Markets at a glance 31 October
Leah Gibbons | nabtrade
Around the grounds
The Australian share market has continued to edge lower as rate cut hopes dwindle after yesterday’s mixed inflation print. Rate-sensitive banks are mixed, with three of the ‘big four’ up between 0.1% and 0.3%. Miners are lower, despite a climb in the price of iron ore and energy stocks are up in tandem with a gaining oil price. Bucking the broader trend, gold plays, with Australian gold stocks lower despite a record-high bullion price.
On the data docket, retail sales barely budged in the month of September, proving August’s jump was fleeting. Sales volumes for the whole third quarter meantime rose modestly with recent tax cuts being saved rather than spent with spending per person still down nearly 2% compared to a year earlier.
In the news
Looking at some of the stocks to watch in today’s trade, Coles (ASX: COL) has posted a slowdown in comparable sales in the first quarter, due to lower shelf prices for its products, despite beating market estimates for group sales.
The grocer, which is under trial by ASIC for allegedly misleading customers, separately unveiled an agreement to construct its third automated distribution centre in Victoria, taking its capital expenditure expectations to AU$1.3 billion for fiscal 2025.
Australian listed shares of Origin Energy (ASX: ORG) are edging higher after first quarter revenue rose thanks to its stake in the APLNG project, underpinned by strong natural gas sales and higher prices. In the same space, shares of AGL Energy (ASX: AGL) have taken a hit after brokerage Barrenjoey cut the stock to ‘underweight’ from ‘neutral’ and slashed the price target to AU$11.20 from AU$13.80 per share. The stock is up nearly 18% YTD, as of last close.
Elsewhere, shares of Mineral Resources (ASX: MIN) have surged and set for their strongest trading session since mid-September if gains hold. This after the diversified miner said it plans to sell two exploration permits in the Perth basis and form joint ventures with Hancock over remaining onshore explorations lands for up to AU$1.13 billion. It comes as the miner posts an 11% rise in its mining services quarterly production volumes.
The stock is down 48.5% YTD, as at last close.
Finally, JB Hi-Fi (ASX: JBH) shares have jumped the most in more than two months after the consumer electronics retailer posted quarterly sales growth of nearly 5% in Australia, beating market estimates. The stock is up around 57% YTD.
Going global
Rounding things out on the global stage Japan’s Nikkei 225 is in the red, retreating from a two-week closing high yesterday, tracking U.S. stocks lower overnight, as the market awaits the Bank of Japan’s policy meeting later today.
Stock specific, Samsung has reported a mixed third quarter saying while profit jumped from a year earlier, the pace of recovery has weakened from the prior quarter as it struggles to cash in on the AI boom. Operating profit came in at 9.2 trillion won in the July to September period, slightly above the company’s preliminary estimate it flagged earlier in the month.
To the currency markets, the yen continues under pressure ahead of that Bank of Japan rate decision where the central bank is expected to keep ultra-low interest rates steady. The Japanese currency is now down over 6% for the month, putting it on track for what could be its biggest monthly loss against the US dollar since November 2016.
Finally, the greenback has hit the pause button ahead of the all-important non-farm payrolls data Friday night and of course the US presidential election next week. The Euro is flat after both regional inflation data and EZ GDP came in stronger than expected, while sterling has traded flat to negative so far on the day.
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