ASX pre-market wrap: US stocks falter as omicron fears escalate
Major US indices closed sharply lower as covid cases surge around the world.
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ASX SPI futures is currently pointing to a 3 point fall, down 0.04% to 7,192.
US stocks fell overnight as covid cases continue to surge globally. Stocks tied in with the economy fell the most including financials, materials and industrials.
LIVE DATA USED: Data shown in article tables is live and may not match data quoted in article at time of publication.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
US Indices | ||
 S&P 500 | 4,649 | +1.78% |
Dow Jones | 35,493 | +1.60% |
NASDAQ 100 | 15,341 | +2.40% |
Russell 2000 | 2,203 | +2.95% |
Country Indices | ||
 Canada | 0 | 0.00% |
 China | 0 | 0.00% |
 Germany | 15,447 | +1.36% |
 Hong Kong | 0 | 0.00% |
 India | 0 | 0.00% |
 Japan | 0 | 0.00% |
 United Kingdom | 0 | 0.00% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 1,801.6 | +0.77% |
 Iron Ore | 112.54 | -0.97% |
 Copper | 4.3895 | +1.19% |
 WTI Oil | 72.76 | +2.31% |
Currency | ||
 AUD/USD | 0.7153 | +0.54% |
Cryptocurrency | ||
 Bitcoin | 0 | 0.00% |
 Ethereum | 0 | 0.00% |
Miscellaneous | ||
U.S. 10 Year Treasury | 1.487 | +4.79% |
VIX | 21.01 | -8.13% |
Major US averages closed sharply lower overnight, with the Dow Jones down by more than 400 points for a second consecutive session. Investors continued to worry about the resurgence of covid cases and its implications for the global economy.
The World Health Organisation said last Friday that there is “consistent evidence that Omicron has a substantial growth advantage over Delta.”
“It is spreading significantly faster than the Delta variant in countries with documented community transmission, with a doubling time between 1.5–3 days,” the report said, adding that “... it is likely that Omicron will outpace Delta where community transmission occurs.”
US Sectors
Sector | % Chg |
|---|---|
| Communication Services | 0.00% |
| Consumer Discretionary | 0.00% |
| Consumer Staples | 0.00% |
| Energy | 0.00% |
| Financials | 0.00% |
| Health Care | 0.00% |
Sector | % Chg |
|---|---|
| Industrials | 0.00% |
| Information Technology | 0.00% |
| Materials | 0.00% |
| Real Estate | 0.00% |
| Utilities | 0.00% |
Sectors tied in with the economy fell the most, led by sharp declines in financials, materials, industrials and energy.
Financials were in the deep red with Wells Fargo down 2.3% to a 2-month low, Citi sliding 2.1% to a 9-month low and Bank of America closing 1.6% lower.
Material stocks were also long, but as far as the ASX is concerned, the US-listed counterparts of BHP Group (ASX: BHP) and Rio Tinto (ASX: RIO) held up relatively well, down just 0.1% and 0.9% respectively.
Technology stocks continued to falter with mega cap names including Tesla sliding 3.5%, Facebook down 2.5% and Amazon closing 1.7% lower.
Industry ETFs
Name | Value | % Chg |
|---|---|---|
Commodities | ||
| Uranium | 24.41 | +6.13% |
| Aluminum | 58.01 | +3.88% |
| Copper Miners | 35.76 | +2.88% |
| Steel | 52.05 | +2.24% |
| Nickel | 25.81 | +1.89% |
| Lithium & Battery Tech | 82.26 | +1.34% |
| Strategic Metals | 104.65 | +1.22% |
| Silver | 20.77 | +0.97% |
| Gold | 167.02 | -0.04% |
Industrials | ||
| Global Jets | 21.04 | +5.25% |
| Aerospace & Defense | 100.72 | +3.79% |
Healthcare | ||
| Cannabis | 6.39 | +2.73% |
| Biotechnology | 153.95 | +0.61% |
Name | Value | % Chg |
|---|---|---|
Cryptocurrency | ||
| Bitcoin | 30.84 | +3.56% |
Renewables | ||
| Solar | 77.94 | +5.67% |
| CleanTech | 17.69 | +4.86% |
| Hydrogen | 20.62 | +3.41% |
Technology | ||
| Sports Betting/Gaming | 24.22 | +4.58% |
| FinTech | 42.07 | +4.42% |
| Video Games/eSports | 66.66 | +4.38% |
| E-commerce | 27.23 | +4.17% |
| Semiconductor | 530.12 | +3.61% |
| Cloud Computing | 27.35 | +3.30% |
| Robotics & AI | 35.69 | +2.91% |
| Cybersecurity | 31.67 | +2.23% |
| Electric Vehicles | 0.0 | 0.00% |
ASX Sectors to watch
ETF LOSERS
The Lithium & Battery Tech ETF plunged 5.3% on heavy volumes with 1.87m shares traded compared to a 20-day average of 1.2m.
ASX lithium shares have been holding up relatively well amid recent market volatility. Large cap players like Pilbara Minerals (ASX: PLS) pushed to an all-time high on Monday, while Allkem (ASX: AKE) continues to trade in a range bound fashion
The overnight move could flag headwinds for the bullish sector
Likewise, the Rare Earth/Strategic Metals ETF dipped to a 2-month low. The ETF’s largest holding, China’s Ganfeng Lithium plunged 8.5% to a 5-month low.
This could serve as a major blow for the bullish lithium and rare earth space
Leading ASX names like Lynas Rare Earths (ASX: LYC) and Australian Strategic Metals (ASX: ASM) could suffer on Tuesday
The Hydrogen ETF hit a fresh all-time low overnight. Its major constituents Plug Power, Bloom Energy and Ballard Power Systems all fell more than 6% as investors continue to flee from risky investments.
This could flag more negative flow for beaten names like Hazer Group (ASX: HZR), Lion Energy (ASX: LIO) and Pure Hydrogen (ASX: PH2)
The Steel ETF fell 3.4% to a 9-month low. China’s debt-ridden property sector has had major repercussions for steel demand.
“We normally stockpile steel products in winter at relatively lower prices and sell them after the new year holidays when consumption resumes. But we are holding off this year,” a Beijing-based steel trader told Reuters.
Last week, major US steelmaker Nucor, issued a profit warning amid “lower volumes caused by year-end seasonality.”
The sudden reversal could flag weakness for ASX steel plays like BlueScope Steel (ASX: BSL)
The FinTech ETF hit a 13-month low overnight, weighed down by a 5.2% decline in Block (formerly Square).
ASX companies like Xero (ASX: XRO), EML Payments (ASX: EML) and Tyro Payments (ASX: TYR) could be at risk
Afterpay (ASX: APT) is expected to log a sharp decline, given its Block takeover
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