The ASX 200 is tipped to open 0.13% higher after Beijing pledged to be “more proactive” with its fiscal policy, including more stimulus, which sent commodities and the dollar alike into a climbing pattern – and futures followed.
Australian companies listed in the U.S. markets were particular winners, with BHP (ASX:BHP) and Rio Tinto’s (ASX:RIO) Wall Street footholds leaping as much as 4.5%.
It wasn’t all hunky-dory between the U.S. and China though, with the latter also opening a probe into heavyweight chipmaker Nvidia in a move that shaved 3% off the company’s share price. China has suspicions the Nasdaq-listed giant, which weighed markets today, may have broken anti-monopoly laws in 2020.
Off the back of the double China whammy, indexes finished down in the States, with the S&P 500 dropping 0.5%, and the Nasdaq composite losing 0.6%.
Back home, the RBA holds sway again with its next cash rate decision.
While overseas markets are already pricing in the Federal Reserve delivering another rate cut before Christmas, it’s very likely Michele Bullock and the RBA keep their powder dry through December – as unpopular as that move may be.
Instead, the major banks are tipping mid-next year for the next change; only the Commonwealth Bank sees change as soon as February.
Either way, we’ll know by 2.30pm Sydney time – the presser drops then.
On the HotCopper forums, eager investors are keeping a close eye on Lycaon Resources Ltd (ASX:LYN) after the West Arunta-based explorer completed its latest drilling run. Other interest has also emerged around Summit Minerals (ASX:SUM) on the other end of the spectrum as it begins work at its Barra Lithium Project in Brazil.
The plunging share price of Platinum Asset Management (ASX:PTM) – which just saw its Regal Partners takeover collapse – is tipped to keep spiralling today too.
One of the property funds under Dexus (ASX:DXC) is appealing a court ruling that it must sell its $830 million stake in the Macquarie Centre in Sydney. The order to sell comes after a contract-related Supreme Court ruling.
Myer (ASX:MYR) has its AGM today as the rush to meet before Christmas begins.
Looking at forex, the Aussie dollar is up, buying 64.3 US cents.
To commodities (in the greenback) and the positive splash from Beijing’s bullish stimulus plot carried over to nearly every corner:
Iron Ore has leapt 2.2% to $105.60 a tonne in Singapore,
Brent Crude is trading at $71.92,
Gold is trading at $2,665 per ounce, and,
US natgas futures are at $3.17 per gigajoule after a hefty 3.25% jump.
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.