Summary
Oil prices reach a near six-month high, driven by recent Houthi attacks in Saudi Arabia that raise concerns over energy supply disruptions in the Middle East. Brent crude futures settle at over $116 a barrel, prompting inflation worries. This week, the Bureau of Stats is set to release CPI figures for the September quarter, which will be closely monitored following comments from the Reserve Bank of Australia regarding persistent inflationary pressures. Market expectations suggest a 65% chance of a 25 basis point rate hike in the upcoming RBA decision.
In the United States, the Federal Reserve's interest rate decision is anticipated, with expectations for rates to remain unchanged. The earnings season is in full swing, with major companies like Alphabet, Microsoft, and Amazon set to report. US share markets closed lower last week, despite a rise in the energy sector, as concerns over inflation and corporate performance weigh on investor sentiment. The Dow Jones, S&P 500, and Nasdaq all experienced declines, with telecommunications stocks notably affected by reports of competition from SpaceX.
In Europe, markets also faced challenges, with the FTSE Euro First 300 index and the UK FTSE 100 both slipping. Higher oil prices and unrest in France dampen optimism from strong corporate earnings. Notably, Kering's stock fell significantly after disappointing sales figures for its Gucci brand. Looking ahead, Australian markets will be watching for insights from RBA officials and ongoing earnings reports from US companies.
Show Notes
Oil prices have climbed to a near six-month high, adding to inflation concerns ahead of Wednesday's crucial Australian CPI figures. But will the latest data cement expectations of another RBA rate hike? The ASX is poised for a weaker open after Wall Street finished lower on Friday, with US interest rates and big tech earnings also in focus this week. Plus, how many of Australia's biggest companies from more than a century ago remain among the largest today? Join James Gruber, Equity Market Strategist, and Gillian Bowen, Head of Media and Markets at CommSec, as they take you through all the key numbers. Check out our Market News page Follow us on: Instagram LinkedIn YouTube TikTok The content in this podcast is prepared, approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. The information does not take into account your objectives, financial situation or needs. Consider the appropriateness of the information before acting and if necessary, seek appropriate professional advice. See omnystudio.com/listener for privacy information.
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Wall Street tumbled overnight as disappointing reactions to Meta and Tesla's earnings reignited concerns about AI spending, while oil prices climbed to a five-month high amid renewed supply fears in the Middle East. The sell-off is set to weigh on the ASX, which is poised for a softer open after yesterday's decline. Plus, why slowing growth in AI token spending is raising fresh questions about demand for the technology. Join James Gruber, Equity Market Strategist, and Gillian Bowen, Head of Media and Markets at CommSec, as they take you through all the key numbers. Check out our Market News page Follow us on: Instagram LinkedIn YouTube TikTok The content in this podcast is prepared, approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. The information does not take into account your objectives, financial situation or needs. Consider the appropriateness of the information before acting and if necessary, seek appropriate professional advice. See omnystudio.com/listener for privacy information.
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