The ASX200 is expected to fall 2.18% on Friday, pushed down by weak performances on US markets responding to concerning economic data there.
All three major US stocks fell overnight – erasing previous gains – as manufacturing and employment data both suggested the American economy might be in worse shape than previously thought.
The S&P 500 fell 1.4%, the Nasdaq dropped 2.3%, and the Dow Jones reduced by 500 points.
The US manufacturing sector contracted more than expected – marking the deepest decline in eight months – according to the ISM Manufacturing PMI, while employment levels fell to 2020 lows. Initial jobless claims rose to 249K, the highest in a year, and labour costs grew at half the market’s predicted rate for Q2, despite productivity improvements.
Investors were also considering the possibility of a September rate cut by the Federal Reserve, with this being hinted earlier on in the week.
Meta shares rose 4.8% after posting better-than-expected second-quarter results and optimistic guidance, while Qualcomm dropped 9.4% influenced by warnings about trade restrictions. Nvidia also showed a weak performance, losing 6.7%. Apple, Amazon, and Intel are set to report their quarterly results today after the market closes.
Over on the ASX, Westgold Resources Ltd (ASX:WGX) and Karora Resources Inc have completed a merger which will see creation of a mid-tier gold company listed dually in Australia and the Toronto Stock Exchange.
Westgold has argued that the resulting entity will become one of the largest unhedged Australian gold producers, and one of the top five producers overall (producing more than 400,000 ounces per year), in addition to having pro forma market capitalisation of A$2.5 billion.
GreenX Metals Ltd (ASX: GRX) is set to acquire a large-scale copper project in Germany.
Located in the central German state of Hesse, the Tannenberg exploration licence covers land which is highly prospective for sediment-hosted (Kupferschiefer type) copper deposits, and the historic Richelsdorf copper-silver mines, which closed in the 1950s.
And medical device manufacturer ResMed Inc (ASX:RMD) reported 9% revenue growth (to $1.2 billion) year-on-year, as well as a 38% rise in operating profit, as part of its results for the fourth quarter of the 2024 Financial Year.
In forex, the Aussie is buying 64.9 US cents.
In commodities, brent crude fell nearly one percent to US$79.95, while iron ore was down almost a third of a percent to US$105.94 per tonne at Singapore.
Gold saw almost no rise, reaching US$2,444 per ounce while US natgas futures registered a fall of more than three percent to US$1.98 per gigajoule.