Morning Wrap: ASX 200 futures edge higher, S&P 500 snaps four-day losing streak

ASX 200 futures are trading 9 points higher, up 0.10%, as of 8:30 am AEDT.

Hi there – Kerry here. I'm back after a short break. US markets rebounded modestly as the S&P 500 snapped a four-day losing streak amid ongoing uncertainty around inflation, earnings and Trump policy, while key commodities like copper, gold and oil posted solid gains.

Let's dive in.

S&P 500 SESSION CHART

S&P 500 higher but off best levels (Source: TradingView)

OVERNIGHT MARKETS

• Major US benchmarks finished higher, off best levels but stabilising after last week’s selloff

• S&P 500 snaps four-day losing streak where it pulled back 2.2%

• Stocks trying to rebound amid uncertainty over Trump’s agenda, yields pushing higher (again), negative earnings revisions

• Morgan Stanley's Wilson sets 2025 S&P 500 price target of 6500, or 11% above Friday's close (BBG)

• ETFs that buy Chinese shares see continued heavy withdrawals as investors wait on Trump tariff, China stimulus impact (BBG)

• Goldman reiterates US$3,000 price target for gold in 2025 (BBG)

• Post-US election rally in stocks fading as investors contend with inflation worries, Trump policy agenda implications (RT)

• Bullish options start getting unwound as prospect of slower Fed interest-rate cuts have helped halt the stock rally (BBG)

• Greater China equities rebounded from last week's selloff as traders reassess an outlook for further stimulus (BBG)

• Sell-side firms cautious on China stocks as persistent deflationary pressures and geopolitical tensions cloud the outlook (BBG)

• Crude flips to contango for first time since February, suggesting looming global glut (BBG)

• Oil spikes as geopolitical tensions with Russia and Iran outweigh 2025 oversupply fears (BBG)

STOCKS

• Boeing to lay off nearly 2,200 workers in Washington state (RT)

• Nvidia teams up with Alphabet on Quantum AI computing (BBG)

• Spirit Airlines files for bankruptcy protection (RT)

• US retail earnings due this week will put the spotlight on their holiday period outlooks (BBG)

• Trump's potential tariffs add urgency for Hasbro to find new factories for toys and games (WSJ)

• Investors are rewarding oil giants like Exxon Mobil that did not embrace wind and solar (NYT)

• Trump's transition team plan to make a federal framework to ease rules for fully self-driving vehicles (BBG)

CENTRAL BANKS

• Ueda reiterates BOJ policy adjustments to continue as forecasts remain on track, keeps December rate hike on table (RT)

• RBA's Kent says central bank finds no evidence monetary policy is more potent in Australia than elsewhere (RT)

POLITICS & GEOPOLITICS

• Trump's Energy Secretary pick seen as elevating an ally of his oil donors, many of whom question climate change science (WSJ)

• Biden gives Ukraine the green light to strike Russia with US-made long-range missiles (AX)

• Trump's push for peace talks between Russia and Ukraine start to grow acceptance in Europe (WSJ)

• Xi sends message to Trump that China wants to be friends, but is ready for a fight if necessary (BBG)

• China to tighten export controls on key dual-use technologies, critical metals ahead of Trump's return (NIK)

ECONOMY

• Germany braces for second straight year of economic contraction (BBG)

• Japan machinery orders unexpectedly fall for third straight month (RT)

ASX TODAY

• Commonwealth Bank to assess whether to sell down stake in Klarna, analysts believe that potential Klarna IPO valuation of $20bn could value CBA's stake at around $1.8bn (The Aus)

• Newmont issues press release on sale of Musslewhite for up to US$850m, transaction to close in 1Q25, now Newmont will have surpassed its target of delivering more than US$2bn in gross proceeds from non-core divestitures (NEM)

• SRG Global awarded multiple contracts with existing clients across ANZ worth A$700m vs. $710m market cap (SRG)

• Xref major shareholder Harvest Lane Asset Management discloses 5.24% stake (XF1)

WHAT TO WATCH TODAY

• Gold – Gold prices snapped six-day losing streak and bounced almost 2% overnight to US$2,611 an ounce. The Gold Miners ETF (GDX) is trying to stabilise after an almost 20% drawdown since 22-Oct, up 4.2% overnight.

• Materials – Likewise, the resource sector is also trying to stabilise from a series of downward drivers like a strong US dollar, China stimulus disappointment etc. The S&P/ASX 200 Materials Index is on a two-day winning streak after falling as much as 10% between 30-Sep and 15-Nov.

BROKER MOVES

• Elders downgraded to Hold from Underperform; target cut to $9 from $9.45 (CLSA)

Stocks trading ex-dividend: 

• Tue 19 Nov: None

• Wed 20 Nov: Amcor (AMC) – 1.22%, Embark Early Education (EVO) – 1.88%, Infratil (IFT) – 0.50%, Wam Global (WGB) – 2.63%

• Thu 21 Nov: Terracom (TER) – 4.65%

• Fri 22 Nov: N1 Holdings (N1H) – 2.36%, Orica (ORI) – 1.51%, Wam Strategic Value (WAR) – 0.87%

Other ASX corporate actions today: 

• Dividends paid: Bank of Queensland (BOQ) 

• Listing: None

• Earnings: ALS (ALQ), Technology One (TNE)

• AGMs: Bluescope Steel (BSL), Monadelphous (MND), Omni Bridgeway (OBL), Ridley Corp (RIC), Seek (SEK), Sonic Healthcare (SHL)

Economic calendar (AEDT):

• 11:30 pm: Canada Inflation (Oct)

• 11:30 pm: US Building Permits (Oct)