Markets at a glance 6 November

Leah Gibbons | nabtrade

Around the grounds

The Australian share market is higher, tracking peers on Wall Street, boosted by technology and commodity sectors as early results from the tightly fought US election begin to drip through. Breaking it down from a market’s perspective, in the event of a Trump presidency, tariffs could trigger a global trade war, potentially harming Antipodean economies that depend on free trade.

Looking at the sectors gold stocks are subdued as investors hold back from taking big positions until the election’s outcome was known, with focus shifting to the Federal Reserve’s upcoming policy meeting. Markets are pricing in a 96% chance the Fed will cut rates by 25 basis points, according to the latest CME FedWatch tool. The miners meantime have surged as the price of iron ore climbed on the prospect of more stimulus measures from China. Financials are up and tech stocks are up by over 1%.

Finally, across the ditch the New Zealand benchmark has reversed earlier losses as the country’s jobless rate rose to a near four-year high in the September quarter, all but cementing bets of a 50 basis-point cut by the NZ central bank later this month.

Going global

Let’s take a closer look at the all-important US presidential election. US futures are back online signalling stocks on Wall Street are expected to edge higher when trade gets underway. The greenback meantime has also pushed higher as early results from that hotly contested election trickle through, suggesting the race remain too close to call. Treasury yields are also higher, as some betting sites swung to favour former President Donald Trump over Vice President Kamala Harris.

As expected, Republican Donald Trump has won Indiana and Kentucky while Democrat Harris has secure Vermont, according to projections from Edison Research.

Elsewhere around the region, MSCI’s broadest index of Asia-Pacific shares outside Japan is little changed, while Tokyo’s Nikkei 225 jumped over 1%. Chinese stock markets meantime have surged to hover near a one-month high as investors expect a meeting of top policymakers in Beijing this week to approve further stimulus measures.

Over to the currency plays, the euro has slipped, retreating from a one moth top overnight, while the Australian unit is lower, fetching around 65.8US cents.

In the news

Quick check on what’s making news in today’s trade. Australian listed shares of Goodman Group (ASX: GMG) are marching higher as the property developer confirms FY25 operating earnings per share growth of 9% and logs like-for-like net property income growth of nearly 5% as of the end of September. The stock is up over 44% YTD, including today’s moves.

Shares of Core Lithium (ASX: CXO) are singing a similar tune, up over 9% after the diversified miner reported lithium mineralisation from its Blackbeard prospect in the Northern Territory. The stock though is down 53% YTD, including today’s moves.

And News Corp is in focus after two more U.S. proxy advisory firms urged investors to support a hedge fund’s campaign to change the company’s dual-class share structure, saying no investor should have voting rights that are different from others.

Finally, the brokers have come out in full swing after yesterday’s news Domino’s (ASX: DMP) long standing CEO Don Meij would be retiring after over two decades at the helm. Jefferies says the resignation is ‘positive because it paves the way for the business to make the changes required to improve unit economics and restore growth’. Price target cut to AU$43 from AU$44 a share, with a ‘buy’ rating retained.

Citi also taking the scissors to its PT on the stock, down to AU$37.50 from AU$38.50, ‘buy’ rating retained, but has slashed its NPAT forecast by 3% to 5% for FY25-27.

Domino’s has lost over 46% so far this year, significantly underperforming the 200 consumer discretionary index.  

All prices and analysis at 6 November 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.