AUS
NZ
UK
CA
USA
IND
Highlights:
- ASX 200 Futures indicate a cautious start with a focus on upcoming inflation data from the ABS.
- Global markets faced declines, with US indices reversing gains and European markets showing mixed performances.
- Commodities saw varied movements, with gains in oil and metals, while iron ore prices declined.
The Australian share market appears set for a steady start as ASX 200 Futures dipped 0.1%, or 10 points, to 8,259. Investors are awaiting the release of November inflation data from the Australian Bureau of Statistics (ABS) at 11:30 am AEDT. This report is expected to show a year-on-year inflation rate of 2%, down from October’s 2.1%. However, a slight month-on-month uptick may occur due to higher fuel and food prices. The quarterly CPI figures, due later in January, are anticipated to have a more significant influence on the Reserve Bank of Australia's (RBA) policy decisions.
Global Market Movements
United States: US markets declined after stronger-than-expected economic data suggested that the Federal Reserve may delay further interest rate reductions. The Dow Jones Industrial Average dropped 0.4%, the S&P 500 fell 1.1%, and the Nasdaq Composite plunged 1.9%. Shares of Nvidia Corporation slid 6.2% following its release of new Blackwell architecture chips, while Tesla, Meta Platforms, and Amazon also posted notable losses. On the other hand, Moderna surged 11.7% on plans for a bird flu vaccine, and Micron Technology gained 2.7%, buoyed by its association with Nvidia's next-gen chips.
US Treasury yields climbed as job openings reached a six-month high in November, signalling continued resilience in the labour market.
Europe: European indices saw mixed results. The FTSEurofirst 300 rose 0.3%, driven by gains in the energy sector, including a 7.4% jump in Norwegian oil tanker group Frontline. Meanwhile, the UK FTSE 100 slipped 0.1%, and the real estate sector across Europe faced a 0.7% decline. Eurozone inflation edged higher to 2.4% in December, matching expectations and raising questions about monetary policy adjustments.
Currency and Commodity Markets
The US dollar strengthened against major currencies. The Euro weakened to US$1.0345, the Australian dollar fell to US$62.30 cents, and the Japanese yen slipped to 157.90 yen per US dollar.
In commodities, crude oil prices climbed as concerns over sanctions on Russia and Iran combined with expectations of increased Chinese demand. Brent crude rose 1% to US$77.05 per barrel, and US Nymex crude gained 0.9% to US$74.25 per barrel. Base metals followed suit, with copper and aluminium rising 0.8% and 0.9%, respectively, supported by declining inventories. Gold prices saw modest gains, trading at US$2,665.40 an ounce before retreating slightly as the US dollar and Treasury yields strengthened. However, iron ore dropped to a seven-week low of US$97.84 per tonne amid growing inventories and reduced stimulus hopes in China.
Local Economic Events
Australia’s economic calendar features the November Consumer Price Index (CPI) and job vacancies data. These indicators will provide insights into inflation trends and labour market conditions ahead of the RBA’s upcoming policy meeting. In the US, attention will shift to the Federal Reserve's December meeting minutes, the ADP employment report, and data on jobless claims and consumer credit.
Updates in Small-Cap Stocks
- Orthocell Ltd (ASX:OCC): Continued robust sales of Striate+™ and Remplir™ medical devices drove record revenue for the December quarter, marking three consecutive quarters of growth.
- Artemis Resources Ltd (ASX:ARV): Announced the appointment of Julian Hanna as managing director. His strategic contributions in exploration are expected to shape the company’s future initiatives.
- Titan Minerals Ltd (ASX:TTM): Shared progress on its Dynasty Gold Project in Ecuador, where a 10,000-meter diamond drilling program and exploration activities in new areas are underway. The project targets significant gold and silver resources.
Outlook
The ASX is set to monitor domestic inflation figures and global cues closely. Broader market sentiment remains influenced by monetary policy expectations, commodity price trends, and corporate updates.
