US equities started the week mixed ahead of inflation data later this week.
United States
As of 3:22pm in New York, the S&P500 was -0.06% lower along with the Nasdaq Composite -0.37% and Russell 2000 -0.63% while the Dow Jones edged up 0.13%. There was little economic data to guide investors, while bond yields were higher with the 2 and 10-year rates up by 5.4 and 1.9 basis points respectively.
Tonight will bring the latest inflation readings for the 12 months to February expected to show core prices rose 3.7% down from 3.9% and headline prices remain unchanged from the 3.1% in January.
Europe
European equities finished lower on Monday, again with little data guide investors. The Euro Stoxx 600 finished -0.35% lower along with the DAX -0.38% and CAC -0.1% while the FTSE100 edged up 0.12%. In economic data tonight, the UK will be in focus with the latest unemployment data expected to show 5k and the unemployment rate steady at 3.8%.
Australia
The ASX is expected to edge up this morning with ASX200 futures up 4 points or 0.05% to 7,718. The index fell -1.82% in broad-based selling with 89% of stocks lower and all sectors lower led by materials -2.56% and financials -2.17%. A slump in order ore prices of -6.88% weighed on major miners with BHP down -2.6% along with RIO -3.6% and FMG -3.5%. Iron ore prices have been weaker since peaking in January as China’s real estate sector and manufacturing activity remain under pressure, with high levels of stockpiles at ports. Traders will turn their attention to a speech by the RBA’s Sarah Hunter at the Financial Review Business Summit today at 9:30 am AEDT.
Commodities
Oil prices rose with both WTI and Brent crude up 0.19% and 0.46% respectively ahead of reports from both OPEC and the IEA this week to provide further clues for the demand outlook. Iron ore futures are up 0.33% this morning following a -6.88% fall on Monday with copper futures also 0.98% higher. Gold rose 0.15% to US$2,182 along with silver 0.6% with Bitcoin extending positive gains for a sixth consecutive session up 4% to US$72,204.
Economic Calendar
12th March 2024
RBA Hunter Speech 09:30
UK Employment (3m Jan) 18:00
Chinese New Yuan Loans (MoM Feb) 19:00
US Inflation (YoY Feb) 23:30
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
