Aussie shares likely to fall today; Wall Street ended lower. Picture Getty
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Aussie shares are set to fall when the market opens on Thursday as Wall Street swung into losses overnight. At 8am AEST, the ASX200 futures contract was pointing down by 0.2%.
After rising nearly 2% earlier in the day, the S&P 500 ended the session down by 0.8%. The blue chips Dow Jones index fell by 0.60%, and the tech-heavy Nasdaq retreated by 1%.
The rapid slide in US stocks was triggered by a lacklustre US$42 billion Treasury sale as investors shunned the 10-year US bond auction.
Despite the latest dip in stocks, JPMorgan Chase’s strategists argue that there’s no clear indication the market has reached oversold levels.
“On our calculations, for the equity allocation at the global level to return to post-2015 average levels, equity prices would have to decline by a further 8% from here,” JP’s Nikolaos Panigirtzoglou told Bloomberg.
In stock news, Walt Disney fell 4.5% after releasing a mixed Q3 report. While the company reported its first strong profit from streaming, it also struggled with issues at its theme parks.
Shopify jumped 18% after it reported Q2 sales and profits that exceeded analysts’ expectations, proving that the Canadian e-commerce company is handling slow consumer spending well.
Boeing dropped 1% after it revealed plans to redesign a fuselage part that detached from a new 737 Max 9 in January, as it works to recover from the crisis.
Rivian Automotive‘s stock fell 7% after it kept its full-year production target the same as last year. Despite a plant shutdown, the CEO expects output to increase in 2025.
And Novo Nordisk also dropped 7% after reporting weak sales of its popular weight-loss drug Wegovy, as it faces increased competition in the growing market.
Closer to home, looking ahead to today’s ASX session, AMP, Mirvac, NexGen Energy, Piedmont Lithium, and Transurban are all set to report their earnings results.
Meanwhile, cryptocurrencies are falling again, with Bitcoin and Ethereum shedding another 2-5% in the past 24 hours.
Some analysts believe Bitcoin’s recent decline is due to whales reducing their positions, including a prominent trader known as “Mr. 100”.
The Mr.100 address has been steadily buying BTC since the collapse of the FTX exchange in November 2022. Since February 14, it has been adding at least 100 BTC almost every day.
Fund manager Cathie Wood took advantage of the market’s recent steep drop by buying shares in tech companies, just as her main fund hit a new low for 2024.
Wood’s ARK Innovation ETF bought stocks including Amazon, Advanced Micro Devices, and Roku.
Her fintech fund also purchased shares of Reddit and Meta Platforms, according to daily updates from her firm, Ark Investment Management.
These purchases came at the beginning of the week, when global markets were shaken by weaker-than-expected US employment data.
While US tech stocks had suffered the most during the latest turmoil, many still show gains for the year.
However, Wood’s ARKK fund has been struggling.
It continued to decline, closing at its lowest point since November, and is down over 20% this year. From its peak in early 2021, it has lost about 75% of its value.
Gold price fell 0.1% to US$2,381.20 an ounce.
Oil prices rebounded sharply by 3%, with Brent crude now trading at US$78.49 a barrel.
The gains followed data showing a larger-than-expected drop in US crude inventories.
The benchmark 10-year US Treasury yield jumped by a further 5 basis points (bond prices lower) to 3.95%.
The Aussie dollar traded flat at US65.23 cents.
The iron ore price slipped by 1.5% to US$101.05 a tonne.
Revolver Resources (ASX:RRR)
Revolver has signed a Memorandum of Understanding (MoU) with the China Copper Industry Investment Alliance (CCIIA) for the full offtake of copper cathode from the Dianne Copper Mine. This agreement sets up a framework for Revolver to source and supply additional copper cathode, includes provisions for development and funding, and aims to secure a non-dilutive way to restart production at the mine. Revolver is advancing towards a final investment decision in the second half of 2024 and is optimistic about the project’s low-risk development and potential revenue.
Westar Resources (ASX:WSR)
Westar has decided not to acquire the Uley North Graphite Project in South Australia after completing due diligence. Despite identifying promising graphite exploration targets, the company faces potential land access issues that would take too long to resolve. Westar CEO Jason Boladeras explained that the decision aligns with Westar’s renewed focus on gold and copper projects. The company will now provide its data to the vendors and shift its efforts to advancing exploration at the Mindoolah and Gidgee North Projects, while also seeking new gold and copper opportunities.
Novonix (ASX:NVX)
Novonix and CBMM have signed a joint development agreement to improve nickel-based cathode materials. Novonix will use its patented zero-waste process to create and test cathode materials with CBMM’s niobium products, aiming for better performance and lower costs. Novonix will handle material testing and cell building, while CBMM will supply materials for comparison. If successful, the partnership may lead to integrating CBMM products into Novonix’s production.
Cobre (ASX:CBE)
Cobre has completed a Trade-off Study for its Ngami Copper Project in Botswana, showing that In-Situ Copper Recovery (ISCR) is the preferred method for extracting copper-silver ore. The study, conducted by METS Engineering, found ISCR to be the most cost-effective and efficient option. As a result, Cobre will move forward with detailed engineering and design work. Advanced metallurgical tests have begun and will provide data over the next 4 to 5 months to help refine the extraction process and design a pilot program.
Global Uranium and Enrichment (ASX:GUE)
GUE has begun its first drilling program at the Maybell Uranium Project in Colorado. The 4,000-meter, 40-hole drill program will explore both shallow high-grade areas near historic open pits and deeper, potentially thicker lower-grade zones. The timing aligns with strengthened market fundamentals following recent legislation banning Russian uranium imports. The drilling is expected to be completed in 30-45 days.
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