The local market is set to rise today following gains on Wall Street overnight.
However, it’s expected that a quiet day is ahead as investors await the ABS release of inflation data tomorrow that will help the RBA decide when to cut interest rates.
US markets rose ahead of earnings from a host of megacap companies and the final stretch of the November 5 US presidential election. Sentiment also improved after developments in the Middle East over the weekend did not disrupt energy supplies.
However, a drop in oil prices saw shares in major US energy companies decline as markets took out the risk premium after Israel’s retaliatory attack on Iran avoided oil facilities.
- The Dow Jones index rose by 273 points or 0.7%.
- The S&P 500 index gained 0.3%.
- The Nasdaq index added 49 points or 0.3%.
Alphabet, Meta Platforms and Apple all rose 0.9% each, ahead of their results later in the week.
The financials and utilities sectors outperformed the broader market, lifting between 0.8% and 1.1%.
Shares of Citigroup gained 3.9% with Goldman Sachs up 2.1%.
Shares of Carnival Corp (NYSE:CCL) rose 4.8% with Delta Air Lines shares up 2.3% after crude oil prices slumped. Boeing's shares dipped 2.8% after the planemaker launched a stock offering that could raise up to US$22 billion in a bid to shore up its finance amid an ongoing worker strike.
European sharemarkets closed higher on Monday, gaining ground as investors reviewed the geopolitical situation in the Middle East. Media and construction stocks added 1.4% and 2%, respectively, while oil and gas stocks fell 1.3%, tracking oil prices lower.
- The continent-wide FTSEurofirst 300 index added 0.4%.
- In London, the UK FTSE 100 index gained 0.5%, led by a 2% increase in travel and leisure shares.
Currencies
Currencies were mixed against the US dollar in European and US trade.
- The Euro rose from US$1.0781 to US$1.0826 and was near US$1.0815 at the US close.
- The Aussie dollar fell from US66.10 cents to US65.79 cents and was near US65.85 cents at the US close.
- The Japanese yen firmed from 153.74 yen per US dollar to JPY152.42 and was near JPY153.25 at the US close.
Commodities
Gold again closed in on a record high, with the front-month contract finishing up 0.1% to $US2,742.90 an ounce — the third consecutive higher close, and the second-highest finish for the contract on record.
Global oil prices tumbled 6.1% on Monday after Israel's retaliatory strike against Iran's military on Saturday bypassed oil and nuclear facilities, not disrupting energy supplies.
- The Brent crude price fell by US$4.63 or 6.1% to US$71.42 a barrel.
- The US Nymex crude price lost US$4.40 or 6.1% to US$67.38 a barrel — the biggest one-day drop in more than two years.
Base metal prices retreated on Monday as Chinese industrial profits data suggesting poor demand prospects added to disappointment with economic stimulus measures from the top consumer, weighing on sentiment.
- Copper futures slipped 0.2%.
- Aluminium futures shed 1.5%.
Iron ore futures dipped US8 cents or 0.1% to US$104.15 a tonne on Monday on concerns about top consumer China's faltering economic recovery and steel demand.
What’s happening in small caps?
- FireFly Metals Ltd (ASX:FFM) has increased resources at its Green Bay copper-gold project by 42% to 1.2 million tonnes of contained metal at 2% copper equivalent.
- Evolution Energy Minerals Ltd (ASX:EV1) has identified copper-lead-zinc mineralisation — the Chikundo VHMS prospect — at the Chilalo Graphite Project in southeast Tanzania.
- Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has initiated a strategic review of its copper projects in the Murchison Region of Western Australia, including the Cue and Meekatharra projects, to “evaluate options to maximise value for shareholders“.
- Magnetite Mines Ltd (ASX:MGT) advises that Jim McKerlie will resign as a non-executive director at the upcoming AGM due to personal commitments and other business interests.
- Piedmont Lithium (ASX:PLL, OTC:PLLTL) shipped ~31,500 dry metric tons of spodumene concentrate in Q3 2024 as its jointly-owned North American Lithium achieved new quarterly production and operational performance records.