AU Morning Wrap | ASX Rises Amid RBA Decision Anticipation; Cettire Soars 24%
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500, Dow Hit Closing Highs
• ASX Rises; RBA Rate Decision Pending
• Stocks to watch: PSQ, ALX, CTT, etc.
Wall Street Summary
The market was flatter Monday, but the Dow Jones Industrial Average hit a trading high, and closed with the S&P 500 at new records. About 6400 equities climbed Monday, while 5200 declined as investors priced in last week's rate cut for the last full trading week for Q3.
The $S&P 500 Index (.SPX.US)$ traded +0.28%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.15%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.14%.
Monday, investors heard from two Fed officials about rate cuts- both said we have a while to go lowering rates before reaching a neutral, less restrictive policy.
Speaking virtually Monday at a European Economics and Financial Center in London seminar, Atlanta Federal Reserve President Raphael Bostic said he voted for a 50-point cut because PCE inflation fell to 2.5% in July. He believes the Fed's efforts to cool the economy have nearly achieved their goal. He did not share his feelings on a future cut.
The next Federal Open Market Committee after the presidential election, on Nov 6-7.
Over the next 12 months, we have a long way to come down to get the interest rate to something like neutral to try to hold the conditions where they are," Chicago Fed President Austan Goolsbee also said Monday. Bloomberg reported Goolsbee had not made it clear whether he supported a second 50 basis point cut.
The market also priced in S&P manufacturing PMI numbers, which came in lower at 57 compared to estimates of 58.6.
AU Market Watch
Australian shares opened slightly higher, tracking gains from Wall Street where major indices rose modestly. The S&P/ASX 200 Index increased by 0.01% to 8153.6, driven by strengths in the materials and energy sectors.
On Wall Street, the Dow Jones, S&P 500, and Nasdaq each saw small gains, with the S&P 500 achieving a new closing record for the third consecutive session. Energy stocks led with a 1.3% rise.
Australian investors are focused on the upcoming Reserve Bank cash rate decision, expected to remain unchanged, and Governor Michele Bullock's press conference.
In commodities, gold hit a record high, copper advanced on optimistic economic signals from China, but iron ore and oil prices fell. Bitcoin remained stable above $63,000.
US policymakers suggested potential rate cuts ahead, with Chicago Fed President Austan Goolsbee emphasizing a shift in focus toward the labour market as inflation nears the central bank's target.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $63,247, nearly flat in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $2,647, up by 3.14% in the past 24 hours.
Stocks to Watch
Shares of $Pacific Smiles Group Ltd (PSQ.AU)$ and $Atlas Arteria Ltd (ALX.AU)$ will trade ex-dividend on Tuesday.
Online luxury retailer $Cettire Ltd (CTT.AU)$ has released its audited full-year accounts, confirming no changes to its revenue policy.
$Coles Group Ltd (COL.AU)$ and $Woolworths Group Ltd (WOW.AU)$ face backlash over alleged fake discounts: The supermarket giants have already suffered PR damage due to the ACCC's allegations.
$Aspen Group Ltd (APZ.AU)$ holder MA Financial increases its stake to 10.26% from 7.96%.
$Breville Group Ltd (BRG.AU)$ CEO James Clayton discloses the sale of 115,000 shares, now beneficially owning 278,000 shares and 224,000 performance rights.
Silver producer $Adriatic Metals PLC (ADT.AU)$ lowers its 2024 production guidance to 180kt from the previous 240-300kt but maintains its 2025 guidance of 750-800kt.
$REA Group Ltd (REA.AU)$ may raise its bid for Rightmove by up to 20 cents to secure the deal.
Economic Calendar (AEST)
2:30 pm: RBA Interest Rate Decision (Consensus: Hold)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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