ASX 200 futures were down 38 points (-0.42%) at 8:30 am AEST, after the Australian sharemarket rebounded yesterday from a three-day slide with materials strength pushing the index towards a record close as copper hit a 14-month peak.
The S&P/ASX 200 rose 0.3% (22.2 points) to 8,969.8, nearing the 9,019.10 record set on August 21. Six of the eleven sectors advanced as major United States indices gained overnight, led by large-cap technology. The All Ordinaries also added 0.3%. Materials outperformed, offsetting weakness in banks and technology.
Lynas Rare Earths jumped 5.3% to a fourteen-year high of A$20.59 after striking a partnership with Noveon Magnetics to supply rare earth magnets for the United States Department of Defense and commercial customers; shares have trebled this year. Brazilian Rare Earths surged 8.6% to a record A$4.93 on agreements with France’s Carester for heavy rare earth feedstocks and engineering services at a Brazilian refinery; shares have doubled this year.
Wall Street eases from records as investors reassess valuations
United States sharemarkets retreated from record highs on Thursday as investors, lacking fresh catalysts, questioned elevated valuations after the recent bull run.
The Standard & Poor’s 500 (S&P 500) fell 0.3%, the Dow Jones Industrial Average lost 0.5% (down 243 points) and the Nasdaq Composite eased 0.1% (down 19 points).
Materials led declines on the S&P 500, down 1.5%, with gold weakness weighing on miners; Newmont slipped 3.6%. The industrials sector fell 1.4% as Boeing dropped 4.1% and Honeywell shed 2.7%. Technology names were softer, with Apple, Microsoft and AppLovin down between 0.5% and 4.7%.
Tesla eased 0.7% after the United States National Highway Traffic Safety Administration (NHTSA) opened an investigation into 2.88 million vehicles equipped with the Full Self-Driving system. Homebuilders PulteGroup and D.R. Horton fell 4.9% and 4.6%, respectively.
Selective earnings and broker moves provided offsets. Delta Air Lines rose 4.3% after issuing an upbeat current-quarter outlook alongside stronger-than-expected third-quarter results. PepsiCo advanced 4.2% after beating Wall Street revenue and profit forecasts. Lithium producer Albemarle gained 5.3% after TD Cowen raised its price target and as China tightened export controls on rare earths.
Europe lower as Ferrari tumbles; HSBC slides on Hang Seng buyout
European equities fell on Thursday as steep losses in Ferrari and ongoing political uncertainty in France weighed on sentiment.
Ferrari slumped 15.4% — its biggest single-day fall on record — closing at its lowest since April after long-term financial targets underwhelmed investors and overshadowed the luxury carmaker’s electric vehicle debut. HSBC dropped 5.4% after the British lender said it plans to buy out minority shareholders in its Hang Seng Bank subsidiary in a deal worth around United States dollar (US$) 13.6 billion.
Across the region, the continent-wide FTSEurofirst 300 index slipped 0.5%. In London, the United Kingdom (UK) FTSE 100 index shed 0.4%.
Currencies
The United States dollar firmed.
- The euro fell from US$1.1647 to US$1.1546 (near US$1.1565 at the close).
- The Australian dollar eased from US$0.6608 to US$0.6539 (near US$0.6550).
- The Japanese yen strengthened from ¥153.19 to ¥152.33 per United States dollar (near ¥153.05).
Commodities
Oil declined after the Israel–Hamas ceasefire.
- Brent down 1.6% to US$65.22 per barrel.
- West Texas Intermediate down 1.7% to US$61.51.
Base metals rose, with copper futures up 0.6% on supply disruptions and aluminium up 1.7% to a three-year high.
- Gold futures fell 2.4% to US$3,972.60 per ounce.
- Iron ore added 0.5% to US$104.86 per tonne.
Looking ahead: Reserve Bank of Australia testimony and the monthly business turnover indicator in Australia; University of Michigan consumer sentiment in the United States.