Markets at a glance 28 October

Around the grounds

The Australian share market has started the week with little direction ahead of the all-important inflation print released on Wednesday. NAB expects the trimmed mean figure to come in at 0.8%, inline with RBA forecasts.

Diving into the detail, falls in energy and gold are being partially offset by gains in the miners, which are largely being support by a rising iron ore price. Dalian iron ore futures have surged in the Asian session, to touch the highest level in more than a week, on the back of fresh stimulus from China calming some concern about the top consumer’s faltering economic recovery and steel demand.

Energy meantime is tracking oil prices lower, with the sub-index down over 1% as oil prices fell nearly $4 a barrel overnight after Israel showed restraint on Iran. The energy sub-index is down over 17% YTD.

Tech stocks are higher, catching the tailwind from a bounce on the Nasdaq last week, while gold stocks have slid, despite bullion prices edging higher.

In the news

Quick check in on some of the stocks we’re watching in today’s trade. Shares of Temple & Webster (ASX: TPW) have slid nearly 6% after the company posted 21% growth in the first half of fiscal 2025, compared to the 26% at its mid-August update. The stock is up nearly 44% this year, as of last close.

Raiz Invest (ASX: RZI) has surged nearly 11%, as the company reports an over 15% pop in first quarter revenue, with total funds under management up nearly 32%. The stock is up around 5% YTD, as of last close.

A different story for Australian listed shares of Mineral Resources (ASX: MIN), coming under pressure as the lithium miner says its investigation into undeclared payments made to companies linked to its founder would be over by next week.

Founder Chris Ellison admitted to failing to properly disclose revenue from his overseas entities to the ATO earlier in the month. The stock is down over 50% this year, as of last close.

In the broker space, Morningstar says Qantas (ASX: QAN) first-half earnings are shaping up to be a little stronger than expected, thanks to a lower fuel bill and improved domestic pricing. On Friday the airline raised first-half domestic revenue expectations and said it was on track to restart dividend payments from the second half, sending shares to a record high.

On the back of that update, Jefferies has lifted the price target on the country’s flag carrier to AU$10.86 from AU$10.53. The stock is up nearly 50% this year, as of last close.

Elsewhere, shares of Australian listed Whitehaven Coal (ASX: WHC) have marched higher as analysts at Citi up the price target to AU$8 from AU$7.60 per share, with a ‘buy’ rating retained. It comes after the company reported a better-than-expected quarterly production figures on Friday. The stock is down nearly 10% this year, as of last close.

Going global

Rounding things out on the global stage Tokyo’s Nikkei 225 has traded sharply higher to kick off the week, while the yen has sunk to a three-month low as Japan’s ruling coalition loses parliamentary majority, clouding rate hike prospects. The US dollar meantime has pushed higher on course for its largest monthly rise in 2 and a half years amid signs of strength in the economy and bets former President Donald Trump will take back the White House. The Australian and kiwi units are both lower slipping to 2 and a half months lows.

Finally, US investors are gearing up for a mammoth two weeks with 278 of the 500 companies in the S&P/500 handing down earnings, including tech titans Amazon, Apple, Alphabet, Microsoft and Nvidia. Then focus shifts to the FOMC’s November meeting and the hotly contested US Presidential Election.  

All prices and analysis at 28 October 2024.  The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer.  This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.  Past performance is not a reliable indicator of future performance.  Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB.  Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.