ASX Futures are pointing to a 0.2% or 16-point fall in early trading, following both US and European markets down after a night of losses.
Investors are pulling back partially due to inflationary fears centred on the US election’s outcome but bond yields are also rising as markets price in a gradual interest rate-cutting schedule from the US Fed.
A third day of gains for bonds applied pressured to megacap stocks, in turn exacerbating weakness in some of the biggest stocks.
US and European markets
McDonald's took a 5.1% hit last night after it was revealed a recent E.coli outbreak that has already killed one person, which is linked to the fast food chain’s quarter-pounder burgers.
Coca-Cola also lost out, shedding 2.1% after raising its revenue expectations without in turn lifting its annual growth forecast.
The Magnificent 7 dragged Tech stocks lower, falling due to exposure to bond yields. Amazon shed 2.63%, Alphabet 1.40%, Tesla 1.98%, Nvidia 2.81%, Apple 2.16% and Meta 3.15%.
Microsoft escaped with just a 0.68% dip in comparison.
Chipmaker Qualcomm shed 3.8% after Arm Holdings cancelled an intellectual property licence allowing the company to use Arm’s technology to design chips.
Green energy stock Enphase Energy fell 14.9% on a weaker-than-expected earnings report.
The Dow shed 410 points or 1%, having lost as much as 631 points during the session, the S&P500 fell 0.9% and the Nasdaq 1.6% or 296 points.
In Europe, most sectors and major markets lost progress overnight. Basic resources shed 1.2%, as Sweden’s Boliden was downgraded by UBS from “neutral” to a “sell” and shed 2.3%.
The FTSE300 lost 0.3% while the UK FTSE100 fell 0.6%.
Currencies and commodities
The US dollar gained in overnight trading.
The Euro fell from US$1.0806 to near US$1.0785, the Aussie from US66.79 to near US66.30 cents and the Japanese yen weakened from JPY152.03 to close near JPY152.65.
Oil prices continued their fall yesterday, dropping 1.4% as crude inventories rose by 5.5 million barrels, far surpassing analyst expectations of a mere 270,000-barrel lift.
Brent fell by US$1.08 to US$74.96 a barrel and US Nymex by US97 cents to US$70.77 a barrel.
Base metal prices were mixed. Copper futures dropped 1% due to a stronger US dollar, while aluminium futures rose 1.5% after reports of alumina shortages led to systematic buying.
Iron ore futures dipped by US32 cents to US$104.62 a tonne, affected by a weaker global steel outlook.
Gold futures fell by US$30.40 to US$2,729.40 per ounce due to a stronger dollar and rising US Treasury yields, with spot gold trading near US$2,715 an ounce.
On the small cap front
The ASX Small Ordinaries fell just 0.02% yesterday, as the ASX lifted 0.12%.
You can read about the following and more throughout the day on our website.
- Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) has delivered a raft of drilling results across its portfolio, having reached the $7 million minimum spend target with joint venture partner De Grey Mining and defined an exploration target at the Belltopper Project.
- Antipa Minerals Ltd (ASX:AZY) has produced an updated scoping study for the Minyari Dome Gold Project, involving an initial combined open pit and underground mine schedule of 30.2 million tonnes at 1.5 g/t gold for 1.5 million ounces of gold.
- Lithium Universe Ltd (ASX:LU7, OTC:LUVSF) is advancing a definitive feasibility study for the Bécancour Lithium Refinery, anticipated to be complete next quarter after finalising 80% of a supplier pricing program.
- AuKing Mining Ltd (ASX:AKN) has completed the acquisition of the Grand Codroy Uranium Project in Newfoundland, Canada, where historical rock chips have produced grades up to 2.2% uranium (22,000 parts per million) and 2% copper.