Markets at a glance 29 October
Around the grounds
The Australian share market has edged higher on this Tuesday session, marking a third session of gains, boosted by a rise in domestic banking and real estate stocks as investors await key third quarter inflation data tomorrow.
Breaking down the sectors, financials are tracking higher, while the rate-sensitive real estate stocks have surged rising nearly 1.5%. Miners meantime are also edging higher as the price of iron ore rose on renewed hopes of fiscal stimulus measures from China, while retailers are supporting the broader bourse, more on that in a minute.
Bucking the broader trend, energy, falling in today’s trade tracking a falling oil price on reduced risks of tensions in the Middle East.
In the news
Getting a check in on some of the stocks on watch in today’s trade. Back to the retailers, Myer (ASX: MYR) is in firm focus as the department store owner sets to takeover retail billionaire Solomon Lew’s Premier Investments (ASX: PMV) portfolio of apparel brands in a deal valued at $863.8 million.
The move will see Myer issue Premier 890.5 million new shares in the retailer and comes after Premier parked plans of a proposed demerger of kids’ stationary juggernaut Smiggle back in September, while it explored the tie-up with Myer.
Premier shares touched a record high on the back of the news while shares of Australian listed Myer are up nearly 62% this year, as of last close.
Ansell shares (ASX: ANN) have surged to touch a near three-year peak after the medical equipments supplier revised its fiscal 2025 EPS guidance but warned higher inflation costs of key raw materials and higher freight costs could have a greater impact on the second half of FY25.
The stock is up nearly 25% YTD, as of last close.
A similar story for shares of Australian listed Zip Co (ASX: ZIP), soaring to a two and a half year high as the company posts a more than three-fold jump in quarterly cash EBITDA to AU$31.7 million, driven by a near 23% surge in total transaction volume in the period and a jump in first quarter revenue.
The stock is up a whopping 377.8%, year to date.
On the flip side, Bluescope Steel (ASX: BSL) shares have slumped, and on track for their worst day in more than 20 months after the company slashed its underlying earnings forecast for the first half due to a lacklustre global steel market.
Elsewhere, Australian listed shares of Resolute Mining (ASX: RSG) have fallen as much as 6% as the gold miner says 2024 group production is expected to be at or below the lower end of forecasts, while all in sustaining costs are expected to be at the upper end of the outlook.
The stock is up over 86% YTD, as of last close.
Going global
Rounding things out on the global stage, a roller coaster ride for Asian equities, as Japan’s Nikkei 225 recovers earlier losses to trade largely flat at midday. The rest of the region is mixed as the upcoming US Presidential election and key economic data keep traders on their toes.
On the currency front, the yen continues to languish near three-month lows after the loss of a parliamentary majority for Japan’s ruling coalition over the weekend, which has ignited uncertainty about the country’s political and monetary outlook.
The US dollar has eased a touch, but is hovering near recent highs, both the euro and sterling have edged higher, and the Australian dollar has touched its lowest level in over two months, breaking below key support of 66 US cents.
To the US, third quarter earnings continue to dominate with a long list of names due to report this week including, Alphabet, Microsoft, Facebook owner Meta Platforms, Apple and Amazon. The end of the week also sees the closely watched non-farm payrolls report for October. Forecasts are for around 123,000 jobs to have been created in the month, with the unemployment rate likely to hold steady at 4.1%.
Finally, the US election is looming large, with the latest Reuters/Ipsos poll showing Vice President Kamala Harris leading Republican candidate Donald Trump nationally by a marginal 46% to 43%.
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