Aussie shares are set to start higher on Tuesday, following the positive trend in New York. At 8am AEDT, the ASX 200 index futures were up by +0.2%, signaling a potential upturn.
The S&P 500 recorded a gain of +0.45%, the Dow Jones index remained flat, and the Nasdaq surged by +0.61%. This positive performance in the US market has set the stage for a potentially strong opening for Australian shares.
Fed officials’ messages continue to influence market sentiment, with Cleveland Fed president Loretta Mester cautioning that the market is getting ahead of the central bank on rate cuts. She sought to reassure investors and temper the exuberance that has been driving up stock and bond prices.
In other news, Amazon’s shares rose by 2.7% amid reports of discussions to invest in bankrupt Diamond Sports Group. On the flip side, Apple’s shares fell almost 1% due to a trade agency’s ruling that led to the halt of the company’s smartwatch sales to comply with a US import ban.
The release of the latest board meeting minutes by the RBA is scheduled for 11.30am AEDT today, which will be closely watched by investors.
Turning to the gold market, prices have seen a significant increase of almost 15% this year, reaching a record high. The expectation of multiple interest rate cuts in the next year could potentially drive the US dollar lower and provide support to the gold price in the medium term.
Geopolitical risks and concerns about economic contractions in China and the Eurozone are further bolstering gold’s appeal as a safe haven asset. Market analyst at XS.com, Rania Gule, believes that any corrections in the gold price could be viewed as buying opportunities.
Looking ahead, market focus will be on signals about the Fed’s future monetary policy direction, particularly the upcoming Personal Consumption Expenditures (PCE) Price Index and US Gross Domestic Product (GDP) for Q3.
In addition, other market movements include a rise in the gold price and oil prices, along with a slight increase in the value of Bitcoin over the last 24 hours. The Aussie dollar remained relatively stable, while US 10-year Treasury yield saw a marginal rise.
In light of these market dynamics, here are five ASX small caps to keep an eye on today:
– Singular Health (ASX: SHG) announced a major enterprise license order for its 3Dicom R&D software.
– Tissue Repair (ASX: TRP) received approval for its third US Patent application, providing protection for the Glucoprime compound and molecule.
– Novo Resources (ASX: NVO) formed a joint venture with SQM Australia for its prospective lithium-nickel tenements.
– Lithium Universe (ASX: LU7) reported progress on the engineering study of its Quebec Lithium Processing Hub.
– EVZ Limited (ASX: EVZ) provided revenue guidance for the first half of the year, indicating an expected improvement in profit margins.
It’s important to note that while Lithium Universe is a Stockhead advertiser, they did not sponsor this article.
