Morning Wrap: ASX 200 futures slip, Alphabet gains lift S&P 500 + Charts of the Week

ASX 200 futures are trading 15 points lower, down -0.21% as of 8:30 am AEDT.

The S&P 500 and Nasdaq rallied to recoup losses from the previous session, Alphabet shares rally 5.3% after the company introduced its most advanced AI model, traders are rapidly increasing bets that the Bank of Japan will scrap the world's last negative interest-rate regime as soon as this month and Charts of the Week.

Let's dive in.

S&P 500 SESSION CHART

S&P 500 gaps up and finished near best levels (Source: TradingView)

MARKETS

• S&P 500 gaps up and finished near best levels, recouped Wednesday's weakness

• Relatively uneventful session, Alphabet's ~5% rally pushed major benchmarks higher

• US Dollar Index eased on yen strength, with a ramp in BoJ NIRP (Negative Interest Rate Policy) exit speculation

• Copper breaks three-day losing streak where it dropped 5%

• S&P Equal Weight Index outperformed the cap-weighted Index last month as rally broadens (Bloomberg)

• November rally has Wall Street analysts on track for their most accurate year in more than a decade (Bloomberg)

• US recession conundrum causes chaos for market and currency bets in 2024 (Reuters)

• Global small-cap stocks drawing in bargain hunters on rate cut hopes (Reuters)

• OPEC output fell 900,000 bpd from October, first decline since July (Reuters)

• Wheat futures on track for longest rally in a decade amid war in Ukraine (Bloomberg)

• US gas prices expected to fall even further as futures sink to two-year low (Bloomberg)

STOCKS

• SpaceX kicks off talks on offer that values company at ~$175bn (Bloomberg)

• Alphabet shares rally more than 5% on Gemini AI model announcement (Reuters) 

• PayPal shares fall after Amazon announces it will no longer accept Venmo (CNBC)

• Boeing to ramp up 737 production plans 2 months slower than anticipated (Reuters)

• AMD shares rally after unveiling its new AI chips poised to challenge Nvidia (Reuters)

CENTRAL BANKS

• BOJ Governor Ueda flags different options for rates amid NIRP exit (Reuters)

• Demand for Fed's Standing Repo Facility highest since March 2020 (Bloomberg)

• ECB's Lagarde challenged as markets boost 2024 rate-cut bets (Bloomberg)

• Sell-side split on when BoE will start cutting rates (Reuters)

GEOPOLITICS

• Israel approves increasing amount of fuel allowed into Gaza (Axios, FT)

• EU to press Beijing on industrial overcapacity at China-EU summit (FT)

• Italy informs China that it will exit Belt and Road investment pact (Bloomberg)

CHINA

• China exports jump on year-end demand but imports contract (Bloomberg)

• Moody's follows up with more China outlook downgrades (Reuters)

• Chinese car manufacturers race to build own semiconductor supply chains (Nikkei)

ECONOMY

• Eurozone recession risks growth with major industrials falter in November (Bloomberg)

• US labor market steadily slowing, initial jobless claims rise (Reuters)

• German industrial output falls unexpectedly in October (Reuters)

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Charts of the Week

This segment of the Morning Wrap brings you weekly technical commentary on the ASX 200 and some of the more interesting charts in the market. These are not meant as recommendations. They are for illustrative purposes only. Any discussion of past performance is for educational purposes only. Past performance is not a reliable indicator of future return. Always do your own research.

ASX 200 – Gaining momentum?

ASX 200 daily chart (Source: Commsec)

The monster session a couple of days ago – the best in more than a year – saw the index break sharply above the 7125 resistance region from last week. The price action also topped out at 7194, just shy of the 7200 level identified. That is the next hurdle for the bulls and with solid leads from the overnight session, perhaps the bulls will claim it today. 7335 is the next target if 7200 can be cleared.

Collins Food (CKF) – I want my bird

Collins Food daily chart (Source: Commsec)

The Collins Foods chart makes for interesting reading. Whilst the action is bullish overall, there are price and volume spikes clustered around results, following by long periods of sideways grinding. If the pattern is to repeat itself, now is not the time to buy. You’d be better off waiting for the next rotation lower and then buying ahead of the next set of results – providing you think they will deliver strong numbers again next time out.

Cochlear (COH) – Strong momentum

Cochlear daily chart (Source: Commsec)

In terms of pure momentum, there aren’t many better charts than COH right now. Classic uptrend – series of unbroken higher lows and higher highs, rising average volume, and trading in clean air. $300 is the obvious big round number target, although the RSI is looking a little toppy having just pushed above and fallen back below 80. For anyone looking to be a buyer, waiting for a pullback might serve you well.

ASX corporate actions occurring today:

• Trading ex-div: None

• Dividends paid: Beacon Minerals (BCN) – $0.001, Tamawood (TWD) – $0.16, EZZ Life Science (EZZ) – $0.01 

• Listing: None

Economic calendar (AEDT):

• 1:20 pm: RBA Brischetto Speech

• 12:00 am: US Unemployment Rate (Nov)

• 2:00 am: US Consumer Confidence (Dec)