The local market managed a positive start to the week with both the S&P/ASX 200 (INDEXASX: XJO) and All Ordinaries (INDEXASX: XAO) gaining 0.1% on the back of strength in the energy sector.
Another rally in the oil price, which sent Brent crude beyond US$81 per barrel, supported both Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) to more than 1% gains, and the sector 1.3% higher.
Santos share price
Discretionary and financial stocks also benefited, up 0.6%, as Domino’s Pizza Enterprises Ltd (ASX: DMP) jumped 2.8% following its AGM.
Sticking with the energy sector, Karoon Energy Ltd (ASX: KAR) gained 3.4% after the company confirmed it had completed a discounted capital raising to fund the purchase of assets in the Gulf of Mexico.
Pathology provider Healius Ltd (ASX: HLS) which has seen buying interest from Australian Clinical Labs is also in the process of a capital raising to support a recapitalisation as lending covenants become stretched following a difficult 12 months.
ASX announces CHESS partner: Accent hit on slowing sales
The ASX Ltd (ASX: ASX) rallied on Monday, adding 1.2% after ASX provided another update regarding the replacement of the 29 year old CHESS replacement program. ASX announced they had partnered with global consulting firm, Tata Consultancy Services Ltd (NSE: TCS), to design the new system, but warned it will take an extended period of time.
ASX share price
Accent Group Ltd (ASX: AX1) fell by more than 8.5%, following a 10% fall last week, as sales growth continued to slow. Total retail sales were 2.1% for the year to date, however, same store sales across The Athlete’s Foot and Glue Store, declined by a similar amount.
Accent was more concerned about wholesale sales, being distribution to other retailers, which continue to slow. Despite this management announced they intend to open another 70 stores, including the Stylerunner and Skechers brands in the half.
US markets bounce out of correction: NVIDIA earnings ahead
US markets have officially rebounded out of a ‘technical correction’ recovering the 10 per cent of lost ground with a 0.7% surge in the Dow Jones Industrial Average (INDEXDJX: .DJI) to begin the week.
The S&P 500 (INDEXSP: .INX) and Nasdaq Composite (INDEXNASDAQ: .IXIC) were up 0.8% and 1.2% respectively, taking the three week rally to 9.6%.
The strength comes on the back of signs of a slowing domestic economy which is boosting hopes that rate cuts may lie ahead in 2024 sending bond yields from over 5% to 4.5% this week.
NVIDIA Corp (NASDAQ: NVDA) is set to release earnings on Wednesday morning and bounced 2% overnight, as did Microsoft Corp (NASDAQ: MSFT) after the company announced it was hiring OpenAI CEO Sam Altman to run it’s own internal division.
