Proactive Investors
Published Feb 28, 2024 09:47
Updated Feb 28, 2024 10:00
The morning catch up: ASX to rise ahead of inflation data this morning
The Australian share market is set to open higher this morning — the ASX SPI futures were up 21 points or 0.27% at 9am AEDT.
This follows a mixed session on Wall Street overnight as US investors await key economic information later this week.
The US consumer confidence index fell from 110.9 to 106.7 in February, against expectations of a rise to 115. The Federal Reserve is due to provide an update on its preferred inflation gauge — the personal consumption expenditures (PCE) index — on Thursday.
Locally, earnings season continues today with 42 of the ASX 200 companies having reported earnings so far. Today’s releases include earnings updates from Flight Centre (ASX:FLT) and Worley.
The ABS is set to release January inflation data today at 11:30am AEDT. Expectations are for a 3.6% rise on-year versus 3.4% in December.
What happened overnight?
Here’s what we saw (source CommSec):
US markets
US sharemarkets were mixed on Tuesday ahead of US inflation and other economic data that could shed light on the possible timing of a US Federal Reserve interest rate cut.
Chevron (NYSE:CVX) and Hess fell between 1.5% and 3.1% after Exxon Mobil (NYSE:XOM) said it was considering a move that could break up the companies' US$53 billion merger and increase its share of Guyana's giant offshore oil reserves.
Viking Therapeutics (NASDAQ:VKTX) surged 121% following a weight loss drug trial success. But Amgen (NASDAQ:AMGN), which is developing a weight loss drug, dropped 2.8%, pressuring the Dow Jones.
A bullish outlook from Norwegian Cruise Line pushed its shares 19.8% higher.
Retail giant Macy's (NYSE:M) jumped 3.4% after announcing it would close around 150 of its struggling stores after reporting a revenue miss in the prior quarter. Lowe's gained 1.8% after posting an earnings beat. Zoom Video soared 8% following earnings reports that exceeded Wall Street expectations.
European markets
European sharemarkets were little changed on Tuesday as investors awaited this week's US inflation data that could shed some light on when interest rate cuts might commence this year.
Basic resources stocks rose by 1.7%, recovering from Monday's four-month low, tracking higher metal prices. Tech stocks jumped 1% to its highest level since December 2000. Media stocks fell 1.2%.
Currencies
Currencies were weaker against the US dollar in European and US trade.
Commodities
Global oil prices rose more than 1% on Tuesday as sources said OPEC+ is considering extending voluntary oil output cuts into the second quarter to provide additional support.
Base metal prices rose on Tuesday, lifted by hopes that next week's annual parliamentary meeting in China will set the path for further economic stimulus.
The gold futures price rose by US$5.20 or 0.3% to U$2,044.10 an ounce on Tuesday. Spot gold was trading near US$2,030 an ounce at the US close.
Iron ore futures slid US27 cents or 0.2% to US$125.84 a tonne, despite reports that India is considering a potential export tax on low-grade iron ore.
What’s on today?
In Australia, the monthly consumer price index (CPI) indicator is released with construction work done data.
The Reserve Bank of New Zealand (RBNZ) hands down its policy decision.
US economic growth (GDP) data is due tonight with the advance goods trade balance and wholesale inventories. Paramount Global (NASDAQ:PARA), Salesforce and Snowflake issue earnings.
On the small cap front
The S&P ASX Small Ordinaries lost 0.34% yesterday, while the ASX 200 finished 0.13% higher.
You can read more about the following throughout the day.
Read more on Proactive Investors AU
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Written By: Proactive Investors
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