The ASX 200 is poised to open higher today after Wall Street reversed its first back-to-back decline in six weeks.
Futures point to a 0.2% lift to 8,264-points when trade kicks off this morning. The Aussie dollar was looking buoyant overnight too, gaining 0.3% to 66.81 US cents.
Treasury yields surge in US
US stocks rebounded overnight as Treasury yields surged to their highest levels since July, influenced by persistent inflation data and expectations of a 'no-landing' scenario for the US economy.
The Dow Jones Industrial Average rose slightly, up 0.1% to 42,977 points, while the broader S&P 500 gained 0.03% to 5,855 points.
The Nasdaq Composite, driven by the tech sector, lifted 0.5% to 18,582 points. Despite the broader decline, US stocks managed to finish off their worst levels of the day.
Bond yields continued to rise, with the US 10-year yield gaining 18 basis points over the last three sessions, driven by stronger-than-expected September inflation data and growing confidence in a soft or no-landing scenario.
This comes ahead of a busy week for earnings, with 112 companies from the S&P 500 set to report their third-quarter results.
China's recent interest rate cuts have so far failed to significantly boost economic optimism – iron ore has suffered as a result, down 1.1% to $US100.70 per tonne.
Meanwhile, gold surged 1% to hit a new record at US$2,747 per ounce, reflecting geopolitical tensions and central bank rate cuts.
Brent crude rose 2% to US$75.77 per barrel and iron ore dropped 1.1% to US$100.70 per tonne.
Market outlook
- Australian dollar - up 0.3% to 66.81 US cents.
- S&P 500 - -0.05% to 5,851 points.
- Nasdaq - +0.2% to 18,573 points.
- FTSE - -0.1% to 8,306 points.
- EuroStoxx - -0.04% to 4,939 points.
- Spot gold - +1% to $US2,747/ounce.
- Brent crude - +2% to $US75.77/barrel.
- Iron ore - -1.1% to $US100.70/tonne.
- Bitcoin - -0.1% to $US26,799.
Source: ABC
What’s happening in small caps?
- Sipa Resources Ltd (ASX:SRI) says it is about to embark on a period of significant exploration activity with drill programs scheduled across two of its key projects in WA in coming weeks.
- Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) has fielded further high-grade thick intersections from the final six holes of a 21-hole reverse circulation (RC) drilling program at its flagship Estelle Gold Project in the Tintina Gold Belt in Alaska.
- Astral Resources NL (ASX:AAR) has reported assay results for the first 20 holes of an infill and extensional RC drill program at the Kamperman Prospect, part of the 100%-owned Feysville Gold Project in WA.
- Strickland Metals Ltd (ASX:STK) has delivered an update on exploration activities at the Horse Well Gold Camp, part of the company’s 100%-owned Yandal Gold Project in Western Australia.
- Torque Metals Ltd (ASX:TOR) has received partial results from its RC drill campaign and results from two final diamond holes at the Paris Gold Project in the West Australian Goldfields.