ASX set to lift after big night on Wall Street. Picture Getty
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Aussie shares are set to rise sharply when the market opens on Friday, mirroring the big rally in New York. At 8am AEST, the ASX200 futures contract was pointing up by 1.1%.
Overnight, the S&P 500 notched its biggest one-day rally since November 2022, rising by 2.3%. The tech heavy Nasdaq surged by 2.87%, while the blue chips Dow Jones also lifted by 1.76%.
Stocks staged a strong comeback after the latest labour market data eased worries about a significant slowdown in the world’s largest economy.
According to the Labour Department data, new claims for US unemployment benefits fell to 233,000 last week, coming in lower than anticipated and helping to quell recession concerns.
Treasury 10-year yields rose (bond prices down), and cryptocurrencies surged as investors returned to riskier assets.
“We are exercising caution, but think that the panic that started earlier in the month was overblown,” said Chris Zaccarelli at Independent Advisor Alliance.
Markets have been in turmoil since last week’s US jobs data raised worries that the Fed might delay rate cuts too long, putting the chances of a “soft landing” at risk.
“Volatility can be unsettling, but it can also be an opportunity to revisit your allocations and do a gut check on what level of risk you’re comfortable with, given the wide variety of possible outcomes,” Liz Young Thomas at SoFi told Bloomberg.
In stocks news, Delta Air Lines rose 6% despite anticipating a US$380 million revenue loss this quarter from last month’s CrowdStrike tech outage.
Apple rose almost 2% after revealing that it was developing a new, smaller Mac mini as part of a major refresh of its Mac lineup, featuring AI-focused chips.
Eli Lilly & Co jumped 10% as it narrows the gap with Novo Nordisk A/S in the booming obesity market by boosting its weight-loss drug supplies.
And, Under Armour Inc. was a top performer overnight, soaring 20% after reporting results that beat analysts’ forecasts and raising its guidance, reflecting improvements under returning founder Kevin Plank.
Back home, News Corp (ASX:NWS) has told shareholders that there is “third-party interest in a possible deal involving the Foxtel Group”.
News Corp owns 65% of Foxtel Group, with the rest held by Telstra. The Foxtel Group includes the traditional pay TV service, sports streaming service Kayo Sports, streaming platform Binge, and the newly launched Hubbl.
Republican nominee Donald Trump has suggested that the president should have some influence over interest rates and monetary policy, challenging the long-standing tradition of the US Fed Reserve’s independence from political influence.
At a press conference last night (US time) at his Mar-a-Lago club, Trump stated, “I’ve been very successful and made a lot of money, and I believe I have a better instinct than many Federal Reserve officials.”
He criticised Fed Reserve Chair Jerome Powell for being “a little bit too early and a little bit too late” in adjusting interest rates.
Trump has often voiced frustration over the executive branch’s limited role in monetary policy.
Historically, US presidents have refrained from publicly criticising the Fed Reserve, respecting its independence.
Since July 2023, Powell and the Fed Reserve have maintained a benchmark interest rate at its highest level in over two decades to combat inflation.
However, with recent signs of a weakening jobs market and the US unemployment rate rising to 4.3% in July, some economists have argued that the Fed has been slow to adjust rates downward.
Gold price rose by 1.7% to US$2,424.85 an ounce.
Oil prices lifted by 0.7%, with Brent crude now trading at US$78.86 a barrel.
The benchmark 10-year US Treasury yield rallied by a further 5 basis points (bond prices lower) to 3.99%.
The Aussie dollar surged higher by 1% to US65.92 cents.
The iron ore price slipped by 1% to US$99.95 a tonne.
Bitcoin meanwhile skyrocketed by 12% in the last 24 hours to US$62,200, while Ethereum also jumped by over 14% to US$2,700.
TG Metals (ASX:TG6)
TG Metals has reported promising results from its initial drilling at the Jaegermeister prospect, part of the Lake Johnston Li-Ni-Au Project in WA. The drilling has revealed high-grade lithium pegmatites, with the best assay result showing 2.68% Li2O.
Drilling uncovered multiple spodumene-bearing pegmatites, with significant intersections such as 10 metres at 1.19% Li2O and 6 metres at 1.38% Li2O.
Seismic data also indicate potential for discovering more pegmatites in the area. TG Metals’ CEO, David Selfe, said Jaegermeister could develop into a significant lithium project, with further drilling planned to explore promising western extensions.
GenusPlus (ASX: GNP)
GNP has secured several key contracts through its Genus-PFA division for network upgrades and maintenance across Australia’s East Coast. This follows the acquisition of Pole Foundations Australia in 2022, enhancing its pole inspection and reinforcement services.
Recent contracts include a four-year extension with Energy Queensland worth $26 million, a new 5-year deal with Ergon Energy valued at $50 million, and additional contracts with Ergon Energy and Ausgrid totalling around $50 million. These awards highlight Genus-PFA’s growing presence in the sector.
EVZ (ASX:EVZ)
EVZ has secured a major contract worth approximately $23 million through its subsidiary, Brockman Engineering. This contract, awarded by Rio Tinto, involves designing and procuring bulk process water tanks for the seawater desalination project at Parker Point, Dampier, WA.
Work on the design and procurement will start immediately, with site mobilisation planned for December 2024 and completion expected in late 2025. This project is set to boost EVZ Limited’s revenue and earnings in FY25 and FY26 as part of its diverse portfolio in the Energy and Resources sectors.
Equinox Resources (ASX:EQN)
Equinox has started a Phase 1 RC drilling program at its Mata da Corda Rare Earths Project in Brazil to explore the depth of high-grade clay samples. Recent surface sample assays confirm high grades of rare earth elements, including up to 5,879 ppm TREO. The samples also reveal notable titanium dioxide levels, indicating potential for a secondary product.
The initial drilling has begun at a site with promising surface results, about 1 kilometre north of the KP Fértil Mine. Drilling is expected to continue through mid-August, with plans to explore areas with higher surface sample anomalies.
Structural Monitoring Systems (ASX:SMN)
SMN has announced that its subsidiary, Anodyne Electronics Manufacturing Corp (AEM), has received a new Supplemental Type Certificate (STC) for its MTP136D P25 forest service radio. Designed for the US Forest Service and aerial firefighting, this radio provides advanced communication across a broad frequency range and can easily replace older models.
It is already being installed on aircraft in North America. AEM’s Sales Director, Tony Weller, says this certification will accelerate the radio’s adoption, with a potential market of over 3,000 units expected in the coming years.
At Stockhead we tell it like it is. While TG Metals and Equinox Resources are Stockhead advertisers, they did not sponsor this article.
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