Market Highlights: ASX set to rise, but Tesla's vague plans and China's message confuse investors

ASX set for solid gains amid mixed signals from China
Wall Street hits record highs as earnings season kicks off
Tesla shares drop 8pc over vague details on new ‘robotaxi’

The ASX is poised for a solid jump this morning as traders digest the mixed signals from the Chinese economy. At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.6%.

On Saturday, the Chinese Ministry of Finance opted for another round of modest stimulus measures.

While the Ministry didn’t specify the scale of the new measures, the announcement has somewhat dampened hopes for a massive ‘bazooka’ package.

“So the overall sentiment for investors is negative,” said Shen Meng at Chanson & Co.

On Friday, Wall Street kicked off earnings season on a high note, with stocks reaching all-time peaks as major banks surged following strong results.

The S&P 500 rose by 0.61%, notching its 45th record in 2024, the blue chips Dow Jones lifted by 0.97%, and the tech heavy Nasdaq climbed by 0.33%.

BlackRock Inc. raked in a record US$221 billion in client cash last quarter, lifting the world’s biggest money manager to a whopping US$11.5 trillion in assets. Shares rose 3.6%.

JPMorgan shares rose 4% after the bank reported an unexpected increase in net interest income (NIM) for Q3 and raised its revenue forecast.

Tesla tumbled by 8% after analysts called out the lack of detail regarding the new ‘robotaxi’ presented by CEO Elon Musk on Thursday night.

At the event, Musk announced that Tesla will start making the fully autonomous “Cybercab” by 2026, priced under US$30,000, and showcased a van that can carry 20 people around town on its own—he claimed this could transform cities by turning car parks into parks. He also tweeted that all transport will be fully autonomous in 50 years.

However, analysts felt the event lacked detail and were disappointed by the vague information. Musk’s history of making big promises without following through hasn’t helped his credibility.

“They seemed focused on branding and marketing Tesla’s vision, rather than giving concrete numbers for us to model out,” said Tom Narayan at Royal Bank of Canada.

The earnings season continues in full swing this week, with Citi, United Airlines, AI chip equipment maker ASML, Netflix, and American Express all set to report.

Back home, the key highlight this week will be September’s jobs report, coming out at 11:30am AEST on Thursday.

Brace for volatility amid tight election

A 49-year-old man from Las Vegas was arrested at a security checkpoint outside Donald Trump’s rally in Coachella on Saturday night after deputies found a shotgun, a loaded handgun, and ammo in his black SUV.

Trump narrowly escaped an assassination attempt in July when a bullet grazed his ear at a rally. In September, another man was charged with trying to kill him near his Palm Beach golf course.

With the US presidential election just weeks away, the outcome is too close to call, and both Senate and House races are also uncertain.

“A divided government in Washington, DC—with no single party controlling the White House, Senate, and House of Representatives—is likely,” said Stephen Dover at Franklin Templeton.

This could lead to extended uncertainty, with recounts and legal disputes in key swing states, suggesting that investors should brace for volatility.

Dover said investors should be cautious as volatility may rise before and after the election.

Dover said that “the adage that ‘markets are driven by the fundamentals’ will also be tested” if the results are disputed.

Investors should stay alert, as the political landscape will continue to shape market dynamics into December.

Back to markets …

Gold price rose by 0.9% to US$2,657 an ounce.

Oil prices fell by 0.5%, with Brent crude now trading at US$79.04 a barrel.

The benchmark 10-year US Treasury yield lifted by 4 basis points (bond prices lower) to 4.10%.

The Aussie dollar traded flat at US67.44 cents.

Bitcoin was down 0.5% in the last 24 hours to US$62,871, while Ethereum fell by 0.6% to US$2,464.

And iron ore jumped by 1.5% to US$105.95 a tonne.

5 ASX small caps to watch today

Turaco Gold (ASX:TCG)
Turacos said a new mineralised trend has been found near the historic Herman Mine, with seven shallow drill holes confirming an additional trend parallel to the 1.25 million ounce Woulo Woulo resource. All holes showed similar alteration styles, with results including 15m at 2.11g/t gold. The mineralised structure appears to extend north for another kilometre. Follow-up drilling is expected to add more ounces to the existing resource, while exploration on the Nianemlessa trend is underway, testing promising gold-in-soil anomalies.

Infini Resources (ASX:I88)
Infini said assays have expanded the Talus soil anomaly by about 340% and revealed several new anomalies, greatly enhancing the project’s scale and potential. A high soil uranium assay defines an approximately 800m x 100m zone aligned with a north-south shear and three major converging faults, remaining open to the east and west, with a peak result of 7.5% U3O8.
Notable high-grade uranium soil assays include results of 4,056 ppm and 3,679 ppm U3O8, among others. Additional geochemical anomalies in the North and South suggest the possibility of undiscovered uranium deposits in the area. These impressive soil geochemistry results have significantly boosted the project’s prospectivity, adding numerous new drill targets, said I88.

Dreadnought Resources (ASX:DRE)
DRE has shared metallurgical test results from the Star of Mangaroon, part of its 100% owned Mangaroon Gold Project in WA. Five composite samples were tested, showing recoveries with an average of 96.7% from gravity and leach methods, reaching up to 99.5%. The gravity recovery averaged 74.4%, peaking at 85.2%. The tests confirm that the mineralisation at Star of Mangaroon is free milling and suitable for conventional cyanide extraction. These results will support a scoping study for an open pit at the deposit, with an initial mineral resource expected in November.

NickelSearch (ASX:NIS)
NIS has identified visible copper mineralisation at the soon-to-be-acquired Mt Isa North Project. Exploration at the Moonside prospect revealed copper from two adits, close to previous sampling results of 30.0% Cu and 64.7 g/t Ag. At Conglomerate Creek, an outcropping copper occurrence was found, linked to a significant stream sediment anomaly over 6km. Samples have been sent for analysis, with results due in 4-6 weeks. NIS is also planning a 1500m drilling campaign at the Surprise prospect in Q4 2024 to extend known mineralisation.

Equinox Resources (ASX:EQN)
Equinox has confirmed the presence of ionic adsorption clays at its Campo Grande Project in Bahia, Brazil. A single-step ammonium sulphate wash yielded recoveries of up to 80% Total Rare Earth Oxides (TREO), with high-value elements like Neodymium, Praseodymium, and Dysprosium achieving recovery rates of 88%, and Terbium reaching 91%. The project’s recoveries are comparable to those at nearby Brazilian Rare Earths. Ongoing drilling is targeting 277 high-priority sites to uncover additional sources of rare earth elements.

At Stockhead we tell it like it is. While Equinox Resources is a Stockhead advertiser, it did not sponsor this article.