Proactive Investors
Published Dec 06, 2023 09:38
Updated Dec 06, 2023 10:00
The morning catch up: ASX set to rise; US tech logs strong session
While overseas markets were mixed overnight, the ASX is expected to open higher this morning. The ASX 200 futures are up 31 points, or 0.4%.
The ASX 200’s expected higher open this morning follows a 0.9% fall on the local market on Tuesday and a slump in Asian markets.
The Dow Jones and S&P 500 closed lower overnight but the tech-heavy Nasdaq index finished higher on strength in tech majors, including Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA).
Overnight, Bitcoin gained as much as 4.5% to about US$43,945, adding to a surge over Sunday and Monday that pushed it above $US40,000 for the first time in almost two years. Crypto-related stocks — Coinbase (NASDAQ:COIN), MicroStrategy and Marathon Digital (NASDAQ:MARA) — each rose for a third day with all up by more than 300% this year.
What happened overnight?
Here’s what we saw (source Commsec):
US markets
US sharemarkets were mixed on Tuesday as investors assessed a fresh batch of US economic data, including a jobs report, to gauge the probability of rate cuts by the US Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses.
Nvidia and Amazon.com (NASDAQ:AMZN) rose by up to 2.3% as US Treasury yields fell, while Tesla lifted 1.3% after four straight days of losses.
Apple gained 2.1% after SensorTower data showed App store revenue jumped 11% quarter-to-date for the fiscal first quarter of 2024.
Procter & Gamble (NYSE:PG) slid 3.5% after the household products company said it would record restructuring and impairment charges totalling US$2 billion to US$2.5 billion after taxes.
KeyCorp (NYSE:NYSE:KEY) shed 3.7% after the lender said it sees fourth-quarter non-interest income down 5%-8%, compared with the third quarter.
US government bond yields tumbled after a report showed that US job openings fell sharply in October.
European markets
European sharemarkets were choppy on Tuesday.
Rate-sensitive real estate stocks led sectoral gains, up 1.7%, after European Central Bank board member Isabel Schnabel said further interest hikes were "rather unlikely."
China-exposed HSBC and Prudential (LON:PRU) fell by up to 1.3% following Moody's outlook cut on China's credit ratings.
HCOB's euro zone services purchasing managers' index (PMI) rose from 47.8 to 48.7 in November (survey: 48.2).
Commodities
Global oil prices fell to a near five-month low on Tuesday, as a stronger US dollar and demand concerns offset supply worries after Russia said OPEC+ was ready to deepen output cuts in the first quarter of next year. Saudi Arabia lowered its official crude selling prices to Asia for next month, a sign of weakness in markets.
Base metal prices fell on concerns about China's economic outlook.
The gold futures price fell by US$5.90 or 0.3% to US$2,036.30 an ounce. Spot gold was trading near US$2,019 an ounce at the US close.
Iron ore futures added US31 cents or 0.2% to US$130.77 a tonne. Brazilian miner Vale said iron ore production this year was set to reach about 315 million tonnes, in line with its forecasts and up 2.3% from 2022
Currencies
Currencies were weaker against the US dollar in European and US trade.
Looking ahead
Economic growth or GDP data is released today with the quarterly national accounts.
On the small cap front
The S&P ASX Small Ordinaries closed 1.55% lower yesterday, while the ASX 200 lost 0.89%.
You can read more about the following throughout the day.
Read more on Proactive Investors AU
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