AU Morning Wrap: ASX Drops to Three-Week Lows Ahead of CPI; IAG, Fortescue Slip
G'day, mooers! Check out the latest news on today's stock market!
• Nasdaq hit 17k
• ASX drops to three-week lows ahead of CPI; IAG, Fortescue slip
• Stocks to watch: IAG, Fonterra, Fisher & Paykel
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Wall Street Summary
The $Nasdaq Composite Index (.IXIC.US)$ broke records Tuesday, jumping over 17k for the first time before pulling back following a three-day break for Memorial Day. The index hit an all-time closing high of 17,019. Still, by the numbers, about 2,000 more equities were declining than climbing.
Just after the close at 4 PM EST, the $S&P 500 Index (.SPX.US)$ traded up 0.03%, the $Dow Jones Industrial Average (.DJI.US)$ fell about 0.655%, and the $Nasdaq Composite Index (.IXIC.US)$ closed up 0.59%.
The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ climbed to 4.97%, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ 4.54%.
AU Market Watch
Australian shares dropped to a three-week low shortly after opening. Investors are awaiting local inflation data for possible clues on the direction of interest rates. The $S&P/ASX 200 (.XJO.AU)$ slumped 0.8%, with 10 out of 11 sectors in the red, led by losses in consumer staples and property. Energy was the only sector advancing.
Mining giants weakened after iron ore futures fell 1.2% to $US117.90 a tonne in Singapore overnight. The big banks also faltered, and insurance giant $Insurance Australia Group Ltd (IAG.AU)$ slumped 1.7% after coping a fresh class-action lawsuit by Slater and Gordon over loyalty discounts on home insurance policies.
However, IT services provider $Data3 Ltd (DTL.AU)$ leapt 3.6% after Morgan Stanley upgraded the stock to "overweight," citing compelling value and AI tailwinds.
The market remains cautious as it awaits local inflation data, which could have implications for interest rates and broader economic trends. The April monthly CPI indicator is expected to show a slight dip to 3.4% year-over-year from 3.5% in May.
ASX 200 futures are currently trading at 7,728, down 19 points, indicating a 0.25% decrease.
Commodity
Spot gold rose slightly by 0.3% to $US2358.61/oz at 3:49 pm in New York
Brent crude gained by 1.7% to $US84.49 a barrel
Iron ore fell by 1.2% to $US117.90 a tonne.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $68,318, down 1.53% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,840, down 1.36% in the past 24 hours.
Stocks to Watch
Insurance giant $Insurance Australia Group Ltd (IAG.AU)$ is facing a new class-action lawsuit by Slater and Gordon over loyalty discounts on certain types of home insurance policies. The lawsuit adds to the company's legal woes and highlights ongoing concerns about the use of loyalty discounts in the insurance sector.
New Zealand dairy company $Fonterra Shareholders Fund (FSF.AU)$ has reported a 2% increase in third-quarter profit after tax from continuing operations of $1.01 billion. The company has also boosted its full-year earnings forecast, indicating strong performance in the coming months.
Respirator company $Fisher & Paykel Healthcare Corp Ltd (FPH.AU)$ expects its net profit in fiscal 2025 to bounce back to $NZ310 million ($287 million) to $NZ360 million after slowing to $NZ132.6 million this year due to three "abnormal items". This outlook suggests that the company is optimistic about its future growth prospects and is taking steps to address the challenges it faced this year.
Economic Calendar (AEST):
11:30 am: Australia Monthly CPI Indicator (Apr)
3:00 pm: Japan Consumer Confidence (May)
4:00 pm: Germany Consumer Confidence (Jun)
10:00 pm: Germany Inflation (May)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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