According to ASX futures, the ASX is expected to rise 0.2% or 13 points this morning, buoyed by upward momentum in European markets, particularly supported by gains in energy stocks.
Additional momentum was provided by the minutes of the European Central Bank’s (ECB) meeting in October, which reflected a cautiously optimistic stance regarding the slowdown in inflation in the Eurozone and, as a result, signaled a dwindling chance of further interest rate hikes.
Bond yields rose in response to mixed economic data that showed European economies faced challenges in November but performed slightly better than expected.
The HCOB Eurozone Composite Purchasing Managers’ Index (PMI) rose slightly to 47.1, a slight improvement from the near three-year low of 46.5 in October.
Despite this increase, the index remains below the critical 50 mark that distinguishes growth from contraction, consistent with the survey forecast of 46.8.
In Sweden, Riksbank’s decision to pause its tightening campaign led to a 0.6% rise in the OMX Stockholm 30 index.
Conversely, Dutch bank stocks experienced a downturn, with ING shares falling 0.8%, influenced by the unexpected election victory of Geert Wilders’ anti-EU Freedom Party.
Nevertheless, the Amsterdam AEX index closed with a gain of 0.3%.
Across the continent, the FTSEurofirst 300 index also recorded a 0.3% increase.
By sector, oil and gas stocks led the gains, up 1.3%. Health Care shares also rose, rising 0.7%, helped by Novo Nordisk’s (NYSE:NVO) 1% gain after announcing a $2.3 billion investment to expand the Production of its popular weight loss and diabetes medications.
In the UK, the FTSE 100 index recorded a slight increase of 0.2%, adding to the overall positive sentiment in European markets.
Only futures moved in the US market, which was closed for Thanksgiving; Dow Jones futures rose 32 points to 0.09%, the S&P500 gained 0.05%, while Nasdaq futures rose 12 points, or 0.08%.
Currencies and raw materials
The US dollar rose again against the major currencies overnight.
The euro weakened against the dollar, falling from $1.0924 to $1.0886 and stabilizing at around $1.0905 during the afternoon in North America.
Likewise, the Australian dollar fell from 65.73 US cents to 65.50 US cents before recovering slightly to 65.60 US cents in North American afternoon trade.
The Japanese yen also fell, shifting from 148.88 yen per US dollar to 149.68 yen and hovering around JPY 149.55 in the North American afternoon.
Oil prices continued to fall, losing 1% overnight, extending earlier losses. The weakness was fueled by expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) may not step up their production cuts next year.
This speculation arose following the group’s decision to postpone its political meeting until November 30.
As a result, Brent crude fell 54 cents, or 0.7%, to $81.42 a barrel. U.S. crude oil prices on Nymex also fell 75 cents, or 1%, to $76.35 a barrel in after-hours trading. Trading volumes were particularly low due to the US holiday.
In the metals market, base metal prices saw a boost in London trading on Thursday.
This increase was attributed to the weakening of the US dollar, which increased demand for dollar-priced metals from buyers using the Chinese yuan.
Copper futures rose 0.6% while aluminum futures rose 0.4%.
Gold futures edged up, rising 50 cents, or less than 0.1%, to $1,993.30 an ounce in after-hours trading. Spot gold was trading at around $1,991 an ounce in late North American trading.
Meanwhile, iron ore futures in Singapore fell $1.49, or 1.1%, to $133.18 a tonne.
The decline came as Chinese authorities stepped up efforts to curb the rise of the steel-making raw material. U.S. futures markets were closed for a holiday after closing at a nine-month high of $129.84 a tonne on Wednesday.
On the front of the small cap
The ASX Small Ordinaries lost 11 points or 0.41% last night, tracking the ASX200’s decline, although not as sharply as the index’s loss of 0.62%.
You can read about the following and more throughout the day.
Aurumin Ltd (ASX:AUN) has sold Mt-Dimer iron ore rights for $250,000 in cash, with progress payments that could bring that figure to a total of $1 million, plus a royalty of $1.00 per tonne on exported ore.
Iondrive Ltd (ASX:ION) has appointed respected battery supply chain consultancy Rho Motion to help complete a pre-feasibility study for deep-eutectic solvent (DES) battery recycling technology to advance commercialisation.
Surefire Resources NL (ASX:SRN) has extended the submission date of its claim offer due to extended postal delivery times, with the new deadline being Friday 8 December.
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