Gains on Wall St overnight won’t stop the ASX from opening flat this morning.
The Nasdaq index hit an all-time high ahead of the release of Apple and Amazon's results, although Apple fell 5% in after-market trading.
ASX futures are flat, up just 0.1% to 7,406 around 6.30am AEDT.
Here’s what we saw:
- The Aussie dollar lifted from lows near US75.02 cents to highs near US75.55 cents and was near US75.40 cents at the US close.
- Global oil prices were mixed as preliminary OPEC+ figures signalled a tighter global oil market in the December quarter. World crude inventories are expected to decline by an average of 1.1 million barrels a day.
- The Brent crude price fell by US26 cents or 0.3% to US$84.32 a barrel.
- The US Nymex crude price gained US15 cents or 0.2% to US$82.81 a barrel.
- Base metal prices rebounded on Thursday, as commodities traders said prices were reacting to speculation that China's leadership is growing concerned over recent sharp declines in prices.
- Aluminium was up 2.6%.
- Copper was up 1.9%.
- The gold futures price rose by US$3.80 or 0.2% to U$1,802.60 an ounce.
- Spot gold was trading near US$1,798 an ounce at the US close.
- Iron ore slid US$6.50 or 5.4% to US$113.15 a tonne as China's steel production curbs hurt demand.
Australian markets
It is likely to be quiet on the ASX leading into the Melbourne Cup weekend. It’s not called the “race that stops a nation” for nothing.
It is expected the ASX will be flat today and that will likely carry into Monday and Tuesday, as punters put their money into horses, not stocks.
Other than horses and jockeys making big moves this weekend, Macquarie Group is in the headlines after it recorded a better-than-expected $2.04 billion interim profit.
On the strength of its performance, Macquarie is going to market with rider’s cap in hand to raise $1.5 billion in pursuit of a strong pipeline of acquisition opportunities.
Macquarie reported that its $2.04 billion profit for the six months ended September 30, was more than double the $985 million it made this time last year.
While no guidance for the 2022 financial year has been given, Macquarie chief executive Shemara Wikramanayake said the company would take a "cautious stance" on the operating environment and a conservative approach to capital management.
Macquarie will raise capital, through a placement to institutional investors, to pursue acquisition opportunities.
The company declared an interim dividend of $2.72 per share.
While it is expected to be quiet in Australia, there is a great deal going on in the US.
Australian indices
- ASX 200 fell 0.25% to 7,430.40.
- ASX24 futures fell 0.5% to at 7,380.
- S&P/ASX Small Ordinaries fell 0.81% to 3,552.40.
- All Ordinaries fell 0.24% to 7,739.70.
US markets
US indices were higher, with the NASDAQ at an all-time high.
Ford shares soared 8.7% after lifting forecasts and resuming dividends. Caterpillar was up 4.1% and Merck lifted +6.1% after posting higher profits.
On the downside was eBay which dropped 6.8% on the back of poor results.
Apple started well but lost 5% in after-market trading.
The tech giant warned of iPhone supply-chain disruptions due to a microprocessor shortage.
Sales also missed analyst expectations, despite a record 12-month profit of nearly $US100 billion (A$132.5 billion).
Apple reported $US20.6 billion profit for the quarter, up from $US12.7 billion a year earlier, however, revenues were lower than analysts’ US84.8 billion expectations, coming in at $US83.4 billion for the quarter.
Profit did meet analysts’ expectations at $1.24 a share.
The company's quarterly iPhone sales were $US38.9 billion, compared to an expected figure of $US41.5 billion.
Apple expects record revenue in the December quarter.
"We fully expect to set a new December quarter record for revenue," Apple CFO Luca Maestri told The Wall Street Journal.
"But we also expect the supply constraints will be greater… We expect most of our product categories to be constrained during the December quarter."
Facebook goes ‘Meta’
Facebook has changed its corporate name to Meta to better encompass what it does beyond social media.
The name change is for the parent company only. The apps will remain unchanged.
In Mark Zuckerberg’s own seemingly megalomaniacal way, he says he wants to build a ‘Metaverse’, which sounds all a bit Marvel to me.
All hail Captain Zuckerberg.
Barbs aside, the ‘metaverse’ is touted as an online world that brings people together to game, work and communicate in a virtual environment, often using VR headsets.
"Over time, I hope that we are seen as a metaverse company and I want to anchor our work and our identity on what we're building towards," Zuckerberg told a virtual conference.
"We're now looking at and reporting on our business as two different segments, one for our family of apps, and one for our work on future platforms.
"And as part of this, it is time for us to adopt a new company brand to encompass everything that we do, to reflect who we are and what we hope to build."
Generally speaking
American GDP data for the September quarter was released by the Commerce Department last night and showed the economy grew by 0.5% during the quarter, much less than 0.7% gain forecast by most economists.
According to Joseph Palmer & Sons director Alex Moffatt, “The outcome is going to send economists to their reference books to check whether the economy is experiencing stagflation, which is where an economy experience rising inflation with little growth.
“At the longer end of the bond market dealers pushed yields higher, the 10-year up by 4 basis points to 1.58%. The weakening growth situation in the economy will also give the Fed something to discuss next week when they meet again to ponder monetary policy settings."
US indices
- Dow Jones rose 0.68% to 35,730.48.
- S&P 500 rose 0.98% to 4,596.42.
- Nasdaq was up 1.4% to 15,448.12.
European markets
Over in Europe, the European Central Bank made it very clear that it will not be raising rates anytime soon, saying the inflationary spike is temporary.
The French/British battle also continues.
Moffatt says, “The French have not accustomed themselves to life after Brexit. In the ongoing fishing dispute with Britain, the French seized a British fishing trawler and fined another. Britain has summoned the French ambassador to discuss the matter.
“Daimler and BP are working together towards getting lorries powered by green hydrogen onto British roads by 2025. Hydrogen refuelling stations are being set up around the country in order to refuel the planned 25 lorries which will hit the roads. Compressed hydrogen is converted into electricity through fuel cells with the only waste being steam.”
In London trade shares in Rio Tinto fell by 1.3%, but BHP shares were up by 0.2%.
European indices
- STOXX 600 rose 0.24% to 475.16.
- German Dax fell 0.1% to 15,696.33.
- UK FTSE fell 0.1% to 7,249.47.