US Consumer Confidence Plummets, Tech Stocks Slide, and Aussie Shares Set to Open Lower
US consumer confidence took a significant hit in September, leading to a broader selloff in tech stocks and setting the stage for lower opening for Australian shares. The ASX 200 index futures were down by -0.3% at 8am AEST, indicating a downward trend.
On Wall Street, the S&P 500 fell by -1.47%, the Dow Jones index was down by -1.14%, and the Nasdaq experienced a significant decline of -1.57%. The decline in sentiment was attributed to a heavy fall in US consumer confidence, which dropped from 108.7 in August to 103 in September. This decline reflects growing anxiety among Americans about the future.
The market is in the hands of the bears right now, warned Quincy Krosby, chief global strategist of LPL Financial.
Tech giants Apple and Microsoft both witnessed a decrease of more than 2%, whereas Amazon experienced a notable slip of 4% after being sued by the Federal Trade Commission (FTC) for antitrust violations. Additionally, retail company Target announced the closure of nine stores across the US due to a retail theft problem, causing its stocks to fall -2.5%.
Amidst the market turmoil, EV maker Rivian saw a 5% increase in its stocks after an analyst projected an upside potential to US$30 per share. This positive development offers a glimmer of hope amidst the overall decline.
Meanwhile, in Australia, the Australian Bureau of Statistics (ABS) is set to release the August Consumer Price Index (CPI) data at 11.30am AEST. Experts predict that August CPI is likely to re-accelerate for the first time in seven months, mainly driven by fuel prices. Rent inflation is also expected to persist, contributing to overall inflation.
Beyond the global market scenario, several Australian companies made recent announcements impacting their respective sectors. NOVONIX revealed that its Battery Technology Solutions division in Canada will receive up to CAD$3 million in research and development (R&D) funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). This funding will be dedicated to advancing battery materials and technology projects.
Mining company Red Hill Minerals reported assay results from a drilling program at the Barkley Gold and VTEM targets, with some notable gold yields from specific holes.
South Harz Potash provided an update on the progress of its Pre-Feasibility Study (PFS) for the Ohmgebirge Potash Project in Germany. The project is progressing well, with potential advantages in time and capital cost through the utilization of existing regional shaft infrastructure. The final PFS report is slated for completion in December.
Lastly, Magnetite Mines recently proposed accessing a discarded Murray Basin wastewater source for use in magnetite processing. The company aims to supply its planned 5Mtpa operations at the Razorback Iron Ore Project. This proposal has been approved for an exclusive six-month negotiation period by the South Australian Government.
Additionally, Flynn Gold has commenced drilling at the Warrentinna Project in NE Tasmania to explore a high-grade, near-surface gold target zone identified through historical drill results.
As the market anticipates the opening of Australian shares, investors remain cautious due to the decline in US consumer confidence and the subsequent slide in tech stocks. However, positive developments in individual companies and the upcoming CPI data release provide a mix of hope and uncertainty for the future of the market.
Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Investors are advised to conduct thorough research and exercise caution when making investment decisions.
