ASX 200 up 1% in early trading
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More news: The ASX was 1% higher in early trading as gold miners rallied in response to weak US economic data and as expectations grow that rate cuts are on the horizon.
The materials sector (+1.76%) was the best performer, with gold miners making up nine of the top 10 stocks shortly after market open. Regis Resources (+4.67%), Perseus Mining (+4.63%) and Evolution Mining (+4.47%) were the top performers by 10:23am AEST.
Iron ore miners also surged, with heavyweights BHP (+1.3%), Fortescue (+1.07%) and Rio Tinto (+1.24%) all gaining.
The only sector in the red was tech (-0.45%), tracking overnight losses on the Nasdaq which fell 0.18%.
ASX set to rise despite mixed Wall Street session
The news: The Australian sharemarket is set to open higher despite a mixed session on Wall Street that was impacted by news from large companies Cisco and UnitedHealth and hints from the US Federal Reserve that it could cut interest rates twice this year.
The numbers: Updated at 7.30am AEST:
- ASX futures: up 17.9 points or 0.21% at 8,297.5 points
- Wall Street: Dow Jones up 0.65%, S&P 500 up 0.41%, Nasdaq down 0.18%
- Europe: FTSE 100 up 0.57%, CAC 40 up 0.21%, DAX up 0.72%
- Spot gold: up 0.01% at USD3,240.28 per ounce
- Oil prices: Brent down 2.21% to USD64.63/bbl, US WTI down 2.42% to USD61.62/bbl
- AUD: down 0.42% at 64.05 US cents
- Bitcoin: down 0.54% to USD103,006.10.
The context: Cisco Systems posted a third-quarter earnings beat which boosted shares almost 5% on the Nasdaq while UnitedHealth Group shares tumbled 11% to five year lows after reports by the Wall Street Journal that the US Department of Justice was conducting a criminal investigation into the company for potential Medicare fraud.
Meta also dragged the Nasdaq after it flagged that it would delay the rollout of a flagship AI model.
In economic data, the latest US producer price index fell unexpectedly by the most in five years which Bloomberg said suggested was a result of companies absorbing a hit from higher tariffs. Retail sales growth also fell.
Addressing the opening of a two-day conference US Fed chair Jerome Powell said the central bank felt it needed to reconsider its strategy around jobs and inflation in its approach to monetary policy.
The sources: WSJ, US Federal Reserve, Bloomberg, Bloomberg
