Market Highlights: Tesla holds Robotaxi event, Crude spikes again, and Aussie investors feeling optimistic

ASX expected to open slightly lower
US inflation slightly higher at 2.4pc, but still lowest in 3 years
Aussie traders optimistic, with 66pc expecting a rally in next 6 months

The ASX is likely to open slightly lower when the market resumes on Friday following a dip in US stocks overnight.

At 8am AEST, the SPI ASX200 futures contract was pointing down by 0.1%.

Overnight, September’s inflation in the US came in a bit higher than expected at 2.4%, but it was still the lowest point in 3 years.

“Inflation is dying, but not dead,” said Olu Sonola at Fitch Ratings. “The likely path is still a quarter point rate cut in November, but a December cut should not be taken for granted.”

“We expect the FOMC to cut rates by 25 basis points at the Nov. 6-7 meeting,” added Anna Wong at Bloomberg Economics.

On Wall Street, the S&P 500 fell by 0.21%, the blue chips Dow Jones dropped by 0.14%, and the tech heavy Nasdaq slid by 0.05%.

Tesla dropped by almost 1% ahead of its much anticipated Robotaxi Event in the next hour or so.

The company is set to reveal its first driverless car at the event, along with plans for a new robotaxi service that will directly compete with Alphabet’s Waymo. Elon Musk has called it the most important moment for Tesla since the launch of the Model 3 sedan in 2017.

Delta Air Lines fell 1% after projecting profits and sales that fall below Wall Street’s expectations for the last few months of the year, indicating a sluggish recovery after a tough summer travel season.

Drugmaker Eli Lilly & Co. said it was stepping up legal efforts against companies that were briefly permitted to produce and sell generic versions of its popular weight loss drugs until the US shortage ended last week.

Meanwhile, oil stocks could be in focus again today after crude prices jumped by over 3% as Hurricane Milton made landfall in Florida as a Category 3 storm.

At least 12 people have died and over 3.4 million customers left without power after the tornadoes caused widespread damage.

Aussies optimistic about market, prefer local stocks

According to the latest survey from trading platform IG, Aussie traders are feeling optimistic about the market, with 66% expecting growth in the next six months—the highest confidence since early 2022.

While many believe the US indices will see the most growth, particularly the Nasdaq (22%) and S&P 500 (15%), Aussie traders are less worried about the local economy compared to their peers in the UK, Singapore, Germany, and Japan.

Millennials are primarily worried about inflation affecting their investments, while Baby Boomers are more concerned about risks from new Covid variants and geopolitical issues.

Millennials tend to prefer investing in US shares, real estate, and cryptocurrency more than Baby Boomers do.

Interestingly, female traders are nearly twice as likely to invest in real estate compared to their male counterparts (27% vs. 14%).

Women also place a higher value on educational content, with 40% prioritising it compared to just 26% of men.

Aussie investors also show a strong preference for local markets, with over half of their investments (56%) in Australia and only about a third (32%) in US stocks.

And looking ahead, 36% of Aussie traders plan to incorporate AI tools or algorithms into their trading strategies over the next year.

Back to markets …

Gold price rose by 0.8% to US$2,629.85 an ounce.

Oil prices jumped by 3%, with Brent crude now trading at US$79.10 a barrel.

The benchmark 10-year US Treasury yield traded flat at 4.06%.

The Aussie dollar was up by 0.4% to US67.43 cents.

Bitcoin was down 1.5% in the last 24 hours to US$59,886, while Ethereum traded flat at US$2,370.

And iron ore traded slightly lower to US104.70 a tonne.

5 ASX small caps to watch today

Golden Deeps (ASX:GED)
GED said recent drilling at Havilah, located in NSW’s Lachlan Fold Belt, has revealed significant deposits of copper and zinc, along with silver and gold. Two diamond drillholes, HVD001 and HVD003, have shown thick zones of sulphide mineralisation, suggesting proximity to a large copper-gold system. HVD003, for example, intersected an impressive 84-metre section rich in copper and zinc, while HVD001 found 40 metres of sulphide mineralisation, including gold content. CEO Jon Dugdale said these results confirm extensive copper-zinc mineralisation and highlight the potential for a larger mineralised system, similar to significant deposits in the region.

Kalgoorlie Gold Mining (ASX:KAL)
KalGold has begun aircore drilling at two new gold exploration sites, Kirgella West and Kirgella East, within the Pinjin Gold Project. This marks its first systematic exploration in the area, focusing on sites near the recently defined Kirgella Gift and Providence deposits. The initial two-week drilling program will cover up to 4,500 metres. KalGold sees significant untapped gold potential in the southern Laverton Tectonic Zone, similar to the northern end with major deposits. Although this area has been underexplored, recent nearby discoveries suggest promising opportunities.

Ragnar Metals (ASX:RAG)
Ragnar has announced promising assay results from its channel sampling program at the Orrvik lithium project in Sweden. The sampling revealed an outcrop of spodumene-bearing pegmatite measuring at least 11.55 metres, with an average lithium oxide (Li2O) grade of 1.45%. Notably, it includes a high-grade section of 3 metres at 3.11% Li2O. The company said high-grade spodumene suggests Orrvik could be a top drilling target. Ragnar now aims to confirm the project’s potential scale and is preparing for its first drilling program to explore further pegmatite swarms in the region.

Nagambie Resources (ASX:NAG)
Nagambie is set to restart diamond drilling at its high-grade gold-antimony orebody at the Nagambie Mine in early November. The company has secured a drilling rig to expand its JORC Resource, which currently stands at 415,000 tonnes, with an average grade of 3.6 g/t gold and 4.3% antimony. Chairman Kevin Perrin noted that both gold and antimony prices are at record highs, making the mine a prime target for exploration. The planned construction of a new antimony-sulphide processing plant will further enhance the project’s potential value.

Terra Uranium (ASX:T92)
T92 has signed agreements with ATHA Energy Corp that will allow ATHA to acquire up to 60% of T92’s Pasfield Lake Project, while T92 can acquire up to 70% of ATHA’s Spire and Horizon Projects. This partnership expands T92’s presence in the Athabasca Basin by nearly 61,000 hectares. ATHA plans to start drilling at the Pasfield Project in 2025. T92 will also begin work on shallower uranium targets at the Spire and Horizon Projects this month, focusing on previously identified uranium-rich boulders and outcrops.