Wall Street rises, China’s plans disappoint, ASX likely to fall

The stragglers

Mining heavyweights Fortescue (down 7.3 percent), BHP (down 4 percent) and Rio Tinto (down 3.1 percent) all had a horror session as iron ore prices plunged on a dour investor reaction to China’s latest stimulus amid fears of oversupply. Weaker oil prices also weighed on energy stocks: Woodside lost 0.2 percent, Santos lost 0.8 percent and Ampol lost 0.7 percent.

Dan Murphy’s and BWS parent Endeavor Group slumped 4.9 percent after warning of a lower profit in the six months to year-end, with store sales flat.

The facts

Jessica Amir, market strategist at Moomoo, said that despite the index’s delay on Monday, the overall trend on the ASX was positive and US companies were buoyed by the prospect of lower taxes and regulations.

However, if the tariffs imposed by the US against China come into force, it could cause ripples in the Australian stock market.

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“The more the US dollar is bought and the higher it goes, the more it hurts the Australian stock market and puts pressure on commodity prices and stocks fall,” Amir said, adding: “It’s not just about China’s ( incentives), but.” Trump’s business policies such as tariffs.

“Gold is down today, every commodity price is taking a 2 percent loss because we have a higher U.S. dollar, and traders are betting that Donald Trump will impose tariffs on China.

“Iron ore inventories have fallen sharply today – they are now down 3 percent because we did not get the stimulus we wanted from China. Investors are taking profits off the table and de-risking commodities, and they are turning to key benefactors who will benefit from the new president and new policies.”

Amir added that it was “not all doom and gloom.”

“Yes, the Australian stock market is down today, but Australians are aware we are in a stock picker market and they are buying anything that will benefit from the US interest rate cut and Trump’s pro-business stance.” “

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On Friday, the S&P 500 rose 0.4 percent to cap its biggest weekly gain since early November 2023, briefly surpassing 6,000 for the first time. The Dow Jones climbed 259 points, or 0.6 percent, while the Nasdaq Composite increased by 0.1 percent.

On Wall Street, Axon Enterprise, which sells Tasers and body cameras used by police officers, helped lead the market. It rose 28.7 percent after posting a higher profit than analysts expected in the latest quarter. The company also raised its full-year revenue forecast to $2.07 billion ($3.1 billion), which would represent growth of 32 percent.

Overall, the S&P 500 rose by 22.44 points to 5995.54. The Dow rose 259.65 to 43,988.99 and the Nasdaq Composite rose 17.32 to 19,286.78.

In the bond market, yields on longer-term government bonds fell.

A preliminary report this morning suggested that U.S. consumer sentiment rose for the fourth straight month to its highest level in six months. The University of Michigan survey, conducted before Tuesday’s election, also found that inflation expectations for the coming year have fallen to their lowest level since 2020.

The yield on the 10-year Treasury note fell to 4.30 percent from 4.33 percent late Thursday, but is still well above its level in mid-September, when it was just under 3.60 percent.

Treasury yields rose in large part because the U.S. economy has remained much more resilient than feared. The hope is that it can remain solid as the Federal Reserve continues to cut interest rates to keep the job market buoyant, now that it has helped bring inflation down close to its 2 percent target.

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Vittoria has won its legal battle against the world’s second-largest coffee company, which took on the Australian brand over glass packaging for instant coffee, claiming it distorted Moccona’s “iconic” cup shape.

“I do not believe that there is any real, tangible risk that a fictitious purchaser, recalling only the rough proportions and general shape of the (Moccona) mold mark, will be confused, confused, astonished or left in doubt, “whether instant coffee sold in the glass form (Vittoria) has the same commercial source as coffee sold in the form brand (Moccona),” said Judge Michael Wheelahan.

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with AP

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