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ASX today – Australian shares are heading for a 20-point drop on Tuesday morning, following the global trend for most markets outside the States, as investors keep one eye on the U.S. and Israel attacks in Iran.
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Oil prices have skyrocketed since the conflict began, while gold (and a long-standing safe haven) and the U.S. dollar have both sprung higher.
The Nasdaq and S&P 500 were even in the green during trade, though Wall Street’s the only major trade hub really gaining; the FTSE and Stoxx 600 have dropped between -1.2% and -1.6%; the Nikkei retreated about the same.
The whole thing’s a melting pot of problems: It’s a “worst-case scenario” for global oil production and may send big buyers like China and India to Venezuela (the U.S.) and Russia. Any surging commodity prices will hit us hard Down Under, too, and drive up the inflation we’ve been trying to wrangle – which is why Michele Bullock this morning declared she’s “alert” to the conflict and its impacts.
(And this isn’t saying anything about all the Aussies stranded across the globe as the conflict impacts flights through Asia and the Middle East.)
Investor eyes also stay firmly fixed on the Strait of Hormuz, which Iran has closed to ships after the U.S.-Israeli attacks entered a third day.
No surprise some are looking for safety. Let’s look at Aussie stocks.
ASX stocks to watch
It’s a busy resources day under the shadow of all the global conflicts, with Atomic Eagle (ASX:AEU) already reporting that it’s increased the uranium resource at Muntanga in Zambia by some 24% after maiden drilling.
Similarly, Brazilian Critical Minerals (ASX:BCM) has confirmed there’s continuous rare earth mineralisation across a ~82km2 footprint at the Ema project in Apuí.
Pioneer Minerals (ASX:PMM) has delivered “exceptional” surface results that have recorded returns up to 4,257ppm uranium concentrate at Countryline, and is looking into more concealed targets nearby.
And, Leeuwin Metals (ASX:LM1) is spreading out further at Evanston, with significant step-out drilling beyond the existing resource returning shallow gold intercepts within the top 100 metres from the surface. These hits confirm that an “additional resource growth” is now on the cards for the WA company.
Life360 (ASX:360) has a late quarterly out today, too.
Buck and ore
Now – in forex, the Oz dollar is buying US 70.8c.
Looking at commodities, all in the greenback,
Iron Ore is up +0.7%, selling at $99.10 a tonne in Singapore today,
Brent Crude gained +7%, to $78.41/Bbl,
Gold is selling at $5,452/ounce,
US natgas futures are up +4.5%, to $2.98 per gigajoule.
That’s HotCopper’s Market Open, I’m Isaac McIntyre – happy trading.
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