AUS
NZ
UK
CA
USA
IND
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Summary Points
- US markets closed mixed as investors weighed Fed rate cut expectations and AI demand signals.
- Oil prices dropped over 2% due to easing supply concerns and weak demand forecasts.
- Australian small caps, including QMines Ltd and Brookside Energy Ltd, announced key project updates.
The ASX is poised to open higher today, with ASX SPI 200 Futures up by 17 points or 0.2%, indicating a positive start. Meanwhile, US markets showed mixed results overnight as investors evaluated the Federal Reserve's potential interest rate cuts and awaited earnings from Micron Technology (NASDAQ:MU) for insights into artificial intelligence (AI) demand.
The Dow Jones index ended a four-day winning streak, falling by 293 points or 0.7%, while the S&P 500 dipped 0.2%. However, the tech-heavy Nasdaq index managed a modest rise of 8 points or 0.04%.
Market participants are increasingly pricing in the likelihood of a 0.5% interest rate cut by the Federal Reserve in November. Historically, the central bank has typically adjusted rates by 0.25% increments, so this larger potential cut is drawing significant attention.
Energy Sector and Stock Movements
Energy stocks in the US experienced declines, with Chevron (NYSE:CVX) down 2.4% as crude oil prices fell by more than 2%. Oil concerns were somewhat alleviated as worries over supply disruptions in Libya subsided, pushing global oil prices down. Brent crude prices fell by 2.3%, closing at US$73.46 per barrel, while US Nymex crude prices dropped by 2.6% to US$69.69 per barrel.
Other notable stock movements included pharmaceutical giant Amgen (NASDAQ:AMGN), which slumped by 5.5% after delivering pipeline updates that disappointed investors. Apple (NASDAQ:AAPL) dipped slightly by 0.4%, as new data from China showed a decline in foreign smartphone sales, including iPhones.
In the automotive sector, Ford Motor (NYSE:F) and General Motors (NYSE:GM) saw declines of 4.1% and 4.9%, respectively. This followed a downward revision in outlook for both automakers.
European Markets and Currency Shifts
European markets ended the day slightly lower, with the continent-wide FTSEurofirst 300 index dipping by 0.1%. The UK FTSE 100 index also slipped by 0.2%, while Sweden's benchmark index rose 0.7% following an expected interest rate cut from the Swedish central bank.
On the currency front, the US dollar strengthened against other major currencies. The Euro fell from US$1.1212 to US$1.1121, and the Australian dollar dipped from 68.85 US cents to 68.20 US cents by the end of US trade.
Commodities and Small Caps
In commodities, gold prices climbed slightly, with gold futures rising 0.3% to US$2,684.70 per ounce. Iron ore futures also saw a minor increase of 0.4%, closing at US$92.25 per tonne as China's latest stimulus measures improved market sentiment.
Among small-cap stocks, QMines Ltd (ASX:QML) announced positive initial drilling results from its Develin Creek project in Queensland, while Premier1 Lithium Ltd (ASX:PLC) highlighted gold and copper opportunities within its Western Australian portfolio. Additionally, Brookside Energy Ltd (ASX:BRK) commenced oil and gas production from its multi-well Flames-Maroons Development Plan, marking a significant milestone for the company. Pantoro Ltd (ASX:PNR) provided updates on its mineral resource and ore reserve statements for its Norseman and Halls Creek Projects.
These developments highlight the ongoing growth potential in the Australian small-cap sector.
