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The ASX200 is set to trend downwards today, with futures expected to fall by 0.09 percent, despite a strong performance by US markets on Friday, but instead likely pushed down by a slump in the iron ore price.
According to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity, iron ore weakened 17.09 percent since the beginning of 2024, and it is now down 4.51 percent compared to last week.
The S&P 500 and Nasdaq 100 both reached record highs before close on Friday, rising 0.5 percent and 1 percent, respectively, while the Dow Jones lifted 67 points.
US markets were boosted by data which revealed a slowdown in US hiring in the month of June, coupled with an increase in the rate of unemployment to its highest level since late 2021. This in turn placed downward pressure on Treasury yields and bolstered hopes of a potential rate cut from the Federal Reserve in September. According to the data, nonfarm payrolls rose by 206K in June, while job growth in the previous two months revised down by a total of 111K.
Also in the news is the results of the second round of France’s elections, which have shown a surprise win by leftwing parties, led by the New Popular Front, which gained close to 190 seats – with President Macron’s centrist alliance gaining up to 170 seats.
Turning to the ASX, Magnetite Mines Ltd (ASX:MGT) has announced that it’s signed a deal with Japanese steel supplier JFE Shoji to help fund a definitive feasibility study on the Razorback Iron Ore Project in South Australia.
Meanwhile, FBR Ltd (ASX:FBR) has announced the arrival on US markets of its bricklaying robot Hadrian X.
And Patriot Battery Metals Inc (ASX:PMT) has extended the Vega Zone of mineralisation at its Corvette lithium project in Canada.
In Forex, one Australian dollar is still buying 67.5 US cents.
Brent crude is down 0.31% to around US$86.70 a barrel, iron ore is down 1.55% to $111.31 per tonne.
Gold is down 0.19% to $2,386 an ounce and natural gas has fallen 1.29% to $2.30 a gigajoule.
