Rising prices pushed Wall St down and inflation up to a 30-year high, which has increased the likelihood of rate hikes in the US.
That news should be enough to pull back the ASX this morning, with ASX futures down 0.1% to 7,405 at 6.30am AEDT.
Today is Remembrance Day, so please take some time to reflect on those who were lost.
Here’s what we saw:
- The Aussie dollar fell from highs near US73.90 cents to lows near US73.25 cents and was near the lows in afternoon US trade.
- Global oil prices fell by as much as 3.3% on Wednesday.
- Reuters reported: "President Biden said he had asked the National Economic Council to work to reduce energy costs and the Federal Trade Commission to push back on market manipulation in the energy sector in a larger push to reverse inflation."
- The Brent crude price fell by US$2.14 or 2.5% to US$82.64 a barrel.
- The US Nymex crude price fell by US$2.81 or 3.3% to US$81.34 a barrel.
- Base metal prices generally rose on Wednesday, lifting 0.2-1.9% with nickel up the most.
- Copper fell 0.6% with tin down 0.4%.
- The gold futures price rose by US$17.50 or 1.0% to U$1,848.30 an ounce.
- Spot gold was trading near US$1,851 an ounce at the US close.
- Iron ore fell by US$2.95 or 3.2% to US$89.50 a tonne.
Australian market
With a slow start expected, let’s have a look at a few of the positives.
Nearmap expects to end the 2022 financial year with Annual Contract Value (ACV) between $150 million and $160 million on a constant currency basis, having ended the last financial year with ACV of $133.8 million.
The aerial mapping group will target 20% to 40% ACV growth in the medium to long term.
"The combination of a healthy balance sheet and strong FY21 incremental ACV growth means Nearmap remains fully funded for the foreseeable future," Nearmap told the market ahead of its annual general meeting.
Graincorp enjoyed a strong full-year profit of $139 million on the back of high demand for Australian grain, oilseeds and vegetable oils and a record east-coast crop.
It is now targeting an additional $40 million in earnings before interest, tax, depreciation and amortisation (EBITDA) by 2023/24 "by enhancing our asset utilisation and driving existing core capabilities".
Graincorp managing director and CEO Robert Spurway said, "We are also advancing several initiatives, with investments underway in our key growth areas of animal nutrition, alternative protein and AgTech."
Brewing giant Lion is set to become a leading US craft beer brewer, following the acquisition of Bell’s Brewery, which will come together with its New Belgium subsidiary.
The expanded Australia/New Zealand company will be at the top of the US craft beer market in sales volume and growth.
Its portfolio of brands will include the biggest selling IPA brand in the US, Voodoo Ranger, along with Fat Tire, Two Hearted Ale and Oberon Ale.
"In terms of quality, capability and reputation, Bell’s is a standout in the American craft brewing scene," managing director of Lion’s global craft beverages business, Matt Tapper said.
The ACCC is not standing in Lion’s way, despite Lion also acquiring local craft brewer Fermentum whose portfolio includes Stone & Wood.
Australian indices
- ASX 200 fell 0.14% to 7,423.90.
- ASX24 futures fell 0.1% to 7,403.
- S&P/ASX Small Ordinaries fell 0.92% to 3,550.60.
- All Ordinaries fell 0.24% to 7,737.40.
US markets
Prices are rising. Interest rate rises are coming.
That is the sentiment in the US.
“American consumer price inflation data for October was reported last night and showed the price of just about everything is rising. Prices were up 0.9% during October for an annual increase of 6.2%,” Joseph Palmer & Sons director Alex Moffatt says.
“While prices are rising real wages for average Americans are falling, by 1.2% year-on-year, something which will be of concern to the administration and the Fed. Raising interest rates may be the blunt instrument that deals with inflationary pressure in an economy but in doing so it squeezes some of the life out of the common man, or woman, who still need to meet the mortgage commitments, school fees and grocery bills.”
The other big news in the US is Rivian.
Rivian took part in the world’s largest IPO this year and rallied 37% overnight, giving it a market capitalisation of some US$93 billion.
Rivian is a manufacturer of electric vehicles backed by Amazon, Ford Motor Co. and T.Rowe Price.
Rivian priced its initial public offering late Tuesday at $78, well above its expected range of between $72 and $74 a share and increased the size of the offering to 153 million shares, from 135 million.
The company raised $11.9 billion.
US indices
- Dow Jones fell 0.7% to 36,079.94.
- S&P 500 fell 0.8% to 4,646.71.
- Nasdaq fell 1.7% to 15,622.71.
European markets
Things were firmer in Europe overnight.
Media gained 1.5%, while energy was up 0.8% in response to strong earnings figures.
Banks rose 0.5% in response to higher bond yields.
Technology was the downer falling 1.3%.
Luxury stocks fell 1-2.5%.
In London trade shares in Rio Tinto rose 0.1% while BHP shares rose 0.3%.
European indices
- STOXX 600 rose 0.22% to 483.76.
- German Dax rose 0.2% to 16,067.83.
- UK FTSE rose 0.9% to 7,190.30.