnight propelled by soft-landing momentum, the reopening of the corporate buyback window and better-than-expected bank earnings.
The S&P 500 added 0.77% to close at its 46th record close of the year: the Dow Jones gained 0.47% for its first close above 43,000 points, while the Nasdaq lifted 0.87% to within 1% of its July 11 high.
Tech stocks and Utilities were the standouts, while the Energy sector retreated slightly as oil prices nosedived on OPEC demand cuts.
US investors are gearing up for a week packed with corporate earnings and crucial US economic data that will likely test stretched stock market valuations.
- The Philadelphia SE Semiconductor index jumped 1.8% to a more than two-month high, led by Nvidia's 2.4% rise.
- Among other growth stocks, Microsoft and Apple gained 0.7% and 1.7%, respectively.
- Shares of Vistra jumped 5.6% after BNP Paribas Exane started coverage on the power-producing company.
- McDonald's and UnitedHealth led the Dow higher, up between 1.2% and 1.6%.
- Gains, however, were kept in check by a 2% drop in Caterpillar, following a downgrade from Morgan Stanley (NYSE:MS), and a 1.3% fall in Boeing after the plane maker flagged a larger-than-expected third-quarter loss on Friday.
- Goldman Sachs and Citigroup rose between 0.4% and 1.3% ahead of earnings results.
China
Chinese stocks rebounded on Monday from last week's big selloff as Beijing reinforces its commitment to shoring up the economy.
Data revealed that China's export growth slowed sharply in September at the slowest pace in five months, while imports also unexpectedly decelerated, heavily undershooting forecasts and suggesting manufacturers are dropping prices to move inventory ahead of tariffs from several trade partners.
Earlier this month, the EU imposed additional duties on electric vehicles built in China of up to 45%, joining the US and Canada in tightening trade measures against China.
European markets
European markets ended a choppy session at a two-week high ahead of corporate earnings and a European Central Bank (ECB) policy decision later this week, while some caution prevailed after China's weekend stimulus promises underwhelmed.
Technology, defence and utilities stocks were up over 1.2% each.
LVMH, Hermes, Kering and other French luxury stocks exposed to China fell between 0.4% and 3.8%.
France's main index underperformed other major markets, lifting just 0.3%. This comes after credit ratings agency Fitch revised the country's outlook to "negative" from "stable" on Friday.
- The continent-wide FTSEurofirst 300 index gained 0.6%.
- In London, the UK FTSE 100 index rose by 0.5%.
Commodities
Global oil prices slipped by more than 2% on Monday as OPEC lowered its global oil demand growth forecast. OPEC cut its oil demand growth forecast for this year by 106,000 barrels per day, for a third straight month-on-month cut.
- The Brent crude price fell by US$1.58 or 2% to US$77.46 a barrel.
- The US Nymex crude price lost US$1.73 or 2.3% to US$73.83 a barrel.
- WTI oil lost 4.79% to US$71.94 a barrel.
Base metal prices dipped on Monday due to a lack of detail on China's stimulus plans, soft credit and export data, deflationary pressures in the top consumer and a firmer US dollar.
- Copper futures slid 2%.
- Aluminium futures shed 1.4%.
The gold futures price fell US$10.70 or 0.4% to US$2,665.60 an ounce on Monday as the US dollar rallied to a nine-week high, capping upside momentum.
- Spot gold was trading near US$2,653 an ounce at the US close.
Iron ore futures rose US6 cents or 0.1% to US$106.50 a tonne as renewed prospects of further fiscal stimulus from China following a key government briefing lifted sentiment in the top consumer's steel market.
Currencies
Currencies were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.0936 to US$1.0897 and was near US$1.0905 at the US close.
- The Aussie dollar slid from US67.43 cents to US67.02 cents and was near US67.20 cents at the US close.
- The Japanese yen eased from 149.17 yen per US dollar to JPY149.98 and was near JPY149.75 at the US close.
What’s happening in small caps?
- International Graphite Ltd (ASX:IG6) has delivered “outstanding” results from bench-scale micronising, spheroidising and purification test work on graphite concentrates generated from its Springdale Graphite Project in Western Australia.
- Legend Mining Ltd (ASX:LEG) has identified large, high-conductance zones in an HPFLTEM survey at Magnus prospect within the Rockford Project, Fraser Range, Western Australia.
- AuMEGA Metals Ltd (formerly Matador Mining) reports that high-resolution magnetics completed over the Bunker Hill Project in Canada has revealed significant geological structures, supporting the belief the mineralisation is associated with intrusive-style mineralisation.
- Antipa Minerals Ltd (ASX:AZY) is set to commence a 70-hole reverse circulation drilling program this week at its 100%-owned Minyari Dome Gold-Copper Project in the Paterson Province of Western Australia, while an updated Minyari Dome scoping study is anticipated next week.
- Great Boulder Resources Ltd (ASX:GBR) reports that deep drilling has confirmed gold at a depth of 500 metres at the Mulga Bill prospect within the Side Well Gold Project in Western Australia.