Starting in the US, Wall St maintained its rally as investors’ optimism for a further rate cut in December continues to grow. It is estimated that there is now around an 80% chance of a rate cut in December, sparking hopes for a continued rally into the final month of the year. The Dow Jones gained 1.43%, the S&P500 gained 0.94%, while the Nasdaq posted a 0.67% gain, as an all time high for Google parent company Alphabet was offset by a 2.6% drop for Nvidia. Europe and Asia saw similar rallies, breaking the...
Starting in the US, Wall St maintained its rally as investors’ optimism for a further rate cut in December continues to grow. It is estimated that there is now around an 80% chance of a rate cut in December, sparking hopes for a continued rally into the final month of the year. The Dow Jones gained 1.43%, the S&P500 gained 0.94%, while the Nasdaq posted a 0.67% gain, as an all time high for Google parent company Alphabet was offset by a 2.6% drop for Nvidia.
Europe and Asia saw similar rallies, breaking the previous trends of volatility with a sea of green across the major indexes. In Europe, the UK’s FTSE, German DAX and French CAC posted gains of 0.78%, 0.97% and 0.83% - all contributing to the pan-European Stoxx 600 advancing 0.91%. And in Asia, the Chinese CSI advanced 0.95%, Hong Kong’s Hang Seng advanced 0.69%, while the Japanese Nikkei edged 0.07% higher.
Back locally, the ASX ended Tuesday’s trading session 0.14% in the green, with 5 of the 11 key sectors posting gains. Materials were the biggest winner, mainly driven by gold miners and iron ore producers which saw solid gains on the day. Some notable stocks include Northern Star (ASX:NST) which gained 1.98%, Newmont Corporation (ASX:NEM), which jumped 4.63% and Fortescue (ASX:FMG), which gained 2.74%. On the other end, it was another tough day for financials as the big banks saw losses extended – lead by CommBank (ASX:CBA) slipping 1.17%.
In other stock news, DroneShield (ASX:DRO) ended its torrid run of late with a 14.61% surge on the day, after the company announced a new $5.2 million contract to supply an unnamed European military.
What to watch today:
- Looking ahead, the SPI futures indicate the ASX will follow Wall St, predicting a 1.13% rise at the open of trade today.
- Investors can also expect the release of the monthly CPI data at 11:30am Sydney time, which will provide further insight into the state of the Australian economy and may impact the share market.
- Moving over to commodities:
- Crude Oil has continued to slip with a further 1.43% decline in the price to US$58 per barrel, mainly driven by continuing uncertainty on the outcome of peace talks in the Russia-Ukraine conflict.
- Precious metals saw a stable day in terms of price, as Gold and Silver are both trading nearly flat at US$4130 and US$51.37 per ounce respectively.
- And it was a similar story for Iron Ore, which remains flat at US$104.50 per tonne.
Trading Ideas:
- Finally, we’ll end on some trading ideas for your consideration today. Bell Potter has maintained its Buy rating on electrical equipment provider IPD Group (ASX:IPG), after the company reported Q1 and Q2 FY2026 EBITDA and EBIT guidance exceeding consensus expectations, indicating a solid upwards trajectory.
- And Trading Central have identified a bullish signal in gold miner Ramelius Resources (ASX:RMS), indicating that the stock price may rise from the close of $3.56 to the range of $4.40 to $4.70 over a period of 27 days, according to the standard principles of technical analysis.
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