Local markets have opened higher, following a boost for tech stocks on Wall Street overnight and a jump among local techies and uranium stocks this morning.
Elsewhere, there are some major deals being worked out in the world of business, Nine boss Mike Sneesby has pulled the pin on his time with the company, some big names on the bourse are trading ex-div and – as I’m writing this – every market sector is on positive ground.
I am nursing the mother of all headaches today, so this – I hope – will be mercifully brief, so that I can retreat back into the darkness of my bed and pretend that the rest of today isn’t actually a thing. (Take two tablets and if pain persists, call your doctor in the morning – Ed.)
TO MARKETS
The ASX 200 benchmark has been working its way towards a 0.75% gain at lunchtime, after local tech stocks and some of the bigger names in the uranium sphere made solid headway since the bell rang this morning.
Infotech is out in front of the rest of the market this morning, taking its lead from a rally among tech stocks on Wall Street overnight, with the sector getting a boost from it’s bigger names.
That includes WiseTech Global (ASX:WTC) , up more than 3.0% today to take its gains since the start of calendar 2024 to nearly +75.0%, as it’s trading beyond $130 per share, a decent climb from its recent low point of $85 in early August.
Nuix (ASX:NXL) is also on the move, with the company still moving positively – up 7.6% this morning – since it confirmed its numbers for FY24, when it saw a 20.9% YoY increase in revenue.
The Energy sector also saw a boost among uranium miners this morning, with Paladin Energy (ASX:PDN) up 9.99%, Boss Energy (ASX:BOE) up more than 10% and Deep Yellow (ASX:DYL) on +9.9% for the morning as well.
The rise among the yellowcakers comes after Russian President Vladimir Putin suggested that Moscow should consider limiting exports of uranium, titanium and nickel, as the country’s “four-week conflict” with Ukraine enters its 931st day.
The Materials sector was struggling, though, partially held back by a couple of the big guns doing ex-div this morning, including BHP (ASX:BHP) which is showing a 1.6% dip as a result.
Nothing out of the ordinary there today – other than everything in positive territory, which makes a nice change for the week.
In other news today, former RBA chief Bernie “The Sandman” Fraser has weighed into the discourse surrounding the Reserve Bank, agreeing with federal treasurer Jim Chalmers that the board’s interest rate calls are “smashing the economy”.
However, Fraser is at odds with Chalmers over plans to split the RBA into two governing bodies – one to look after monetary policy, and a separate board convened solely to figure out what to do about interest rates.
Fraser told the ABC that the move “will lead to a ‘preoccupation with inflation’ to an exclusion of other things it must take into account as part of its charter”, as if every single Australian with half a brain and a bank account isn’t already preoccupied with what’s happening in the rates department.
“Talking tough on inflation and threatening to keep interest rates high, and even put them up higher, will overall do nothing at all to wind in inflation, Fraser said.
"What it will do, though, is worsen the problem for those people who are already suffering, and those that would be further caught up in any worsening of the likely slowing down in the economy and in unemployment and so on.
"So I think it's time for the bank to take regard to all its objectives that are specified in its charter, and get on its bike and start winding interest rates down to avoid these threatening problems on recession and unemployment, and greater vulnerability for the poorest sectors of our community."
And a major story developing overseas is the possible sale of 7-Eleven – as in, all of them, everywhere – after Canadian company convenience store giant, Couche-Tard (It’s French for Convenience Store Customer) indicated that it’s keen to take over 7-Eleven and become the world's largest convenience store network.
It’s hard to tell what stage negotiations are at, though, as Couche-Tard representatives have allegedly (ie, not at all, because I am making this bit up) turned up for meetings, only to find locked doors with hand-written “Back in 5 Minutes” signs taped on them for hours at a time.
The real story is that Couche-Tard has reportedly lobbed a US$38 billion bid on the table, and 7-Eleven’s Japanese owners reckon that’s nowhere near enough to pay for the 80,000-or-so outlets the company currently has across 20 countries.
Which seems as good a segue as anything to move onto what’s been happening on overseas markets.
NOT THE ASX
Overnight, fresh data in the US revealed that consumer prices climbed just 2.5% from last August, down from 2.9% in July, while core prices ticked up slightly to 3.2%.
Wall Street surged on the CPI reading – the S&P 500 gained 1%, the Dow Jones rose by 0.3% and the tech heavy Nasdaq lifted by over 2%.
While this gives the Federal Reserve room to cut interest rates when it convenes on September 17, a more modest 25 basis-point cut is now expected instead of a bigger 50-basis point cut, Eddy Sunarto reported this morning.
“The data reinforced bets that the Federal Reserve might lower interest rates by 25 basis points, with the market currently pricing in an 85% probability,” said Erik Boekel at DHF Capital.
In US stock news, market darling Nvidia popped by over 8% after CEO Jensen Huang revealed the company was struggling to keep up with soaring demand.
Pfizer fell 0.3% despite being upgraded to a Buy rating by Zacks, reflecting its improved earnings estimates.
Meme stock Gamestop plunged 12% after reporting that its revenue fell by nearly a third to $798.3 million in the last quarter.
Albemarle‘s shares soared 13% after reports that Chinese EV battery maker CATL may have suspended two lepidolite mines, potentially cutting China’s lithium carbonate production by 8%. This sparked a buying frenzy in lithium stocks, including those on the ASX yesterday.
And following a less-than-stellar performance in the presidential debate yesterday, Trump Media & Technology Group shares plummeted 10.5%, taking its loss to 57.33% over the past 6 months.
In Asian market news, things are looking up around the region today, with Japan’s Nikkei surging 2.84%, while the Hang Seng and Shanghai markets added a more modest 0.19% and 0.05% respectively.
Sources: The Australian Business Review
