Wall Street tumbles after stronger than expected US inflation. Picture Getty
Aussie shares are poised to drop at the open, snapping their five-day winning streak. At 8am AEST, the ASX 200 index futures was pointing down by -0.8%.
In New York, the S&P 500 fell by -0.62%, the blue chips Dow Jones index was down by -0.51%, and the tech-heavy Nasdaq tumbled by -0.68%.
The Aussie dollar plunged by -1.6% to US63.13 after the headline CPI in the US, which excludes food and energy, rose by 0.4% in September (versus forecast of 0.3%).
US bond yields also surged after the release, with the 10-year rising by 11bp and the 2-year by 6bp.
deVere CEO, Nigel Green, says he expects interest rates to remain higher for longer following this data.
“Taking into account the latest US CPI data, and the minutes from the most recent Federal Reserve meeting, we expect there to be one last 25 basis point hike at its two-day meeting beginning October 31,” he said.
To stock news, Ford Motor fell -2% after the United Auto Workers union expanded its strike at the company’s biggest plant in Kentucky, in response to Ford refusing to move further in contract negotiations.
Cinema chain company AMC Entertainment rose 6% ahead of the “Taylor Swift: The Eras Tour” movie debut later today, US time.
Analysts remain optimistic the S&P 500 could be headed for new all-time highs in 2024.
Jeffrey Buchbinder, chief equity strategist for LPL Financial, said history dictates that 2024 could be a good year for stocks.
He predicts earnings growth in S&P 500 will be 12.2% in 2024, led by communication services and the technology sectors.
“The average gain in the second year of a bull market at 12.9% suggests stocks may be poised to add to this year’s solid gains in 2024,” Buchbinder told USA Today.
“We think this bull market still has a way to go and won’t be derailed by a mild, short recession over the next year,” he added.
Gold price fell -0.3% to US$1,867.93 an ounce.
Oil prices eased by -0.2%, with Brent crude now trading at US$86.49 a barrel.
Iron ore futures slipped by -0.75% to US$117.42 a tonne.
Base metals prices were weaker with nickel futures falling by -1.65%, and copper futures flat.
Bitcoin also traded flat in the last 24 hours at US$26748.
CryptosRUs, a popular cryptocurrency YouTuber with over 666,000 subscribers, says the bottom is near for Bitcoin.
According to the channel, the Relative Strength Index (RSI) for Bitcoin recently hit low levels, indicating the cryptocurrency is oversold.
Vysarn (ASX:VYS)
Vysarn has announced the launch of a wholly-owned subsidiary, Vysarn Asset Management (VAM). VAM is the continuation of the company’s strategy to build a vertically integrated whole-of-life, end to end water business. By leveraging the company’s extensive in-house intellectual property, VAM intends to target investment opportunities in water, infrastructure assets and associated opportunities to control, own and toll water.
Unibail-Rodamco-Westfield (ASX:URW)
URW announced that it has received a binding offer from Frey, a real estate company specialising in outdoor shopping centres in Europe, to acquire Polygone Riviera for a net disposal price of €272.3 at a 4% discount to last unaffected book value. Polygone Riviera is a 77,100sqm open air shopping centre located in Cagnes sur Mer. The transaction is expected to be completed during this quarter.
Top End Energy (ASX:TEE)
TEE announced that it has been formally granted Exploration Permit (EP) 501 in the highly prospective Amadeus Basin by the WA government. The company now holds a 100% interest in granted EP 501, a 6,300km2 area covering the highly prospective basin extension of the Amadeus Basin into WA. This is located immediately adjacent to its existing Northern Territory Amadeus Basin portfolio, providing an opportunity for technical and operational synergies to be realised across multiple permits.
Iltani Resources (ASX:ILT)
Iltani announced initial results from its recently completed Stage 1 Orient drilling program in North Queensland. Best assay results from multiple holes include: ORR001: 38m @ 69 g/t Ag, 1.3% Pb, 1.4% Zn, 7 g/t In, 319 g/t Sb & 0.1% Sn from 19m, and ORR003: 41m @ 36g/t Ag, 0.8% Pb, 0.8% Zn, 5g/t In, 257g/t Sb & 0.04% Sn from 39m downhole.
Lucapa Diamond Company (ASX:LOM)
Lucapa announced the results of the recent exceptional stone tender. Seven Lulo diamonds totalling 535 carats were sold for US$15.7m, which comes to an average price per carat of US$29,401. This result reinforces robust demand and prices for large, high-quality diamonds, says Lucapa.
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