Market Highlights: Gold Surpasses US$2,600; Uranium Stocks Surge Following Constellation-Microsoft Nuclear Agreement

The ASX is set to retreat from Friday’s record highs as concerns grow among investors regarding the Reserve Bank's potential delay in rate cuts until next year, despite actions taken by other central banks. As of 8 a.m. AEST, the SPI ASX200 futures contract indicated a decrease of 0.7%. 

In the previous week, U.S. shares surged to record levels; however, this momentum waned on Friday, with the S&P 500 closing down by 0.2%. The Dow Jones managed a modest gain of 0.1%, marking a new closing high, while the Nasdaq declined by 0.36%. 

This week promises to deliver significant economic data in Australia. Attention will turn to the Reserve Bank's meeting on Tuesday, where it is anticipated that the cash rate will remain unchanged at 4.35%. Following this, monthly Consumer Price Index (CPI) figures will be released on Wednesday, with forecasts suggesting a decrease in annual headline inflation to 2.7% for August, down from 3.5% in July. 

ANZ economists predict that the Reserve Bank will maintain its current interest rates this month, as the board weighs its options between holding steady or adjusting the cash rate. Conversely, the Commonwealth Bank anticipates a potential cut of 25 basis points before year-end, although this may be delayed until February 2025. 

In corporate news, Intel Corp saw a notable increase of 3% following reports from The Wall Street Journal indicating that Qualcomm had approached Intel regarding a possible acquisition. In contrast, Qualcomm's stock fell nearly 3%. FedEx Corp faced a significant decline of 15% after it reduced its full-year guidance and reported Q1 earnings that fell short of Wall Street's expectations.  

Meanwhile, in Frankfurt, Mercedes-Benz shares dropped 7% after the company lowered its full-year profit outlook for the second time in less than two months, citing ongoing declines in sales in China, the world’s largest automotive market. In a brighter development, Baltimore-based Constellation Energy surged 22%, achieving all-time highs following its announcement to restart a nuclear reactor at Three Mile Island in Pennsylvania and sell power to Microsoft for its data centers. 

This development marks a critical moment for the nuclear sector, with Constellation announcing a long-term power agreement with Microsoft. The company plans to invest substantially to restart a reactor that was decommissioned five years ago, aiming to have it operational by 2028, contingent on upgrades and regulatory approvals. 

In commodity markets, gold prices surged past US$2,600 per ounce for the first time, driven by expectations of further U.S. interest rate cuts and rising geopolitical tensions. The current spot price for gold stands at US$2,620.35. Oil prices have closed slightly lower but have managed to post gains for the second consecutive week, with Brent crude trading at US$74.52 per barrel. 

The benchmark 10-year U.S. Treasury yield increased by 3 basis points, reflecting a decline in bond prices, while the Australian dollar remained steady at US68.12 cents. Cryptocurrencies saw slight gains, with Bitcoin increasing by 0.65% and Ethereum by 0.12%. Iron ore prices retreated by 1%, now at US$91.55 per tonne. 

In small-cap news, five companies are noteworthy: 

1. Anson Resources (ASX:ASN): Granted 21 additional SITLA blocks for its Green River Lithium Project in Utah, expanding land holdings and enhancing upcoming exploration programs.
2. Lunnon Metals (ASX:LM8): Reported promising gold exploration results at the Lady Herial site, with multiple high-grade intercepts suggesting potential for further discoveries.
3. IperionX Limited (ASX:IPX): Secured a contract with Ford Motor Company to supply titanium metal components, anticipated to generate significant revenues.
4. Austal (ASX:ASB): Announced a substantial contract from the U.S. Navy aimed at supporting submarine production goals and enhancing infrastructure.
5. Brightstar Resources (ASX:BTR): Reported further encouraging drill results from the Jasper Hills Gold Project, indicating high-grade gold mineralization and the potential for underground mining. 

This confluence of economic data and corporate developments suggests a dynamic week ahead for investors and market participants alike.