The Australian share market is tipped to open higher today, tracking gains from Wall Street, where all the major indices finally rebounded after weeks of losses.
In the other big news of the morning, the gold price has pierced the US$3,000 per ounce threshold.
Investors assess economic data
US sharemarkets rose on Monday, ending a month-long Trump-inspired losing streak for the Nasdaq and S&P 500 indices, as investors ventured back out to buy the dip.
Headline retail sales increased marginally in February but missed market expectations.
Meanwhile, a separate report showed that factory activity in New York State recorded its steepest decline in nearly two years.
Key stock movements included Intel, which gained 6.8% following reports that incoming CEO Lip-Bu Tan is considering major changes in chip manufacturing and artificial intelligence strategies.
Quantum computing stocks such as D-Wave Quantum and Quantum Corp surged 10.2% and 40.1%, respectively, ahead of Nvidia’s annual conference, where AI-related developments are expected. Nvidia shares, however, dipped 1.8%.
Meanwhile, Robinhood shares were up 7.1% after the trading platform announced a new prediction markets hub.
Tesla continued its freefall, down another 4.8% after brokerage Mizuho lowered its price target on the stock.
By the session close, the Dow Jones had gained 353 points or 0.9%, the S&P 500 had climbed 0.6%, while the Nasdaq had added 55 points or 0.3%.
European markets rise on energy and healthcare
European stocks extended gains for a second session on Monday, driven by some achievements in the energy and healthcare sectors.
Investors trained their focus on Germany’s debt reform plans and, of course, the Russia-Ukraine conflict.
The oil and gas sector added 1.5%, as a result of higher crude prices, while healthcare stocks logged a fourth consecutive day of gains. The FTSEurofirst 300 index rose 0.8%, and London’s FTSE 100 gained 0.6%.
Currencies and commodities
There were mixed movements on the foreign exchange market against the US dollar on Monday.
The euro strengthened, rising from US$1.0869 to US$1.0928, before settling near US$1.0920 at the US close.
The Australian dollar also gained, lifting from US$0.6321 to US$0.6390, ending the session near US$0.6385.
Meanwhile, the yen weakened, falling from JPY148.40 per US dollar to JPY149.28, before recovering slightly to JPY149.10.
The moves reflected investor sentiment ahead of key US economic data releases, as well as expectations surrounding Federal Reserve policy and global trade developments.
Gold futures climbed US$5.00 or 0.2% to US$3,006.10 per ounce as investors watched trade tariff developments and the US Federal Reserve’s policy stance. Spot gold traded near US$3,001 at the US close.
Oil prices edged higher as the US reaffirmed its commitment to military action against Yemen’s Houthis, while Chinese economic data raised hopes for stronger demand. Brent crude rose US$0.49 (0.7%) to US$71.07 per barrel, and US Nymex crude added US$0.40 (0.6%) to US$67.58 per barrel.
Base metals also saw gains, with copper futures climbing 1.3% to a five-month high, buoyed by China’s latest economic stimulus measures and a weaker US dollar. Aluminium futures rose 0.3%.
Iron ore futures dipped US$0.53 (0.5%) to US$102.32 per tonne, as China’s latest property sector data heightened concerns over a fragile demand outlook.
In Australia, Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter is scheduled to speak. Several ASX-listed companies, including Credit Corp, Reece, and SEEK, will trade ex-dividend, while New Hope is set to release earnings.
In the US, data on industrial production, housing starts, building permits, and import/export prices will be released. Additionally, Nvidia CEO Jensen Huang is set to deliver a highly anticipated keynote address at the GPU Technology Conference (GTC).
Market snapshot
- ASX 200 futures: +0.7% to 7,909 points
- Australian dollar: Flat at 63.82 US cents
- Dow Jones: +0.8% to 41,841.6 points
- S&P 500: +0.6% to 5,675.1 points
- Nasdaq: +0.3% to 17,808.6 points
- FTSE: +0.6% to 8,680.2 points
- EuroStoxx: +0.8% to 5,445.5 points
- Spot gold: +0.6% to $US3,001.46/ounce
- Brent crude: +0.6% to $US71/barrel
- Iron ore: -0.2% to $US102.45/tonne
- Bitcoin: +0.2% to $US84,127
Source: The ABC