Overnight, US markets rebounded, with the S&P 500 snapping a five-day losing streak and the Nasdaq gaining ground thanks to a tech surge led by Nvidia. However, Tesla’s decline and iron ore’s continued weakness inject a note of caution. Bitcoin also saw gains, rising above $102,000 on positive US political news, while the Australian dollar strengthened against its US counterpart.
ASX Day Ahead: ASX futures are pointing to a 0.2% rise at the open, mirroring Wall Street’s optimism. However, the ongoing decline in iron ore prices and uncertainty around China’s economic stimulus measures pose a potential headwind for the Australian market.
Iron Ore Slides: Iron ore prices continued their downward trajectory, adding to the existing concerns about demand from China. The continued slide in iron ore prices could weigh heavily on the materials sector and the broader ASX.
Tech Surge: The tech sector is expected to provide some support to the ASX, following the strong performance of US tech stocks overnight. The Nasdaq’s 1% gain, driven by Nvidia, could translate into gains for Australian tech companies.
Ramsay Health Care: Bargain Buy? Ramsay Health Care shares are down approximately 20% since August, prompting some analysts to suggest the stock is undervalued. Morningstar, for instance, believes Ramsay is trading at a 40% discount to its fair value, despite the challenging outlook.
US Political Climate: The resolution of the US House Speaker vote, with Mike Johnson retaining his position, removes a layer of uncertainty from the global political landscape. This stability could positively influence market sentiment.
China Economic Stimulus: The ongoing uncertainty regarding China’s economic stimulus measures continues to be a key concern for investors. The lack of clarity around the scale and timing of these measures is contributing to market volatility.
