Proactive Investors
Published Mar 13, 2024 09:54
The morning catch up: ASX to open in the green on Wall St strength
The ASX is likely to open higher this morning after a strong night on Wall Street, with the SPI 200 Futures trading 0.18% higher at 7,729.
US markets
The S&P 500 rose 1.1% to a record closing high overnight while the Dow Jones index rose 0.6% and the Nasdaq added 1.5% as traders lifted expectations for a June rate cut.
The catalyst for the market rebound was the February CPI report, which came in “as expected,” bolstering the view that inflation continues to cool and supporting bets the US Federal Reserve will cut interest rates in the coming months.
Iron ore stages slight recovery
After slumping by more than 7% on Monday to below $US110 a tonne — the first time it’s been under that level since August — iron ore futures staged a partial recovery, lifted US15 cents to US$113.15 per tonne on Tuesday.
Iron ore has lost about a quarter of its value since early January amid a lack of fresh stimulus in China, while iron ore stockpiles at Chinese ports have swelled to the highest in a year.
There were few positive signs for investors at the annual National People’s Congress in Beijing, which concluded on Monday, after a pickup in construction activity after the Lunar New Year holidays hasn’t eventuated.
European markets
European sharemarkets ended higher on Tuesday with German and French equities hitting fresh all-time highs. The auto sector led gains, up 2.3%, boosted by an 11.5% advance in Porsche (ETR:P911_p) on trader bets Volkswagen (ETR:VOWG_p) might lift its free float in the German sportscar.
Currencies
Currencies were weaker against the US dollar in European and US trade.
Commodities
Global oil prices dipped on Tuesday after the US Energy Information Administration (EIA) raised its 2024 outlook for domestic oil output growth by 260,000 barrels per day to 13.19 million barrels, versus a previously forecast rise of 170,000 bpd.
Base metal prices rose on Tuesday.
The gold futures price fell by US$22.50 or 1% to US$2,166.10 an ounce on Tuesday after a hot US inflation report dimmed prospects of the US central bank cutting interest rates soon.
Iron ore futures lifted US15 cents or 0.1% to US$113.15 a tonne on Tuesday, staging a partial recovery after slumping by the most since mid-2022 on weak China demand on Monday.
What’s on?
On the small cap front
The S&P ASX Small Ordinaries ended 0.75% higher yesterday, while the ASX 200 gained 0.11%.
You can read more about the following throughout the day.
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