Market Wraps

Morning Wrap: ASX 200 futures flat, S&P 500 hits fourth straight record close

Fri 14 Jun 24, 8:33am (AEST)

ASX 200 futures are trading 8 points lower, down -0.10% as of 8:30 am AEST.

The S&P 500 and Nasdaq had another record setting day after cooler-than-expected US producer price data and bumper earnings from Broadcom.

Let's dive in.

Overnight Summary

Fri 14 Jun 24, 8:22am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,434 +0.23%
Dow Jones 38,647 -0.17%
NASDAQ Comp 17,668 +0.34%
Russell 2000 2,039 -0.88%
Country Indices
Canada 21,698 -1.20%
China 3,029 -0.28%
Germany 18,266 -1.96%
Hong Kong 18,113 +0.97%
India 76,811 +0.27%
Japan 38,720 -0.40%
United Kingdom 8,164 -0.63%
Name Value % Chg
Commodities (USD)
Gold 2,318.0 -1.56%
Iron Ore 107.12 +0.66%
Copper 4.4815 -1.87%
WTI Oil 78.62 +0.15%
Currency
AUD/USD 0.6636 -0.42%
Cryptocurrency
Bitcoin (AUD) 100,842 -2.31%
Ethereum (AUD) 5,248 -2.34%
Miscellaneous
US 10 Yr T-bond 4.238 -1.33%
VIX 11.94 -0.83%

US Sectors

Fri 14 Jun 24, 8:22am (AEST)

SECTOR % CHG
Information Technology +1.36%
Real Estate +0.48%
Utilities +0.23%
Consumer Staples +0.11%
Materials -0.02%
Health Care -0.04%
SECTOR % CHG
Financials -0.20%
Consumer Discretionary -0.20%
Industrials -0.64%
Energy -0.89%
Communication Services -0.98%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 recovered from midday weakness to close near session highs (Source: TradingView)

OVERNIGHT MARKETS

  • US stocks finished mixed but not far off best levels after some midday weakness

  • Breadth remains a concern – Nasdaq 100 is up 3% so far this week and traded higher on all four trading days but breadth has been 50/50, according to Bespoke

  • Broadcom (+12.2%) is the latest AI bright spot after topping Q2 earnings expectations and upgrading its FY24 guidance – AI semiconductor revenue of US$3.1bn was up 35% quarter-on-quarter and 280% year-on-year

  • Market struggled for momentum despite more signs of disinflation momentum from cooler-than-expected US PPI data – poor breadth, cyclical underperformance and upcoming buyback blackout period remain the key areas of concern 

  • Bond yields down for a fourth straight session – the US 2-year closed at its lowest level since 5 April

  • Traders push up odds of September Fed rate cut following CPI report (Bloomberg)

  • Latest US inflation data could support stock market laggards (Reuters)

  • Private credit funds have raised over US$13bn in US investment grade corporate bond market this year, pacing toward record (Bloomberg)

STOCKS

  • Tesla extends gains after Musk says shareholders voting yes for his US$56bn pay package (Bloomberg)

  • Apple not paying OpenAI as part of partnership, sees mutual benefits derived from distribution (Bloomberg)

  • OpenAI has more than doubled annualized revenue in last six months (The Information)

CENTRAL BANKS

  • Fed now projects one rate cut in 2024 from three previously (Bloomberg)

  • Powell sends mixed interest rate signal (FT)

  • ECB's Nagel says core inflation "still very sticky", stresses meeting-by-meeting approach to cuts (Bloomberg)

  • BOJ to discuss tapering JGB purchases at Friday's meeting (Bloomberg)

GEOPOLITICS

  • G7 members reach deal to provide US$50bn to Ukraine using profits from frozen Russian assets (FT)

  • NATO says over 300,000 troops are now on 'high readiness' (Economic Times)

  • Hezbollah says it attacked nine Israeli sites with rockets, reportedly largest attack on Israel since war began (Reuters)

  • Biden administration extremely concerned about risk of all-out war between Israel and Hezbollah (Axios)

