Proactive Investors
Published Mar 27, 2024 09:38
Updated Mar 27, 2024 10:00
The morning catch up: Market to trade lower ahead of ABS inflation data
Modest falls on Wall street overnight are set to lead the ASX lower this morning with the SPI 200 Futures down 20 points (0.26%) at 7,819.
The highlight of the day ahead is the ABS release of February consumer price index (CPI) data at 11.30am AEDT.
CBA economists expect an acceleration of inflation to 3.8% in the 12 months to February — up from 3.4% in the 12 months to January — due to higher petrol prices, strong growth in housing costs and less retail discounting. National Australia Bank economists forecast today's CPI to head back up to 3.6%.
What happened overnight?
US markets
US sharemarkets fell on Tuesday, giving up modest gains late in the session, as investors awaited US economic data in a holiday-shortened week to gauge the US Federal Reserve's policy path.
The Dow Jones index fell by 31 points or 0.1%, the S&P 500 index dipped 0.3% and the Nasdaq index shed 69 points or 0.4%
US government bond yields were little changed on Tuesday following the release of mixed economic data. US consumer confidence held steady, durable goods orders climbed but home prices climbed less than expected. Traders awaited key US inflation data later this week to gauge when the US central bank may begin cutting interest rates.
European markets
European sharemarkets ended higher on Tuesday, with retail stocks up 1.6% while mining stocks fell 0.5%.
In Germany, the GfK consumer confidence index rose from -28.8 in March to -27.4 in April (survey: -28).
Currencies
Currencies were weaker against the US dollar in European and US trade.
Commodities
Global oil prices settled lower Tuesday as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks.
Base metal prices fell on Tuesday.
On Tuesday, the gold futures price rose by US80 cents or less than 0.1% to US$2,177.20 an ounce. Spot gold was trading near US$2,177 an ounce at the US close.
Iron ore futures dipped US39 cents or 0.4% to US$110.28 a tonne on Tuesday as downstream steel consumption in top consumer China disappointed the market.
What’s on?
In Australia, the monthly consumer price index (CPI) indicator is released with engineering construction activity data. Shares of around a dozen ASX-listed REITs trade ex-dividend, alongside IPD Group, Kelly Partners, Myer and Reece.
Chinese industrial profits are due. In the US, mortgage applications data is scheduled.
On the small cap front
The S&P ASX Small Ordinaries ended 0.07% higher yesterday, while the ASX 200 lost 0.41%.
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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