The Australian sharemarket is tipped to edge up this morning, with futures pointing to a 7-point gain, even as Wall Street extended its losing streak overnight. A firmer gold price, ongoing strength in energy, and speculation around mining services could help underpin today’s trade.
Wall Street retreats for third day
US equities fell again on Thursday, with the S&P 500 down 0.5%, the Dow off 0.4% and the Nasdaq easing 0.5%. It marked the third consecutive decline, the longest pullback in a month.
Stronger-than-expected US data — GDP growth revised up to 3.8% and jobless claims dropping — suggested the economy remains robust, but also reinforced the view that the Federal Reserve has little urgency to cut rates. That mix pushed bond yields higher at the short end and weighed on growth names.
Tesla slid more than 4% on weaker European EV demand, while Oracle extended losses and Accenture dipped despite an earnings beat. Intel was a rare outlier, jumping 9% on speculation Apple may invest. In Europe, med-tech names led losses after the US launched new trade probes into robotics and medical equipment imports.
ASX recap: Resources kept index afloat
The ASX 200 closed 8.5 points higher yesterday at 8,773, though gains were narrowly driven by miners and energy names. Energy jumped 1.9% and materials rose 1.6%, with copper stocks enjoying one of their best sessions in months.
Most other sectors declined, led by staples (-0.8%), healthcare (-0.6%) and industrials (-0.6%). Financials were down 0.3%. Small caps underperformed, with the Small Ords falling 0.4%.
Commodities and currencies
Precious metals are back in the spotlight, with gold inching higher and silver surging to decade-long highs. The backdrop of sticky inflation and uneven equity markets is fuelling safe-haven demand.
- Gold rose 0.3% to US$3,749 an ounce, while silver broke through US$45, up 55% year-to-date.
- Copper eased 0.7% to US$9,455/t as the initial panic over Grasberg disruptions faded, though prices remain elevated.
- Oil held steady, with Brent at US$69.6/bbl and WTI at US$65.2/bbl, supported by inventory draws.
- Iron ore stayed flat at US$105.5/t, while lithium carbonate in China lifted 1.2% to US$11,402/t.
Currency and crypto markets were more subdued. The Aussie dollar was steady around US65.4c, while Bitcoin slumped below US$110k, down nearly 4% overnight.
What’s on today
It’s shaping up as a quieter Friday on the local front, with little in the way of fresh catalysts. Traders may focus on gold and mining services after overnight moves and media chatter.
- Corporate: Emeco Holdings (ASX:EHL) could be in play after reports of offshore takeover interest.
- Dividends: A heavy payout day, including Fortescue, Woolworths, GQG, Steadfast and Nine.
- Ex-dividends: SRG Global (SRG) and Veris (VRS).
- Earnings: Black Cat Syndicate (BC8), Deep Yellow (DYL) and Meeka Metals (MEK).
The bigger test for markets comes tonight, with the US core PCE price index due. As the Fed’s preferred inflation gauge, it could make or break rate-cut hopes — a hotter read would weigh on risk sentiment, while a softer print may offer some relief.