The Australian Securities Exchange (ASX) is expected to open higher this morning, following positive gains in the US markets overnight. The ASX SPI 200 Futures are trading up 27 points, or 0.35%, to 7,725.
The Australian Bureau of Statistics (ABS) is scheduled to release its March quarter inflation data at 11:30 AM AEST. Projections indicate a further cooling in consumer prices to 3.4%, down from 4.1% in the December quarter. Annual CPI inflation reached its peak at 7.8% in December 2022.
Economists from Commonwealth Bank of Australia (CBA) predict a 0.7% increase, exceeding the 0.6% rise seen in the December quarter. Bloomberg economists anticipate a 0.8% price increase in the quarter, suggesting that consumer prices are gradually approaching the Reserve Bank’s target band of 2%-3%, potentially paving the way for interest rate cuts.
In the US markets, Tuesday’s trading session was marked by gains as robust corporate earnings allayed concerns over rising interest rates. The Dow Jones index surged by 264 points or 0.7%, the S&P 500 index climbed 1.2%, and the Nasdaq index added 245 points or 1.6%. General Motors, Spotify, GE Aerospace, UPS, Globe Life, and Danaher were among the companies that reported strong quarterly results and experienced stock price increases. Tesla reported its earnings after the closing bell, indicating plans to expedite the launch of more affordable models following lower-than-expected profit.
European sharemarkets also closed higher on Tuesday, driven by positive eurozone business activity data and expectations of potential interest rate cuts. The FTSEurofirst 300 index gained 1.1%, posting its best day in six weeks. The UK FTSE 100 index rose 0.3% to a new record high, fueled by a 2.5% increase in technology stocks.
In the currency markets, the euro, Australian dollar, and Japanese yen strengthened against the US dollar. Commodities witnessed a rise in global oil prices, while base metal prices experienced a decline.
Today’s economic calendar in Australia includes the release of the Consumer Price Index (CPI). Several companies, including Atlas Arteria, Beach Energy, Fortescue, Insignia Financial, Lynas Rare Earths, Mineral Resources, Perseus Mining, PointsBet, Red 5, and Regis Resources, are scheduled to release their quarterly sales results. Woodside Energy and Latitude will host their AGMs.
In the small-cap sector, the S&P ASX Small Ordinaries gained 0.45% yesterday, outperforming the ASX 200, which declined by 0.05%. Mako Gold Ltd discovered a new high-grade gold zone at Tchaga North, while Brookside Energy provided an update on its multi-well Flames-Maroons Development Plan (FMDP) operations. Predictive Discovery Ltd reported positive near-resource drilling results from its Bankan Gold Project in Guinea.
