AUS
NZ
UK
CA
USA
IND
Highlights
- ASX Set to Rise: ASX expected to open higher with SPI 200 futures up 0.32%, awaiting CPI data.
- Wall Street Records: US indexes hit record highs despite weak consumer confidence, boosted by China's stimulus.
- Commodity Gains: Oil prices reached a three-week high, while copper and base metals surged on positive market sentiment.
The Australian Securities Exchange (ASX) is poised for a positive opening, with ASX SPI 200 futures trading up 0.32% or 26 points, indicating an opening level of 8,230. Attention turns to the upcoming release of Australia’s monthly Consumer Price Index (CPI) figures, scheduled for 11:30 AM AEST.
Anticipated Inflation Figures
National Australia Bank (NAB) forecasts a headline CPI of 2.7% year-on-year, a decrease from 3.5%. This drop is attributed to electricity subsidies and fuel base effects, with gradual progress expected across other categories. NAB also anticipates a trimmed mean expectation of 0.8% quarter-on-quarter, which would align the year-ended rate to fall to 3.5% from 3.9% in the previous quarter, consistent with the Reserve Bank of Australia's (RBA) projections.
Wall Street Performance
In the US, major stock indexes reached record closing highs despite weak consumer confidence data. The Dow Jones Industrial Average rose 84 points or 0.2%, while the S&P 500 gained 0.3% for its 41st record close, and the Nasdaq Composite added 100 points or 0.6%. Mining stocks surged following China’s announcement of a substantial stimulus package, benefiting copper and lithium miners. Key performers included Freeport-McMoRan Inc. (NYSE:FCX), up 7.9%, and Albemarle Corporation (NYSE:ALB), which advanced 2%.
Chinese firms listed in the US also saw gains, with Alibaba Group (NYSE:BABA) increasing by 7.9% and PDD Holdings Inc. (NASDAQ:PDD) rising 11.2%. The Philadelphia Semiconductor Index gained 1.3%, driven by a 4% increase in Nvidia Corporation (NASDAQ:NVDA) shares following news that its CEO had ceased selling shares.
European and Commodity Markets
European markets closed higher, propelled by China's central bank’s stimulus measures, with basic resources leading gains, up 4.4%—the largest increase in over 22 months. The FTSEurofirst 300 index rose 0.7%, while the UK FTSE 100 gained 0.3%.
In commodity markets, oil prices reached a three-week high, with Brent crude rising 1.7% to $75.17 a barrel and US Nymex crude increasing 1.7% to $71.56. Base metals also advanced, with copper futures climbing 3.3% to a 10-week high. Gold futures rose by $24.50 or 0.9% to $2,677 an ounce, reflecting heightened demand amid geopolitical tensions.
Small Cap Highlights
- Great Boulder Resources Ltd (ASX:GBR): Reports multiple high-grade gold intersections from drilling at the Mulga Bill deposit.
- Green Technology Metals Ltd (ASX:GT1): Begins extensional drilling at the Root Lithium Project in Canada.
- Novo Resources Corp (TSX:NVO): Defines an Exploration Target at the Belltopper Gold Project.
- Maximus Resources Ltd (ASX:MXR): Hits 19 meters at 3.21 g/t gold at the Hilditch gold deposit as development activities progress.
This market update highlights the positive sentiment surrounding the ASX, particularly ahead of the crucial inflation data release, with broader global markets also displaying strength amid supportive measures from China.
