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Wall St opened the week with gains to close out a winning month across the major averages with the Dow adding 1.8% in September while the S&P 500 gained 2% and the Nasdaq added 2.7% over the September month of trading. The Dow Jones rose 0.04% to a fresh record high, while the S&P500 added 0.4% and the Nasdaq ended the day up 0.4%. The rally on Monday followed Fed Chair Jerome Powell’s press conference indicating the rate cuts will continue but likely not as aggressively as the US economy shows signs of resilience against easing inflation. Stellantis shares dropped 12.52% on Monday in the U.S. after the Jeep and RAM manufacturer lowered earnings guidance amid a worsening U.S. economy outlook. GM and Ford shares also fell on Monday.

In Europe overnight it was a sea of red across the region for the last trading day of September in a pullback from the records set in the region on Friday. The STOXX 600 lost 0.95%, Germany’s DAX fell 0.76%, the French CAC lost 2% and, in the UK, the FTSE100 ended the day down 1.01%.

Across the Asia region on Monday China’s record rally continued with stocks rallying to their best day in 16-years following stimulus measure announcements out of Beijing last week.

The Aussie market scaled 0.7% higher to a fresh record close on Monday as 9 of the 11 sectors ended the day higher led by energy stocks rallying on the rising price of oil amid fresh attacks from Israel on Lebanon.

Iron ore miners also felt some relief on Monday on the rising price of iron ore following a material stimulus package announced out of China last week to help reignite economic growth post pandemic. China’s manufacturing activity contracted sharply in September though amid subdued demand in the region while production expanded for an 11th straight month in September in China, but new orders fell.

Liontown Resources rallied on Monday after the lithium miner completed its first shipment of lithium spodumene concentrate to China and spot sales starting from its flagship mine in WA.

What to watch today:

• Ahead of Tuesday’s trading session on the ASX, the SPI futures are anticipating the local market will commence the first trading session of October down 0.4%.
• On the commodities front this morning, oil is up 0.2% at US$68.30/barrel, gold is down almost 1% at US$2634/ounce and iron ore is up 0.5% at US$92.98/tonne.
• The Aussie dollar has strengthened again overnight to buy US$0.69, 99.33 Japanese Yen, 51.65 British Pence and NZ$1.09.

Trading Ideas:

• Bell Potter has decreased the 12-month price target on Synlait Milk (ASX:SM1) from 47cps to 42.5cps and maintain a hold rating on the milk processing company following the release of the company’s FY24 results including adjusted EBITDA consistent with expectations and previous guidance. Sales rose 2% in FY24, and no guidance was issued. Bell Potter maintains a hold rating on the company as the outlook remains uncertain for Synlait Milk given its reliance on retaining milk supply post FY26 and convincing farmers to withdraw cessation notices.
• And Trading Central has identified a bullish signal on KMD Brands (ASX:KMD) following the formation of a pattern over a period of 20-days which is roughly the same amount of time the share price may rise from the close of 47cps to the range of 57 cents to 59 cents according to standard principles of technical analysis.