  • US expands Russia sanctions to undercut its war machine, targeting chips sent via China (Reuters)

  • China EV stocks shrug off EU tariff decision (Bloomberg)

ECONOMY

  • US PPI unexpected fell in May to 2.2% vs. consensus 2.5%, core PPI unchanged month-on-month vs. expectations for a 0.3% rise (Reuters)

  • Eurozone industrial production unexpectedly fell at the start of Q2, with intermediate goods driving decline (Bloomberg)

  • Australian unemployment rate falls, markets pare RBA rate cut expectations (Bloomberg)

Industry ETFs

Fri 14 Jun 24, 8:22am (AEST)

Name Value % Chg
Commodities
Uranium 29.94 +0.17%
Steel 66.31 -0.47%
Copper Miners 44.41 -1.73%
Silver 26.43 -2.22%
Lithium & Battery Tech 41.4 -2.24%
Gold Miners 33.15 -2.50%
Strategic Metals 46.52 -3.28%
Industrials
Agriculture 25.85 +0.39%
Construction 70.0 -0.14%
Aerospace & Defense 133.69 -0.86%
Global Jets 19.81 -1.10%
Healthcare
Biotechnology 137.33 -0.35%
Name Value % Chg
Cryptocurrency
Bitcoin 25.13 -1.41%
Renewables
CleanTech 9.42 -2.08%
Solar 47.12 -2.42%
Hydrogen 6.03 -2.58%
Technology
Semiconductor 252.95 +1.09%
Video Games/eSports 65.96 +0.09%
Robotics & AI 31.62 -0.63%
Sports Betting/Gaming 16.7601 -0.85%
Electric Vehicles 24.47 -1.29%
E-commerce 23.93 -1.36%
Cybersecurity 28.56 -1.59%
FinTech 25.2 -1.87%
Cloud Computing 19.26 -2.48%

ASX TODAY

  • ASX 200 set for a relatively flat start following a mixed overnight lead (where strength remains concentrated to a handful of megacap tech stocks)

  • Commodity prices were relatively weak overnight after the US dollar bounced 0.5% to a near six week high

  • Overnight resource-related ETFs (Rare earths, gold, silver, nickel, copper etc.) continued to roll over, pointing to a weak start for local names

  • Chemist Warehouse deal can still get past ACCC health check (AFR)

  • Deterra to buy UK-based Trident Royalties for $276m (DRR)

  • Downer EDI seeking to sell its 30% stake in Linen Services (AFR)

  • Winsome Resources seeking to raise $20m at 85 cents per share (AFR)

BROKER MOVES

  • Champion Iron upgraded to Buy from Outperform; target up to $7.90 from $7.20 (CLSA)

  • Corporate Travel upgraded to Buy from Hold; target down to $16 from $17.50 (Jefferies)

  • Jumbo Interactive upgraded to Outperform from Neutral; target up to $17.45 from $17.15 (Macquarie)

  • Lottery Corp upgraded to Outperform from Neutral; target up to $5.50 from $5.25 (Macquarie)

  • Reece Australia initiated Sell with $23.35 target price (Goldman Sachs)

  • Telix Pharmaceuticals upgraded to Buy from Hold; target remains $19 (Bell Potter)

Key Events

Companies trading ex-dividend: 

  • Fri 14 June: None

  • Mon 17 June: None

  • Tue 18 June: Premier Investments (PMV) – $0.63

  • Wed 19 June: Afp Pharmaceuticals (AFP) – $).01 

  • Thu 20 June: None

Other ASX corporate actions today: 

  • Dividends paid: Technology One (TNE) – $0.05, Nufarm (NUF) – $0.04 

  • Listing: Resouro Strategic Metals – 10:30 am AEST

Economic calendar (AEST):

  • 10:30 am: Australia Consumer Confidence (Jun)

  • 1:00 pm: BOJ Interest Rate Decision 

  • 12:00 am: US Consumer Sentiment (Jun)

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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