The ASX 200 is expected to open 0.57% lower in Week 51 as the Santa rally that seemed nigh-unstoppable early in December continues to lose steam in the face of rate cut worries and a reversal on China’s stimulus plot.
China’s “bazooka” stimulus was put on the backburner days after it was unveiled.
That, combined with Wall Street’s dumpy Friday, has spooked investors.
Friday was particularly bad for the Dow Jones: The famed index extended its losing streak to seven sessions with an 86-point drop – its longest sustained down period since COVID-19. The Nasdaq sagged 0.1% lower.
Back home, we can expect a slower start to the week as Aussie investors and mining companies alike await Jim Chalmers’ mid-year budget update on Wednesday.
This budget update is tipped to highlight the country’s first dive in company tax receipts since 2020; miners will be hit by the $100B downgrade to 2027.
Elsewhere, the Aussie market will watch last week’s big new arrival, DigiCo Infrastructure REIT (ASX:DGT) after it failed to fire. The data centre landlord went from being billed as the year’s biggest IPO to shaving 50 cents on its first day.
Star Entertainment (ASX:SGR) may too see some movement after Gold Coast helmsman Mark Mackay walked away from his leading role after just 95 days in charge.
Another debutant is looking to brave the IPO winter that’s gripped the ASX through the second half of this year today too, with mining company Golden Horse Minerals ringing the bell under ticker GHM at 1pm Sydney time. The Western Australia-based gold explorer is looking to raise $18 million. Shares will open at 25c each.
On the Hotcopper forums, focus has already turned to Contact Energy (ASX:CEN) after the energy giant reported mass market electricity and gas sales up over the month; an electricity bump that offset falling retail sales.
There are several big-hitter AGMs through this week too, with NAB (ASX:NAB), ANZ Group (ASX:ANZ), Orica (ASX:ORI), and Elders (ASX:ELD) all meeting.
Looking at forex, the Aussie dollar is this morning buying 63.6 US cents.
To commodities, which are listed in the greenback,
Iron Ore has dropped 1.19% – mainly because of China’s near-immediate stimulus pullback – to $104.80 a tonne in Singapore,
Brent Crude is trading at $74.49,
Gold is trading at $2,672 per ounce, and,
US natgas futures are at $3.28 per gigajoule.
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.