Australian shares are holding modestly higher in the opening hours of trading, with gains across much of the index offsetting more falls in commodity prices overnight.
S&P/ASX 200 is 20 points, or 0.2 per cent, higher to 7757 near 10am AEST, ahead of local GDP data at 11.30am AEST. US stocks closed modestly higher, recovering from early losses, as the latest jobs data, known as JOLTS, provided further evidence that the economy is losing momentum and keeping the door open for rate cuts.
Weakness in the commodity markets are dragging on the sharemarket after iron ore slid below $US108 a tonne in Singapore. BHP, Fortescue and Rio Tinto have all fallen around 1 per cent.
While there was no specific news, Bloomberg reported that commodities giant Cargill has ceased its steel trading business in mainland China, after years of struggling with slower activity amid the country’s property-led downturn.
Oil also extended its losses for another session after OPEC+’s shock decision over the weekend to taper production cuts. Energy stocks are 1.3 per cent lower.
Gains in real estate, health and consumer staples are offsetting the losses in energy and mining stocks.
The Australian Bureau of Statistics will release quarterly GDP figures late this morning, when most market watchers will be expecting a 0.2 per cent gain. Reserve Bank of Australia governor Michele Bullock is also appearing before the Senate.
Stocks in focus
Treasury Wine Estates is 4.4 per cent higher at $11.89 after it released an update after the market closed on Tuesday.
The Australian Information Commissioner has commenced civil penalty proceedings against Medibank in the Federal Court of Australia relating to the health insurer’s 2022 cyberattack. Shares in Medibank Private are 0.1 per cent lower at $3.75.
Biotech Immutep has dropped 6.7 per cent to 42¢, following a capital raise by the company earlier this week. Immutep raised $100.2 million at 38¢ per share, comprising an institutional offer of $89.6 million and retail entitlement offer of approximately $10.6 million.
Online job marketplace Seek has agreed to sell its majority stake in OCC Mexico and its 100 per cent interest in Catho Online, two Latin American employment markets. Shares are 3.1 per cent higher at $23.38.
Megaport has appointed current Altium board member Lauren Williams to its board of directors. Shares are 0.5 per cent higher at $13.15
Shares in Xero have been halted ahead of trading, after the business platform unveiled an $US850 million ($1.3 billion) convertible note offer after trading closed yesterday.
Read More: Shares tip higher ahead of GDP; commodities retreat, Medibank sued