Market Wraps

Morning Wrap: ASX 200 flat, S&P 500 snaps 8-day winning streak

Fri 10 Nov 23, 8:37am (AEDT)

ASX 200 futures are trading 5 points lower, down -0.07% as of 8:20 am AEST.

The S&P 500 fails to extend its winning streak to nine as Powell takes a hawkish stance at his International Monetary Fund speech, US 10-year yield stages a sizeable bounce from recent lows, AAII bullish sentiment spread surges and China slips back into negative inflation.

Let's dive in.

Overnight Summary

Fri 10 Nov 23, 8:28am (AEDT)

Name Value % Chg
Major Indices
S&P 500 4,347 -0.81%
Dow Jones 33,892 -0.65%
NASDAQ Comp 13,521 -0.94%
Russell 2000 1,686 -1.63%
Country Indices
Canada 19,587 +0.29%
China 3,053 +0.03%
Germany 15,353 +0.81%
Hong Kong 17,511 -0.33%
India 64,832 -0.22%
Japan 32,646 +1.49%
United Kingdom 7,456 +0.73%
Name Value % Chg
Commodities (USD)
Gold 1,962.7 +0.36%
Iron Ore 127.26 -
Copper 3.63 -0.25%
WTI Oil 75.61 -0.03%
Currency
AUD/USD 0.6366 -0.59%
Cryptocurrency
Bitcoin (AUD) 57,358 +2.62%
Ethereum (AUD) 3,196 +7.43%
Miscellaneous
US 10 Yr T-bond 4.63 +2.37%
VIX 15.42 +6.71%

US Sectors

Fri 10 Nov 23, 8:28am (AEDT)

SECTOR % CHG
Industrials -0.25%
Energy -0.27%
Communication Services -0.30%
Consumer Staples -0.40%
Information Technology -0.40%
Financials -0.41%
SECTOR % CHG
Materials -0.85%
Utilities -1.38%
Real Estate -1.51%
Consumer Discretionary -1.82%
Health Care -2.10%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 snaps win streak, closes near worst levels (Source: TradingView)

MARKETS

Another modified (aka shorter) Morning Wrap. Cool insights will be back next week!

  • S&P 500 snaps 8-day win streak, the best rally since 2021

  • A 9-day run for the S&P 500 has only happened 31 times in the last 95 years

  • US 10-year yield rallies 14 bps, marking a sizeable bounce from 4.5%

  • All S&P 500 sectors lower, led by growth and yield-sensitive sectors

  • Higher-for-longer Fed and yield bounce weighed on equities

  • Mega cap tech stocks are now outperforming small caps by the largest margin since the Dot Com Bubble

  • AAII sentiment spread marks largest week-over-week increase in bullish sentiment in its survey history, bearish sentiment below average for first time in eight weeks

  • Markets more focused on Treasury auctions as a potential driver of yields (Bloomberg)

  • Investors worry further declines in yields could keep Fed in a hawkish stance (Reuters)

  • Japanese investors bought most Treasuries in six months in September (Bloomberg)

  • China ask brokerages to restrict leverage for stock trades, sources say (Reuters)

  • IPO market unusually quiet in historically busy period of November (CNBC)

  • Bitcoin reached 18-month high of US$37,000 on regulatory optimism (Yahoo)

STOCKS

  • Meta CEO Mark Zuckerberg dumps US$35m worth of stock, first sale in two years

  • Disney streaming subscriber growth tops expectations, company plans to accelerate cost cutting (Bloomberg, Reuters)

  • Chinese local media says Nvidia plans to release three new chips (Reuters)

  • Affirm shares surge on quarterly earnings beat (Reuters)

CENTRAL BANKS

  • Fed's Bostic and Barkin says economy has yet to feel the full impact of hikes (Bloomberg)

  • BOJ tweaked YCC to maintain market functioning (Reuters)

  • BOJ Ueda says central bank will move carefully on raising interest rates (FT)

  • Former BOJ executive believes NIRP will end as early as January (Reuters)

  • ECB VP de Guindos says rate cut talk clearly premature (Bloomberg)

  • ECB's Villeroy says central bank done with rate hikes unless more shocks (Bloomberg)

  • Powell says inflation has given policymakers a few “head fakes” and that the Fed will not hesitate to hike further (CNBC)

  • Powell elaborates on the fed's current, conditional pause

GEOPOLITICS

  • Israeli troops in heart of Gaza City as G7 urges humanitarian pause (Reuters)

  • Blinken says Palestinian Authority should rule unified Gaza and West Bank (FT)

  • US fires upon weapons depot in Syria used by Iran, citing retaliation for attacks (Reuters)

  • Biden, Xi may resume of military-to-military communications to global stability (Axios)

  • Bipartisan group of US lawmakers want Biden administration to raise tariffs on Chinese-made vehicles (Reuters)

ECONOMY

  • China slips back into deflation on lower food prices and soft demand (Reuters)

  • Japan could give $13bn in aid for chips and generative AI in stimulus budget (Nikkei)

  • Japan's current account surplus tripled to record in H1 (Bloomberg)

Industry ETFs

Fri 10 Nov 23, 8:29am (AEDT)

Name Value % Chg
Commodities
Uranium 26.66 +2.30%
Silver 20.7 +0.24%
Copper Miners 32.01 +0.22%
Gold Miners 27.58 -0.40%
Steel 64.61 -0.43%
Strategic Metals 56.51 -1.21%
Lithium & Battery Tech 47.69 -1.77%
Industrials
Aerospace & Defense 112.83 +0.06%
Agriculture 22.138 -0.55%
Construction 52.1254 -0.90%
Global Jets 15.511 -2.14%
Healthcare
Biotechnology 114.98 -2.95%
Cannabis 5.44 -4.23%
Name Value % Chg
Cryptocurrency
Bitcoin 18.46 +2.50%
Renewables
Hydrogen 6.32 +1.12%
CleanTech 9.12 -1.41%
Solar 41.51 -2.42%
Technology
Video Games/eSports 54.12 +0.11%
Cybersecurity 24.17 +0.08%
Semiconductor 475.59 -0.48%
Robotics & AI 24.19 -0.49%
FinTech 19.76 -1.00%
Electric Vehicles 21.67 -1.46%
E-commerce 17.88 -1.65%
Cloud Computing 18.58 -1.69%
Sports Betting/Gaming 15.57 -2.77%

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: SSR Mining (SSR) – $0.08, Janus Henderson Group (JHG) – $0.6 

  • Dividends paid: Newmark Property REIT (NPR) – $0.01 

  • Listing: Great Dirt Resources (GR8) at 12:30 pm, Tolu Minerals (TOK) at 12:00 pm

Economic calendar (AEDT):

  • 11:30 am: RBA Statement of Monetary Policy

  • 6:00 pm: UK Q3 GDP

  • 11:30 pm: ECB President Lagarde Speech

  • 2:00 am: US Consumer Sentiment

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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