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ASX today – Fears the U.S.-Israeli-led conflict in the Middle East could turn into widespread war has sent global stocks into tailspins. It’s grim reading early on Wednesday, with our ASX 200 futures pointing to a -125-point, -1.4% dump – though it was looking even worse some hours ago, for what it’s worth.
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The latest flashpoint in the conflict surrounds the Strait of Hormuz, where Iran said it would shoot down any ships that travel through. In response, Trump said the American Navy would start escorting oil tankers through.
Then, no surprise: Brent crude briefly touched US$85 a barrel on the panic, with predictions now suggesting we could see $100 before too long.
Those same global analysts seem to think Trump and the U.S. could flinch on the whole conflict if it hits markets too much, but White House officials have been declaring strikes will continue for weeks and “intensify.”
Alongside all that, we’ll be getting fourth-quarter GDP data today. That will be out at 11.30am, and will likely see overall growth quarter-on-quarter.
ASX stocks to watch
Life goes on in Aussie stock land, too, though, even if it’s red galore right now and probably will be through Week 10, so we’ll take a look there. First up, Magellan (ASX:MFG) has been +21% stronger this week after lining up a $130 million placement that will fund its big (planned) Barrenjoey merger.
Elsewhere, lithium has been left bruised in Week 10 after carbonate prices dropped some -13%, to ¥150KMt. PLS Group (ASX:PLS) was one of the Aussie companies worst dented with a -7% drop through Tuesday already.
Similarly, New Hope Corp (ASX:NHC) advanced about the same after Newcastle coal leaped +8%, to US$125.85/t after Qatar halted LNG production.
Rio Tinto (ASX:RIO) has this week approved the restart of Richards Bay Minerals’ $473M Zulti South minerals project in South Africa, after local “community unrest” led to the site’s shuttering some six years ago.
And Endeavour Group (ASX:EDV) has a late report coming out today, as well.
Buck and ore
Now – in forex, the Oz dollar is buying US 70.4c.
Looking at commodities, all in the greenback,
Iron Ore is down -1%, selling at $98.20 a tonne in Singapore today,
Brent Crude gained +4.3%, to $81.07/Bbl,
Gold is selling at $5,118/ounce,
US natgas futures are up +3%, to $3.05 per gigajoule.
That’s HotCopper’s Market Open, I’m Isaac McIntyre – happy trading.
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