US blowout jobs report boosts stocks and hits bonds. Picture via Getty Images
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The ASX is expected to nudge higher when the market resumes on Monday as crude prices keep climbing.
At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.3%
On Friday, a blowout jobs report in the US suggested robust health of the US labour market, boosting stocks and hitting bonds.
The S&P500 rose by 0.90%, the blue chips Dow Jones was up by 0.81% to a new record, and the tech heavy Nasdaq surged by 1.22%.
The payroll report showed the US added 254,000 jobs in September, far exceeding expectations by over 100,000. Also, the unemployment rate unexpectedly fell to 4.1%.
“With the Fed already starting to reduce rates, that’s going to take further pressure off the economy. A soft landing is our base case going forward,” said Matthew Bush at Guggenheim Investments.
The yield on the 10-year note jumped 11 basis points to 3.96% (bond prices slumped), marking its largest weekly increase in almost a year.
Crude prices rose another 0.5% as the conflict between Israel and Hamas in the Gaza Strip spreads to the wider region, with intense bombing in Beirut over the weekend.
Analysts say the ongoing conflict, along with a major port strike and the devastation caused by Hurricane Helene, could fan inflation back to life.
In stocks news, Boeing rose by 3% after its joint venture with Lockheed Martin and United Launch Alliance successfully completed the second launch of its new Vulcan rocket.
Boeing and Lockheed are competing against Elon Musk’s SpaceX and Jeff Bezos’s Blue Origin to become the US government’s preferred contractor for national security space missions.
The US Space Force has recently selected these three companies to bid for contracts worth US$5.6 billion from 2025 to 2029.
Investors eager to see that Tesla is more than just a car company will get a reality check on Thursday, October 10, when the company plans to unveil its ambitious robotaxi concept vehicle at Robotaxi Day.
“We continue to believe Tesla is the most undervalued AI name in the market, and we expect Musk & Co. to unveil some ‘game changing’ autonomous technology at this event,” said Tesla bull analyst, Dan Ives.
Shares in another electric vehicle manufacturer, Rivian, dropped as much as 7% after the company reduced its production forecast for the year and missed delivery expectations.
Meanwhile, Spirit Airlines plummeted 25% amid reports that the budget airline may be close to bankruptcy.
According to the Wall Street Journal, Spirit has been negotiating with bondholders about a possible bankruptcy filing. Bloomberg added that talks to secure a rescue deal to restructure its debt have stalled.
Oil prices saw their biggest jump in over a year last week, rising by around 10% on the back of concerns about a potential strike on Iran’s oil facilities by Israel.
Hedge funds and other investors have been reversing their bearish stances on oil, which had previously been based on concerns about slower growth in China.
Just a few weeks ago, many were betting against oil, but now they’re rushing to buy options that protect against price spikes.
After news of a massive stimulus package from China, bullish sentiment returned, with traders increasing their long positions in Brent crude.
There’s also been a big increase in demand for oil options after Iran attacked Israel, particularly calls that bet on prices hitting US$100 a barrel.
“In essence, the market was unprepared for the surprise, and we are seeing FOMO now that prices are finally moving in favour of the bulls,” said Carley Garner at DeCarley Trading.
Gold price fell slightly by 0.10% to US$2,652.75 an ounce.
Oil prices rose by 0.5%, with Brent crude now trading at US$78.05 arrel.
The benchmark 10-year US Treasury yield climbed a further 11 basis point (bond prices lower) to 3.96% after the blowout US jobs report.
Bitcoin was up by 1% in the last 24 hours at US$62,541, while Ethereum also lifted by 1% to US$2,434.
Santana Minerals (ASX:SMI)
Santana announced that its Bendigo-Ophir Gold Project in Central Otago, New Zealand, has been officially designated as a ‘Fast-track Project’ under the government’s Fast Track Approvals Bill. The project is recognised for its potential to boost economic growth both regionally and nationally. Santana is currently finalising environmental studies to prepare for the mine’s approvals, and this recognition will allow for a more streamlined review process. The Fast Track Approvals Bill is expected to be enacted by the end of the year.
Nyrada (ASX:NYR)
Nyrada has provided an update on its Brain Injury program, announcing the successful completion of a study on its lead drug candidate, NYR-BI03. This in vivo micronucleus study, conducted under Good Laboratory Practice (GLP) conditions, found no evidence of genetic damage in treated rats. Nyrada says it is on track to start its first human Phase I clinical trial for NYR-BI03 in late 2024. This drug is designed to protect the brain in cases of stroke and traumatic brain injury. Previous studies have shown promising results, including significant protection of brain tissue during a stroke and effective cardioprotection in heart studies.
Castillo Copper (ASX:CCZ)
Castillo has reported findings from its surface sampling at the Big One Deposit in the NWQ Copper Project, located in the Mt Isa copper belt. The sampling revealed strong copper mineralisation, with rock chips showing up to 12% copper. This suggests that copper extends further west from historical mining areas, and possibly to the south and east as well. The geological team has also completed mapping to better understand copper-bearing fault trends, leading to the identification of new priority targets for drilling.
Dreadnought Resources (ASX:DRE)
Dreadnought has announced strong results from its diamond drilling program at Tarraji-Yampi in Western Australia. The drilling tested six targets around the Orion deposit, with significant findings at the Orion, Orion Repeat, Orion Offset, and OR1 targets. Notable results include 3 metres at 4.5% copper and 2.2 grams per tonne gold at Orion, as well as several other promising intersections. The drilling also identified multiple conductors that suggest further mineralisation.
Nexus Minerals (ASX:NXM)
Nexus has shared positive results from its diamond drilling program at the Crusader-Templar Gold Deposit, part of the Wallbrook Gold Project in Western Australia. The program, which involved 13 holes and 1,473 metres of drilling, confirmed shallow and high-grade gold mineralisation, reinforcing confidence in the deposit’s potential. Key results included several high-grade gold intersections, such as 1.7 metres at 23.50 grams per tonne gold. Nexus plans to update its scoping study soon.
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