ASX set to rise after a rebound in New York. Pic: Getty Images
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Aussie shares are set to bounce back when the market opens on Tuesday. At 8am AEST, the SPI ASX200 futures contract was pointing up by 1%.
Overnight, US stocks also rebounded strongly as investors jumped back in after Friday’s big sell-off.
The S&P 500 was up by 1.16%, the blue chips Dow Jones rose by 1.2%, and the tech heavy Nasdaq lifted by 1.16%.
All eyes are now on Wednesday’s (US time) August CPI report, which is the last big piece of the puzzle before the Fed decides on rates on September 18.
Economists are predicting a 2.6% year-over-year reading, which is a drop from the 2.9% recorded in July.
At the recent Jackson Hole meeting, Fed Chairman Powell hinted at a rate cut in September, and last week’s mixed job numbers pretty much locked in that cut.
“The market seems to be reconciling that the Fed is probably more likely to do the smaller 25-basis-point cut and that’s been my position all along,” Peter Grant at Zener Metals.
To markets, bond yields are bouncing higher (bond prices down), while the Aussie dollar is near a nine-month high.
Iron ore prices bounced back above US$90 a tonne after six days of drops, with hopes for new stimulus from China, the top consumer.
To stocks news, Apple has just launched its iPhone 16 at its product event in Cupertino, California.
The company also rolled out updates to the whole Apple Watch range and added new hearing protection features to the AirPods Pro 2. Shares didn’t move much on the news.
PayPal has teamed up with Shopify, striking a deal to handle some of Shopify’s debit and credit card transactions.
NYSE-listed discount retailer Big Lots Inc. has gone for bankruptcy protection and is set to sell off its assets and business in a court-managed process.
Discount stores like Big Lots, Dollar Tree and Dollar General have been struggling with their shares plunging 20-30% over the past week or so.
Once the go-to for bargain hunters, they’re now losing traction to the bigger players as Walmart and Target slash their prices.
Meanwhile, more companies are choosing to delist from the ASX due to rising compliance costs, difficulty raising capital, and a focus on short-term results.
So far this year, 54 companies have asked to be removed from the ASX, with another 11 delisted by the exchange itself.
AusCann Group (ASX:AC8) and others were delisted in August for not paying listing fees, while Splitit Payments (ASX:SPT) went off the board in July.
BWX (ASX:BWX) entered voluntary administration in April 2023 and was removed, and Byron Energy (ASX:BYE) delisted in May as part of a strategy change.
“Companies list on the stock exchange primarily to raise capital and provide liquidity for their shareholders,” explained Jamie Green at PrimaryMarkets.
“However, for smaller firms, capital can be hard to come by and shares can trade infrequently.
“Faced with these challenges, many smaller firms conclude that the costs and compliance obligations of remaining listed are not an effective use of shareholders’ funds,” Green added.
He explained that delisting can help them save money and focus on their core business.
“By delisting, a company can insulate itself from these market-driven dynamics, reducing valuation volatility and creating a more stable environment for long-term planning,” Green noted.
Gold price rose by 0.6% to US$2,502 an ounce.
Oil prices jumped by 1%, with Brent crude now trading at US$71.60 a barrel.
The benchmark 10-year US Treasury yield lifted by 1 basis point (bond prices lower) to 3.70%.
The Aussie dollar fell by 1% to US66.72 cents.
Bitcoin meanwhile was up 4% in the past 24 hours to US$57,415 and Ethereum also rose by 1% to US$2,363.
Duratec (ASX:DUR)
The construction services company and its associate DDR Australia have secured major contracts. Duratec will refurbish the King Bay Supply Base Wharf in WA for $21.8 million, starting in February 2025. DDR has also won a $54.7 million Defence contract for upgrades and new infrastructure across the Northern Territory, with work beginning in October and lasting 30 months. Work will include refurbishing buildings, upgrading engineering services, and installing new infrastructure.
Voltaic Strategic Resources (ASX:VSR)
Voltaic is starting a detailed exploration program at its Paddy’s Well Project in Western Australia. Field crews will focus on 16 carbonatite targets, conducting surface sampling and mapping to refine potential drill sites. They will explore for niobium, rare earth elements, and uranium, and will also identify new areas that might be promising for lithium. This work aims to advance these targets to drill-ready status.
Aruma Resources (ASX:AAJ)
Aruma has announced promising results from its initial surface sampling at the Fiery Creek Copper Project in Queensland. The program found high-grade copper at the Piper prospect, with results including 11.83% and 11.53% copper, as well as significant antimony and silver levels. Previous sampling at Fiery Creek also showed high copper grades. The project displays strong potential for copper deposits, and Aruma plans to conduct detailed ground surveys and an IP survey in the coming months to refine drill targets.
Firetail Resources (ASX:FTL)
Firetail is ramping up exploration at its York Harbour Cu-Zn-Ag Project in Canada. The company is preparing for drilling by reconditioning access tracks and establishing drill sites. At the moment, it has identified promising sulphide zones overlooked in previous drilling and will analyse additional unsampled drill core. Permits for an expanded drilling program and geophysical surveys have been granted, and an airborne EM survey will start in late September to locate new targets along a 16km trend.
Stavely Minerals (ASX:SVY)
Stavely has completed aircore drilling at the high-grade Junction copper prospect in Western Victoria. The drilling has confirmed the geometry of high-grade copper mineralisation and identified several promising intercepts, including copper-gold-silver lodes. Historic results at Junction include significant copper and silver grades. The recent drilling program, which involved 20 holes, has been finished and rehabilitated. Assay results from these samples are expected in a few weeks.
At Stockhead we tell it like it is. While Firetail Resources is a Stockhead advertiser, it did not sponsor this article.
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