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The Wall Street post-election rally took a breather on Tuesday from the record highs set across the major averages in recent sessions. The Dow Jones fell 0.86%, the S&P500 lost 0.3%, and the Nasdaq ended the day down 0.09%. Treasury yields also climbed on Tuesday with the 10-year adding around 10 basis points which also weighs on investor appetite for equities.

In Europe overnight, markets closed lower in the region as investors digested what the Trump White House could mean for the eurozone economy. The STOXX 600 fell 2.01% as mining stocks led the losses, while Germany’s DAX fell 2.13%, the French CAC lost 2.7% and, in the UK, the FTSE100 ended the day down 1.22%.

Across the Asia markets on Tuesday, it was a sea of red to end the trading day as investors assessed key economic data out in the region including retail sales and business confidence data. Japan’s Nikkei fell 0.4% on Tuesday, China’s CSI index lost 1.1%, Hong Kong’s Hang Seng tumbled 2.84% and South Korea’s Kospi Index ended the day down 1.94%.

The local market started the week lower as miners weighed on the local index amid weakened commodity prices across the board on China’s lacklustre stimulus and demand outlook. The ASX closed 0.13% lower on Tuesday as a sharp selloff in materials and energy stocks offset a near 1.4% rally among tech stocks.

Uranium miner Paladin Energy tanked over 20% on Tuesday after the company cut its production guidance for FY25 at its Langer Heinrich Mine in Namibia amid ongoing challenges and operational variability to date that is impacting the ramp up in production at the mine. The new FY25 production guidance from the Langer Heinrich Mine is expected between 3-6m pounds of uranium, below the previously issued guidance of 4-4.5m pounds and management withdrew all other guidance for FY25.

A boom in New Zealand-based claims for insurer NIB is expected to hit profits for the first half, as NIB said ‘extraordinary growth in NZ claims’ would result in an operating loss in the first half of around $10m. Shares in NIB fell 0.7% on Tuesday.

Westpac Consumer Confidence for November and NAB Business confidence for October were released yesterday with both strongly beating economists’ forecasts. Consumer confidence decreased slightly to 5.3% from 6.2% in October but this was well above the forecast of a decline to minus 0.8%, while business confidence rose to 5 points in October from minus 2 points in September and beat the market expectations of a rise to 2 points. Easing inflation was the driver of the boost in confidence readings.

What to watch today:

• Ahead of the midweek session here in Australia the SPI futures are anticipating the ASX to open the day down 0.98% on the back of the global market sell off on Tuesday.
• On the commodities front this morning, oil is trading 0.39% higher at US$68.31/barrel gold is down 1.11% at US$2595/ounce and iron ore is down 0.7% at US$103.10/tonne.
• The Aussie dollar has weakened against the greenback to buy US$0.65, 100.92 Japanese Yen, 51.10 British Pence and NZ$1.10.

Trading Ideas:

• Bell Potter has initiated coverage of Woolworths with a hold and a 12-month price target of $31.75. The analyst says the recent share price correction follows the commencement of legal action by the ACCC and softer 1H25 guidance.
• And Bell Potter has initiated coverage of Perenti (ASX:PRN) with a buy rating and a 12-month price target of $1.47 with the analyst noting shares should appeal to investors as they trade 6x under FY25 EPS, offer high cash generation, a discount NTA of $1.26/share and offer a 6% yield with an approx. 3% buyback planned. The buy is also supported by higher mining and drilling demand for gold in Australia and Africa.