The Australian sharemarket is poised to retreat at the open, with futures indicating a 13-point or 0.2% decline for the S&P/ASX 200.
The expected pullback would extend the index’s 5.3% slide from its October record, leaving it up 5.8% year-to-date. This comes despite continued strength on Wall Street.
United States: Fed cut hopes keep Wall Street near record territory
US markets ended the week with modest gains on Friday as economic data reinforced expectations that the Federal Reserve could cut interest rates in the coming week.
Communication services led the S&P 500 higher, closing at a record after a 1.0% rise. Warner Bros. Discovery jumped 6.3% after Netflix agreed to purchase the company in a US$72 billion deal, though Netflix slipped 2.9% and Paramount Skydance tumbled 9.8%. Ulta Beauty surged 12.7% on upgraded guidance.
At the close, the Dow added 104 points (0.2%), the S&P 500 rose 0.2% and the Nasdaq gained 0.3%. For the week, the Dow rose 0.5%, the S&P 500 advanced 0.3% and the Nasdaq lifted 0.9%.
Europe: Growth beats forecasts but equities drift as energy weighs
European sharemarkets finished lower on Friday, weighed down by a 1.0% decline in oil and gas stocks.
Shares in LNG technology firm GTT slipped 2.7% after Goldman Sachs flagged weaker-than-expected near-term earnings. Eurozone GDP expanded 0.3% in the September quarter, ahead of forecasts.
- The FTSEurofirst 300 ended marginally lower but gained 0.5% for the week.
- In London, the FTSE 100 fell 0.5% on Friday and declined 0.6% across the week.
Currencies: Aussie edges higher as euro softens and yen slides
Major currencies were mixed against the US dollar.
- The euro eased from US$1.1671 to US$1.1628.
- The Aussie dollar strengthened from US66.16¢ to US66.48¢, settling near US66.35¢ at the US close.
- The yen weakened, moving from ¥154.35 per US dollar to around ¥155.35.
Commodities: Oil, copper and silver gain, iron ore dips on China demand concerns
Oil prices edged higher on expectations of a Fed rate cut that may bolster economic activity.
- Brent crude gained US49¢ (0.8%) to US$63.75,.
- Nymex rose US41¢ (0.7%) to US$60.08. For the week, Brent added 0.9% and Nymex climbed 2.6%.
Base metals were mixed.
- Copper futures rose 1.7%, nearing record highs after a Citi forecast upgrade, while aluminium fell 0.6%. Weekly, copper gained 3.8% and aluminium rose 1.9%.
- Gold futures were unchanged at US$4,243 an ounce, with spot gold near US$4,197, down 0.3% for the week.
- Silver surged 3.9% intraday to a record US$59.33 an ounce, finishing the week up 4.0%.
- Iron ore slipped US64¢ (0.6%) to US$107.24 a tonne on soft Chinese demand, though the contract ended the week 2.3% higher.