AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Wall Street ended mixed, with declines in tech and health sectors overshadowing strong earnings in finance and semiconductors.
- European markets rallied, driven by luxury and technology stocks, with Richemont and TSMC leading the gains.
- Commodities showed strength; gold and base metals advanced, while oil prices eased on geopolitical developments.
The Australian share market (ASX:BHP) is poised for a positive opening today, supported by strength in commodities, a healthier Australian dollar, and gains in European equity markets. The backdrop includes mixed results from Wall Street and significant developments in global markets.
Wall Street displayed a subdued performance as fresh economic data and corporate earnings shaped sentiment. The Dow Jones Industrial Average edged down by 68 points (-0.2%), the S&P 500 declined by 0.2%, and the Nasdaq Composite fell sharply, losing 173 points (-0.9%). Major tech players like Apple dropped 4.0% following earnings announcements, while UnitedHealth experienced a 6.0% slide after missing revenue expectations. However, standout performances included Taiwan Semiconductor Manufacturing Company, which gained 3.9% on record quarterly profits, and Morgan Stanley, which rose 4.0% due to robust dealmaking revenues.
In contrast, European markets demonstrated robust growth, supported by luxury and technology sectors. The FTSEurofirst 300 index gained 1.0%, while the UK FTSE 100 advanced 1.1%. Richemont surged 16.4% after exceeding quarterly sales forecasts, propelling related stocks like LVMH (+9.2%) and Dior (+8.6%). Additionally, technology stocks rose 2.1%, buoyed by strong results from TSMC.
Bond markets in the US saw yields decline following comments from Federal Reserve Governor Christopher Waller, who hinted at potential rate cuts if economic conditions soften further. The 10-year Treasury yield dropped 4 basis points to 4.61%.
Currency markets saw notable movements, with the Australian dollar trading near 62.10 US cents at the US close. The euro strengthened against the greenback, moving from US$1.0260 to US$1.0314. The Japanese yen also gained ground, trading near JPY155.20 per US dollar.
In commodities, gold futures climbed US$33.10 (+1.2%) to US$2,750.90 an ounce, supported by falling US Treasury yields and a softer dollar. Spot gold was near US$2,714 at the US close. Base metals also rallied, with copper reaching a five-week high, up 1.2%, and aluminum advancing 1.8%. Proposed European sanctions on Russian exports and a stalled US dollar contributed to these gains.
Iron ore prices increased marginally, with futures up US29 cents (+0.3%) to US$100.49 a tonne. However, Rio Tinto (ASX:RIO) reported its lowest annual shipments in two years due to heavy rains in Western Australia during the December quarter.
Global oil prices softened as geopolitical tensions eased. Brent crude declined 0.9% to US$81.29 a barrel, and WTI fell 1.7% to US$78.68 a barrel, following a pledge by Yemen's Houthi militia to halt attacks on shipping vessels in the Red Sea.
Investors will closely watch key data releases from China, including GDP growth, retail sales, fixed asset investment, and industrial production figures. These metrics are expected to influence global and local market sentiment significantly.
The confluence of strong European markets, supportive commodity trends, and an improving Australian dollar sets a promising stage for the local market’s performance today.
