Market Open: All signs pointing to soft opening on ASX

ASX today – A weaker overnight US session has provided a negative lead for the ASX, particularly for Australian technology stocks and other growth-sensitive sectors.

However, the effect could be partly offset if miners, energy stocks and the Australian dollar stabilise.

Overnight, ASX 200 futures were around 8,721, implying an initial gain of roughly 0.2%.

Overseas, US shares remained under pressure, with the S&P 500 down about 0.75% and Nasdaq down 1.13% in the latest reported session.

Brent oil prices surged again overnight to over US$107 per barrel.

Brent was up sharply again because the market putting the Middle East supply-risk premium back into crude prices.

The immediate trigger was renewed Houthi missile attacks on Saudi Arabia.

The higher crude prices are supportive for Australian energy stocks but raises inflation/rate concerns for the broader market, while higher bond yields and renewed expectations of further rate tightening remain a headwind for the large Australian banks.

Mining shares were hit particularly hard Thursday, so a stabilisation in iron ore and China-related markets could produce a rebound.

The key numbers to watch today are 8,700 on the ASX 200 and 8,650 below it. A sustained break below 8,700 would make the overnight US weakness more significant; holding 8,700 would suggest the market is absorbing the Wall Street decline.

Local market news

Tungsten Mining (ASX: TGN) has ramped up its Watershed funding strategy with Jefferies appointed as adviser;

Pivotal Metals (ASX: PVT) says downhole EM has refined a Shanty Lake conductor;

Lunnon Metals (ASX: LM8) has reported strong gold results from Plentiful prospect in WA;

Bannerman Energy (ASX: BMN) has wrapped up a strategic financing transaction for the Etango uranium project; and

Talonx Resources (ASXL TXR) has boots on the ground with fieldwork underway at Kihabe, Botswana

Buck and ore

Now – in forex, the Oz dollar is buying US$0.701

Looking at commodities, all in the greenback,

Iron Ore was down 0.10% to $97.14 per tonne in Singapore today,

Brent Crude was up 3.83% to $107.030 per barrel,

Gold was selling at $4274.65,

US natgas futures were up 6.70% to $3.2256 per gigajoule.

That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.

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