AU Morning Wrap: ASX 200 Rises, Interest Rate-Sensitive Technology Stocks Lead the Gains
G'day, mooers! Check out the latest news on today's stock market!
• U.S. stocks advanced as the Fed's preferred gauge met Wall Street's expectations, while consumer sentiment continued to weaken, giving policymakers more reason to step in to prevent a slowdown in the economy.
• Australia's June quarter inflation data released on Wednesday morning looms as a crucial test for the direction of local rates.
• Stocks to watch: FBU, PSQ, ABY
Wall Street Summary
U.S. stocks advanced as $NVIDIA (NVDA.US)$, $Microsoft (MSFT.US)$, $Amazon (AMZN.US)$ and $Meta Platforms (META.US)$ rebounded after the latest U.S. economic data bolstered the case for the Federal Reserve to start cutting interest rates in the next few months.The $S&P 500 Index (.SPX.US)$ rose 1.1% to close at 5459.10, while the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ gained 1.03% to 17,357.88. The $Dow Jones Industrial Average (.DJI.US)$ advanced 1.6% to 40,589.34.
Policymakers are monitoring the progress in their fight to cool inflation back to their 2% target as they prepare for next week's meeting. The Fed's preferred gauge met Wall Street's expectations, while consumer sentiment continued to weaken, giving policymakers more reason to step in to prevent a slowdown in the economy.
AU Market Watch
Volatility is expected to return to the sharemarket this week as local investors anticipate crucial inflation data that could trigger an interest rate hike by the Reserve Bank. The $S&P/ASX 200 (.XJO.AU)$ opened up 0.9%, buoyed by a Wall Street rebound after US inflation data suggested a potential Fed rate cut by September. Interest rate-sensitive technology stocks, such as $WiseTech Global Ltd (WTC.AU)$ and $Xero Ltd (XRO.AU)$, led the gains.
Last week, the ASX 200 experienced significant fluctuations, ending down 0.6% and losing 1.7% since mid-July. Australia's June quarter inflation data, released Wednesday, will be crucial for local rate directions, with higher-than-expected figures likely to push the RBA to raise rates. The tech sector's performance will also be in focus as $Amazon (AMZN.US)$, $Meta Platforms (META.US)$, $Apple (AAPL.US)$, and $Microsoft (MSFT.US)$ report earnings. Australia's profit season begins with Rio Tinto's half-year earnings on Wednesday.
Commodity
Gold prices experienced significant selling last week due to sluggish demand in China and a customs duty cut in India. COMEX gold declined by 4.50%. However, some recovery was seen on Friday following the US PCE inflation data, which increased speculation of a potential rate cut by the US Fed in September. Commodity experts anticipate a sharp rebound in gold prices post this data release.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $68,679, up by 1.53% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,287, down by 1.55% in the past 24 hours.
Stocks to Watch
$Fletcher Building Ltd (FBU.AU)$ anticipates a $NZ30 million ($26.9 million) impact on its fiscal year 2025 earnings due to operational issues with a third-party provider responsible for transporting cement from its manufacturing facility.
$Pacific Smiles Group Ltd (PSQ.AU)$ has received a revised acquisition proposal from Genesis Capital, offering $1.90 per share via a scheme of arrangement. This proposal allows Pacific Smiles shareholders the option to receive all or part of the consideration in scrip. The board and its advisers are currently evaluating the new proposal.
$Adore Beauty Group Ltd (ABY.AU)$ has appointed Sacha Laing, former CEO of General Pants and Colette by Colette Hayman, as its new CEO. Laing has also held executive leadership roles at several iconic Australian retail brands, including Country Road and David Jones.
Economic Calendar (AEST)
No major economic announcements.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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