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The XJO looked set to end the week on a strong note with the bourse back just above 8,700pts as at 2.40pm AEDT after having one of the worst weeks in recent memory.
Persistent high bond yields, high Brent Crude oil prices, high inflation data at home and high interest rates are doing their part to quash sentiment; the same data is largely true for America, too, but somehow, Wall Street keeps breaking record highs.
Looking ahead to what we could see on Monday, US futures were green at 2.40pm AEDT even as investors expect another Fed rate hike this year and after an OpenAI revenue report came in lower than expected.
Talking of OpenAI, that sensational company was linked to the big news story of the day on Friday – the planned ASX IPO by Firmus, an AI microchip and data centre player trying to establish itself as a giant in Australia and Southeast Asia, will now not go ahead.
The company’s prospectus was loose on detail and despite promising great things ahead, investors were spooked – especially offshore investors who were probably wondering why, exactly, an AI giant was listing in Australia and not on the NASDAQ.
Even Shanghai might’ve made more sense, if you forget for a second there isn’t a geopolitical backdrop there that would have made that impossible.
My point is, the ASX is known for mining, biotech, and banks. The most exciting thing we have in way of tech is drone stocks.
Talking of drone stocks – EOS inked another $700M deal today out of the blue, quickly becoming the most viewed thread on HotCopper.
So what will next week bring? More of the same, unfortunately, if I had to guess. We get labour force data next Thursday (I think I may have incorrectly said it would be this Thursday earlier in the week; my apologies there,) but outside of that, not much local ABS data for the market to feast on.
And so that leaves us watching the US, and, reacting to oil prices. So: more of the same. But it looks like the invisible hand has agreed the XJO ought to be around 8,700pts, so I think we’ve probably seen the worst pass.
Touch wood.
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