AUS
NZ
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CA
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GER
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ITA
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RUS
CHN
UAE
Highlights
- ASX is expected to rise, despite recent Wall Street trends.
- The Australian government achieved its second consecutive budget surplus.
- Global oil prices rose, and base metals surged over the past week.
The ASX is set for a strong start today, with futures pointing to gains despite recent dips in U.S. markets. The Australian index is expected to hit a new high, defying the declines seen on Wall Street.
On Friday, the S&P 500 saw a slight decline of 0.1%, driven by a drop in technology stocks. In contrast, the Dow Jones rose by 0.3%, helped by rising energy shares as crude oil prices surged. However, the Nasdaq dipped 0.4%, with notable drops in Nvidia (NASDAQ:NVDA), which fell 2.1%, and Costco Wholesale (NASDAQ:COST), which declined by 1.8%.
Federal Government’s Budget Surplus
In a significant fiscal achievement, the Australian government recorded a budget surplus for the second year in a row. Treasurer Jim Chalmers announced a $15.8 billion surplus for the 2023-24 financial year, marking a $6.4 billion improvement. This is the first time in two decades that two consecutive budget surpluses have been achieved.
European Markets and Chinese Stimulus
European markets closed on a high note, with the FTSEurofirst 300 rising by 0.4%. Chemicals and auto stocks, especially those with exposure to China, saw notable gains of 2.6% and 2.1%, respectively. The FTSE 100 also ended the week up by 1.1%, as Chinese stimulus measures boosted investor sentiment.
Commodities and Currencies Update
Global oil prices increased, with Brent crude up 0.5% to US$71.98 a barrel. Despite this rise, Brent and Nymex crude prices were down by 3.4% and 5.2%, respectively, over the week.
Base metals experienced significant growth, with aluminium surging by 7.4% and copper jumping by 6.1% during the same period. However, gold prices saw a 1% drop, closing at US$2,668.10 an ounce, though they gained 0.8% for the week.
What to Watch This Week
Looking ahead, investors can expect updates from Liontown Resources (ASX:LTR) as they release their earnings, while ResMed (ASX:RMD) holds an investor day. On the economic front, Australian private sector credit data will be released. Globally, China's PMIs are due, and in the U.S., attention is focused on a speech by Federal Reserve Chair Jerome Powell.
