Market Highlights: ASX set to smash record after iron ore surge; and more million dollar suburbs emerge

The ASX could hit a record high due after iron ore prices surge, while more Aussie suburbs are joining the million-dollar club.

Australia's housing market hits milestone with rising million-dollar suburbs. Pic via Getty Images

• ASX poised for record high after New York rally

• BHP and Rio Tinto shares rise as iron ore prices bounce back

• Australia's housing market hits milestone with rising million-dollar suburbs

The ASX could hit a record high again on Friday after a rally in New York. At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.2%.

Overnight, the S&P 500 cliched its 42nd fresh record this year, up by 0.40%, the blue chips Dow Jones index rose by 0.62%,and the tech heavy Nasdaq lifted by 0.60%.

Iron ore stocks will be on watch today after NYSE-listed shares of BHP and Rio Tinto climbed around 5% as iron ore prices surged back over $US100 a tonne in Singapore yesterday.

This comes as China’s top brass are making big moves to breathe life into the country’s struggling economy – promising to boost fiscal spending, tackle the property crisis and back the stock market.

Meanwhile, the latest update from the US shows that Q2 GDP growth of 3% surpassed Wall Street's predictions, and weekly jobless claims dropped to their lowest in four months.

All eyes are now on tonight’s Personal Consumption Expenditures (PCE) index, which is the inflation gauge favoured and watched closely by the Fed.

In more stocks news, chipmakers rose across the board after Micron Technology saw its shares jump 14% after posting earnings that beat estimates and unveiling a strong revenue forecast fuelled by demand for AI.

Chinese-tied US equities soared again, with the KraneShares CSI China Internet ETF rallying by more than 11%.

Meanwhile, Super Micro plummeted over 13%, and trading was briefly paused due to volatility.

This came after the Wall Street Journal reported that the Justice Department is investigating the company, known for its data centre servers, following a report from short seller Hindenburg Research in August. The report claimed there was an “accounting manipulation” at the AI-focused firm.

In other markets, oil prices tanked over 3% after the Financial Times reported that Saudi Arabia plans to start easing voluntary production cuts from December 1.

And, copper prices jumped more than 2% to a three-month high on the London Metal Exchange last night, on the back of China’s stimulus news.

Record number of $1m+ suburbs

Australia’s housing market is booming, with a record number of suburbs now valued at over $1 million.

In August, 29.3% of the 4,772 suburbs surveyed by CoreLogic hit this milestone, up from 21.7% earlier this year. This marks a significant jump from just 14.3% at the start of Covid.

Sydney remains the leader with 448 house markets and 107 unit markets in the million-dollar club, while Brisbane saw a big increase as well.

Meanwhile, Melbourne and regional Victoria have struggled, with property values declining.

Despite the rise in million-dollar markets, affordability is a growing concern, as buyers are now dedicating more of their income to mortgage repayments.

“With an $800,000 loan balance (assuming a 20% deposit) and the current average variable mortgage rate for new owner-occupiers (6.28%), a household would need an annual income close to $200,000 to keep repayments on a $1 million home under 30% of their income,” wrote CoreLogic’s Kaytlin Ezzy.

“This marks an increase from around the $125,000 needed prior to the first interest rate hike,” Ezzy noted.

In other markets …

Gold price rose by 0.6% to US$2,672.58 an ounce.

Oil prices fell 3%, with Brent crude now trading at US$71.60 a barrel.

The benchmark 10-year US Treasury yield rose by 1 basis point (bond prices lower) at 3.80%.

Bitcoin was up 2.5% in the last 24 hours to US$65,163, and Ethereum climbed by 2.5% to US$2,638.

Meanwhile, iron ore surged by 4% to $US100.30 a tonne on the back of China’s stimulus news.

5 ASX small caps to watch today

Encounter Resources (ASX:ENR)
Encounter has reported significant developments at the Jessica and Carrara copper projects in the Northern Territory. Following 7,200 metres of diamond drilling in 2023, South32 has opted to prioritise exploration at the Jessica project, adding an extra 811 square kilometres to the Farm-in Agreement. As a result, Encounter has regained full control of the Carrara project. A 2,500-metre diamond drilling programme is scheduled to begin at Jessica in October, targeting new areas identified through reprocessed seismic data. The initial drilling at the Zeta target revealed promising mineralisation, and further surveys are planned to enhance exploration efforts

Raiden Resources (ASX:RDN)
Raiden has completed a preliminary structural analysis of the Andover South Lithium Project in the Pilbara region. This assessment involved detailed evaluation of magnetic survey data, revealing that mineralisation is primarily found within the ultramafic units of the Andover Complex, specifically in a well-defined north-east trending structural corridor. The next steps will involve refining the geological boundaries of the project area, and identifying potential blind targets under sediment cover based on the magnetic data. Drilling is set to commence over the weekend, with a formal update expected on Monday.

Moho Resources (ASX:MOH)
Moho has completed a soil sampling survey across the Weld Range project to investigate previously identified gravity and magnetic features that may indicate a mafic-ultramafic intrusion, which could be prospective for copper-nickel sulphide and gold mineralisation. Assay results are expected in the fourth quarter of 2024. Additionally, Moho is assessing the mineral potential at its Black Swan South project and conducting a comprehensive review of its existing projects while exploring new acquisition opportunities.

Black Canyon (ASX:BCA)
BCA has discovered high-grade manganese at the W2 prospect in Wandanya, located 80 km south of the Woodie Woodie Mine. Drilling results from portable XRF analysis show manganese grades ranging from 15% to 55%. This mineralisation is interpreted as fault-related hydrothermal enrichment, which offers a new exploration model on the eastern margin of the Oakover Basin. The company has identified 1.75 km of intermittent high-grade outcropping manganese along strike, suggesting further potential for additional deposits. Laboratory assay results for selected drill holes are expected soon to confirm the XRF findings.

American West Metals (ASX:AW1)
Recent drilling at the Storm Project in Canada has revealed significant copper intersections, confirming the potential for resource expansion beyond the Cyclone Deposit. Notable results include a drill hole that intersected 53.3 metres at 3.9% copper, with a highlight of 22.9 metres at 8.5% copper. Other drill holes also returned promising intervals, indicating strong mineralisation in the area. The recent sealift operation successfully delivered supplies for the 2025 exploration and development programs, saving around $4 million in budget costs.

At Stockhead we tell it like it is. While Raiden Resources and American West Metals are Stockhead advertisers, they did not sponsor this article.

Originally published as Market Highlights: ASX set to smash record after iron ore surge; and more million dollar suburbs emerge