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 21 September, 2023

Market woes continue to build as the Fed keep the door open for a potential additional quarter point increase this year.

What are your thoughts on technical analysis?

City Index Analysts now looking to crucial technical levels for the ASX 200 to hold. A failure to do so likely brings 7100 and 7000 handles into focus. 

COMMODITY/FOREX/CRYPTO MARKET PRICES

Gold: US$1,945.6 (+0.66%)
Silver: US$23.305 (-0.31%)
Nickel (3mth): US$19,936/t (-1.56%)
Copper (3mth): US$8,375/t (-0.55%)
Oil (WTI): US$91.20 (+0.57%)
Oil (Brent): US$94.27 (+0.14%)
Iron 62pc Fe: US$121.29/t (+0.6%)
AUD/USD: 0.6445 (+-0.02%)
Bitcoin: US$26,604.00 (+0.17%)

Across markets

Australian shares are poised to open lower, following the S&P 500’s reversal as the potential for another rate rise later this year and a delayed start to rate cuts in 2024 dented previous rate expectations.

US Treasury two-year yields climbed to the highest level since 2006. The 10-year yield topped 4.40 per cent late in New York’s day.

ASX futures were down 16 points or 0.2 per cent to 7155 near 7am AEST, after having been more than 20 points higher earlier.

“We’re not expecting miracles on the ASX 200 today, but given it fell three days leading into the [Fed] meeting … it may not be a complete disaster today either, said Matt Simpson, senior market analyst at City Index.

The key question is whether it can cling on to trend support from the March 2020 low, as failure to do so likely brings the 7100 and 7000 handles into focus.

  • On Wall St: Dow -0.2% S&P -0.9% Nasdaq -1.5%
  • In New York: BHP -0.6% Rio +0.2% Atlassian -2.2%
  • Tesla -1.5% Apple -2% Alphabet -3.1% NYSE Fang -2.1%
  • Klaviyo +9.2% Instacart -10.7% Arm Holdings -4.1%

In their statement at 4am AEST, Fed policymakers as expected said they voted to hold rates steady this month, though they kept the door open to a potential additional quarter point increase this year. They also tipped a slower shift to rate cuts in 2024.

In repeated language in their statement, the Fed’s Open Market Committee said officials will determine the “extent of additional policy firming that may be appropriate”.

The FOMC held its target range for the federal funds rate at 5.25 per cent to 5.5 per cent, while updated quarterly projections showed 12 of 19 officials favoured another rate hike in 2023, underscoring a desire to ensure inflation continues to decelerate.

Source: AFR

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Closer to Home
  • Alderan Resources (ASX:AL8) has acquired 100% ownership of seven lithium exploration projects from Parabolic Lithium, consisting of 24 granted exploration licences covering 472km2 in Brazil’s Eastern Lithium Belt.

    BPH Global (ASX:BP8) is acquiring Foshan Gedishi Biotechnology, which is set to commercialise its birds’ nest business following a successful pilot study with BP8’s China partners.

    Resource Base (ASX:RBX) has identified and mapped abundant pegmatitic outcrops over both the Wali and Ernst Lake projects within the prolific James Bay region in Québec, Canada.

    OzAurum Resources (ASX:OZM) has received firm commitments to raise $2.4m via a placement at $0.075 per share to commence exploration of its new Linopolis Jaime lithium project in Brazil.

    National Tyre & Wheel (ASX:NTD) subsidiaries have signed a deal with Goodyear and Dunlop Tyres (Australia) and Goodyear and Dunlop Tyres (New Zealand) for the wholesale distribution of Dunlop consumer and commercial tyres expected from in November 2023 in New Zealand and from April 2024 in Australia. 

Source: Stockhead


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