Taking a look at global markets, overnight in the US the three key indices are trading sharply higher just after midday in the US with a few more hours of trade left for Tuesday’s session. The Dow Jones, Nasdaq and S&P500 are each up over 2% today so far. Job Openings in the US fell 10% in August which is a sign the tight labour market is starting to cool.
In the UK, the FTSE100 jumped 2.57% on Tuesday extending the rally in the region after Britain’s decision to ditch part of a controversial tax-cut plan and cool expectations for aggressive central bank rate hikes which returns some confidence to investors.
What to watch today:
- Over in Europe, Germany’s DAX soared 3.78% and the French CAC had the biggest gain of 4.24% on Tuesday.
- The local market soared 3.75% yesterday after the RBA’s interest rate hike came in lower than the markets had expected. And in true big bank style, Nab was the first to pass on the full 0.25% rate hike to its variable loan customers, but is ‘constantly reviewing’ the rate hike for its term deposit clients.
- Taking a look at commodities, Brent crude oil prices have fallen 25% over the September 2022 quarter to US$86/bbl, the lowest level since Russia’s invasion of Ukraine. Concerns of slowing economic growth and China’s ongoing pursuit of zero COVID-19 cases remain, underpinning a weak short-term demand outlook for crude oil. An OPEC+ meeting is scheduled this Wednesday; reports suggest the organisation will consider cutting daily production rates by 1MMbbl/day (around ~1% of world supply) to “stabilize prices” which has seen brent crude oil up more than 4% this week, trading at US$91.457/barrel. Iron ore is trading flat at US$98/tonne, gold is up 1.37% at US$1722.46/ounce, and natural gas is trading 5.82% higher.
- ASX futures are expecting the local market to open sharply higher by 1.4% amid the global rally and to extend on yesterday’s surprise RBA rate hike decision-fuelled rally locally.
- On the economic data front for today, there is no local data released today however overseas in the US investors will be eager to see America’s trade balance data for August to determine whether the world’s largest economy continued importing more than it exported for that month, with the market expecting a slight improvement on the trade deficit to -US$67.7bn.
- Trading Central has identified a bullish signal on QBE Insurance (ASX:QBE) following the formation of a pattern over a period of 15-days which is roughly the same amount of time the share price may rise from the close of $11.79 to the range of $12.80-$13.10 according to standard principles of technical analysis.
- Trading Central has also identified a bullish signal on Sigma Healthcare (ASX:SIG) following the formation of a pattern over a period of 16-days which is roughly the same amount of time the share price may rise from the close of $0.68 to the range of $0.77-$0.79 according to standard principles of technical analysis.