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ASX today – Australian shares are set to edge lower after Wall Street capped its worst week since June, with the tech sell-off spreading beyond chipmakers to some of the biggest names in the market.
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The Nasdaq fell 2.14% on Friday, while the S&P 500 lost 1.09% and the Dow slipped 0.34%. Concerns around AI spending and credit risks weighed on sentiment, while the VIX volatility index jumped 21% to almost 20.
WHAT TO WATCH TODAY
The pressure on US technology stocks could flow through to Australian tech names, but there are signs investors are shifting towards more defensive sectors. US energy, healthcare and consumer staple stocks outperformed over the week.
Oil is another key factor. Brent crude pushed back above US$109 a barrel amid concerns about supply disruptions in the Middle East and Russia. Higher oil prices could support energy producers but also add to inflation pressures.
China remains important for the local market, particularly resources stocks, while investors will also be watching the Australian dollar, which strengthened to US69.68 cents.
The ASX finished last week higher, but the question now is whether local shares can hold their ground as overseas investors reassess technology valuations and rising energy costs.
LOCAL MARKET NEWS
Contact Energy (ASX: CEN) is considering a green Capital Bond offer for up to NZ$225M;
Evion Group (ASX: EVG) has taken to the air with drone magnetic survey commences at Carp fluorspar project;
Terrain Minerals (ASX: TMX) has kicked off a 10,905m RC drilling program at Lightning;
Yandal Resources (ASX: YRL) has extended gold mineralisation at depth at Arrakis; and
West Cobar Metals (ASX: WC1) has obtained promising early results from scandium leach testwork at Salazar.
Now – in forex, the Oz dollar is buying US$0.6959
Looking at commodities, all in the greenback,
Iron Ore was up 0.36% to $90.90 per tonne in Singapore today,
Brent Crude was up 3.72% to $109.860 per barrel,
Gold was selling at $4166.39
US natgas futures were down 3.71% to 3.1160 per gigajoule.
That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.
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