ASX Set for Positive Start Amid Wall Street Gains

Highlights

• ASX market poised for rise with Wall Street hitting new highs.
• Key stocks like Alphabet (GOOGL), Tesla (TSLA), and TSMC (TSM) in focus.
• ASX small caps Power Minerals (PNN), Artemis Resources (ARV), and others gaining attention. 

The Australian Stock Exchange (ASX) is positioned for a strong start, with futures contracts for the ASX200 indicating a 0.4% rise. This optimism follows a positive session in the US markets, where the S&P 500 climbed 0.71% to a record high. The Dow Jones also advanced by 1%, while the Nasdaq rose 0.6%.

Cyclical stocks led the charge, reflecting optimism in sectors that benefit from economic growth. The positive sentiment follows the release of the Federal Reserve’s minutes from their September meeting, which revealed broad support for a 50 basis point rate cut aimed at stimulating the economy.

Wall Street Highlights: Alphabet and Tesla in Focus

Alphabet Inc. (GOOGL) saw a 1.5% decline after the U.S. Department of Justice signaled potential antitrust action, considering breaking up Google’s core data assets used in search and AI tools. This development could mark the largest antitrust case in recent history.

Tesla Inc. (TSLA) experienced a 1.4% drop ahead of its highly anticipated RoboTaxi event. The event, titled “We, Robot,” is expected to reveal Tesla’s new robotaxi, which analysts predict could bring in significant revenue. RBC’s Tom Narayan estimates the new business could generate around $153 billion for the company.

Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) reported impressive quarterly revenue growth of 39%, which helped lift semiconductor stocks and eased concerns about potential slowdowns in AI hardware demand.

ASX Small Caps in the Spotlight

Several ASXlisted small caps are gaining attention today:

Power Minerals (ASX:PNN): Power Minerals has completed due diligence with Heng Li Technology for their joint venture at the Pular Lithium Project. The collaboration aims to enhance lithium production in Argentina, with Heng Li committed to purchasing the lithium concentrate produced. This agreement positions Power for significant growth in the lithium market.

Artemis Resources (ASX:ARV): Artemis Resources announced highgrade gold and silver findings from recent rock chip sampling at their Titan prospect. With grades reaching 553 g/t for gold and 1,305 g/t for silver, the prospect shows considerable potential for future exploration.

Lefroy Exploration (ASX:LEX): Lefroy has expanded the nearsurface gold resources at its Mt Martin Project. The project now boasts 439,000 contained ounces of gold, reflecting a 13% increase in resources due to recent drill results.

Archer Materials (ASX:AXE): Archer is advancing in the development of tunnel magnetoresistance (TMR) sensors for industrial applications. A new partnership with MultiDimension Technology marks a significant step in Archer’s journey to commercialize its quantum technologies.

Aurumin (ASX:AUN): Aurumin has secured an agreement with Newcam Minerals to explore and potentially develop iron ore rights at its Central Sandstone Project. Newcam will invest $500,000 upfront and provide further funding for exploration and production if the project progresses.

Market Movements and Commodities

In other market news, gold prices slipped 0.5% to US$2,607.70 per ounce, while oil prices also fell, with Brent crude trading at US$76.70 per barrel. The benchmark 10year US Treasury yield rose by 5 basis points to 4.06%, and the Australian dollar weakened slightly, trading at US67.17 cents.

In the cryptocurrency space, Bitcoin dropped by nearly 3% to US$60,668, while Ethereum followed with a 2% decrease, trading at US$2,370. Iron ore remained steady at US$105.15 per tonne.

This article captures the latest developments in both the global and ASX markets, focusing on stocks and commodities likely to impact the trading day ahead.