AU Morning Wrap: ASX Falls 1.2%; BHP Drops on Anglo American Deal
G'day, mooers! Check out the latest news on today's stock market!
• Wall Street falls
• ASX falls 1.2%; BHP drops on Anglo American deal
• Stocks to watch: BHP
• Wall Street falls
• ASX falls 1.2%; BHP drops on Anglo American deal
• Stocks to watch: BHP
Wall Street Summary
Indexes fell Thursday and were dragged down by big tech. $Meta Platforms(META.US$ fell 10% after its updated revenue outlook for the year did not match expectations.
The $S&P 500 Index(.SPX.US$ fell about 0.46%. The $Dow Jones Industrial Average(.DJI.US$ fell about 0.98%, and the $Nasdaq Composite Index(.IXIC.US$ fell about 0.64%.
$U.S. 2-Year Treasury Notes Yield(US2Y.BD$ climbed to past 5% at the begginning of the day, and then dropped to 4.99% in the afternoon after a major sell off. The $U.S. 10-Year Treasury Notes Yield(US10Y.BD$ climbed to 4.71%.
AU Market Watch
The $S&P/ASX 200(.XJO.AU$ fell by 1.4% in early trade, with the real estate sector dropping 2.3%, financials losing 1.4%, and technology down 0.9%, all impacted by the rise in risk-free rates. The materials sector is also down 1.7%, as $BHP Group Ltd(BHP.AU$'s $56 billion bid for British copper play Anglo American led to a 3.9% tumble in the mining giant's shares.
ASX 200 futures are currently trading at 7,597, down by 21.0 points, indicating a 0.28% decrease.
Commodity
Commodity Prices to Halt Central Bank Rate Cuts: World Bank Says
According to a report released by the World Bank on Thursday, commodity prices, which have remained largely unchanged following a 40% drop between mid-2022 and mid-2023, are expected to drop by 3% this year and 4% in 2025. The report notes that an escalation of conflict in the Middle East could send costs up. Despite the expected drop in prices, they are still predicted to remain above most central banks' inflation targets and roughly 38% higher than pre-Covid-19 levels. As a result, the World Bank believes that central banks will be unable to cut rates due to the impact of commodity prices on inflation.
Crypto
As of latest data, $Bitcoin(BTC.CC$ is priced at $64,499, up 0.29% in the past 24 hours, while $Ethereum(ETH.CC$ is priced at $3,156, up 0.40% in the past 24 hours.
Stocks to Watch
$BHP Group Ltd(BHP.AU$ has made an all-share offer to acquire London-listed multinational miner Anglo American through a scheme of arrangement. The proposed acquisition values Anglo American at £31.1 million, putting a 19% premium on the company at $21.8 billion excluding its platinum producer Anglo Platinum and South African iron ore miner Kumba.
Economic Calendar (AEDT):
11:30 am: Australia Producer Price Index (March Quarter)
1:00 pm: Bank of Japan Interest Rate Decision
10:30 pm: US Core PCE Price Index (Mar)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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