Market Wraps

Morning Wrap: ASX 200 on pace to give back all of May's gains, rising yields push US stocks lower

Thu 30 May 24, 8:28am (AEST)

ASX 200 futures are trading 52 points lower, down -0.68% as of 8:30 am AEST.

US stocks fell under the weight of higher yields and uncertainty about the Fed's rate path. All eleven S&P 500 sectors finished in negative territory, with resources leading to the downside.

Let's dive in.

Overnight Summary

Thu 30 May 24, 8:20am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,267 -0.74%
Dow Jones 38,442 -1.06%
NASDAQ Comp 16,921 -0.58%
Russell 2000 2,036 -1.48%
Country Indices
Canada 21,898 -1.65%
China 3,111 +0.05%
Germany 18,473 -1.10%
Hong Kong 18,477 -1.83%
India 74,503 -0.89%
Japan 38,557 -0.77%
United Kingdom 8,183 -0.86%
Name Value % Chg
Commodities (USD)
Gold 2,341.2 -0.65%
Iron Ore 117.74 +0.05%
Copper 4.791 -1.32%
WTI Oil 79.23 -0.75%
Currency
AUD/USD 0.6612 -0.56%
Cryptocurrency
Bitcoin (AUD) 102,297 -1.10%
Ethereum (AUD) 5,709 -1.78%
Miscellaneous
US 10 Yr T-bond 4.624 +1.81%
VIX 14.28 +10.53%

US Sectors

Thu 30 May 24, 8:21am (AEST)

SECTOR % CHG
Information Technology -0.36%
Consumer Discretionary -0.56%
Communication Services -0.56%
Consumer Staples -0.75%
Health Care -0.80%
Financials -0.84%
SECTOR % CHG
Real Estate -0.93%
Utilities -1.32%
Materials -1.42%
Industrials -1.42%
Energy -1.76%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 gaps down and trades within a relatively narrow range through to close (Source: TradingView)

OVERNIGHT MARKETS

  • Heavy overnight session with major US benchmarks lower and closing near worst levels

  • Bond yield backup remains the latest overhang driven by hawkish Fedspeak, firm economic data, soaring commodity prices and supply pressures

  • Market now only pricing in just 30 bps worth of Fed rate cuts this year, with the probability of a September rate cut down to less than  50%

  • Nvidia's market cap surges closer to Apple in a major reshuffle of Wall Street's biggest player (Reuters)

  • Wall Street's favourite recession indicator, the inverted yield curve, is in a slump of its own (WSJ)

INTERNATIONAL STOCKS

  • ConocoPhillips in advanced talks to buy Marathon Oil in all-stock deal (FT)

  • American Airlines cuts Q2 guidance, shares crater 13% (Bloomberg)

  • OpenAI begins training next AI model amid ongoing safety concerns (Axios)

  • Tesla tells suppliers to start building parts outside of China and Taiwan (FT)

GEOPOLITICS

  • Israel estimates Gaza war to last another 7 months (Reuters)

  • Israel steps up Rafah offensive as tanks enter city's centre (FT)

  • Second set of congressional US lawmakers meeting with Taiwan's president as China tensions mount (Axios)

  • China's top chipmakers push hard to localise supply of key materials and chemicals to counter US export controls (FT)

ECONOMY

  • IMF raises China growth forecasts on strong Q1 GDP and policy support (Reuters)

  • German consumer sentiment recovers further heading into June to reach highest since April 2022 (Reuters)

  • Australia's hotter than expected April inflation reinforces RBA's higher for longer stance (Bloomberg)

  • New Zealand business confidence softens further but inflation metrics ease (Interest co)

Industry ETFs

Thu 30 May 24, 8:21am (AEST)

Name Value % Chg
Commodities
Silver 29.17 -0.24%
Uranium 32.17 -0.95%
Strategic Metals 52.49 -1.15%
Lithium & Battery Tech 43.36 -1.52%
Steel 70.3131 -2.06%
Gold Miners 35.19 -2.52%
Copper Miners 48.73 -2.68%
Industrials
Agriculture 25.46 +0.99%
Construction 69.04 -1.09%
Aerospace & Defense 132.64 -1.22%
Global Jets 19.47 -2.31%
Healthcare
Biotechnology 132.51 -1.17%
Name Value % Chg
Cryptocurrency
Bitcoin 27.23 -1.73%
Renewables
Solar 47.6 -0.04%
CleanTech 9.88 -1.30%
Hydrogen 6.5 -4.97%
Technology
Cloud Computing 19.73 -0.35%
E-commerce 23.51 -0.72%
Cybersecurity 28.75 -0.83%
Video Games/eSports 64.4 -1.18%
FinTech 25.11 -1.37%
Robotics & AI 31.05 -1.58%
Electric Vehicles 24.53 -1.80%
Semiconductor 237.58 -2.07%
Sports Betting/Gaming 16.36 -2.31%

ASX TODAY

  • ASX 200 futures suggest another heavy session following Wednesday's hot CPI-driven selloff

  • Fairly bearish lead-in with all US sectors red, most commodities ticked lower overnight and VIX spiked to a near one-month high

  • Travel and leisure sector could come under pressure after a downbeat American Airlines earnings result weighed on peers

  • Australian beef exporters have had their suspensions from exporting to China removed, a potential tailwind for names like Australian Agriculture Co, Elders (ABC)

  • BHP abandons US$49bn bid after Anglo holds firm rejection, saying the miner had failed to address its concerns over the “highly complex and unattractive structure (Bloomberg)

  • Dalrymple Bay Infrastructure major shareholder QIC seeking to offload its entire 10.1% stake in the company (AFR)

  • Generation Development to raise $60-70m to help fund full acquisition of Lonsec (AFR)

  • Ramelius Resources approached Westgold Resources to discuss merger (AFR)

  • Tietto Minerals holder Mitsubishi UFJ decreases holding from 10.3% to 5.6% (TIE)

BROKER MOVES

  • Bendigo Bank upgraded to Buy from Neutral; target up to $12 from $10.40 (BofA)

  • Fisher & Paykel upgraded to Overweight from Market-weight; target up to $30 from $23.25 (Wilsons)

  • Lynas initiated Buy with $8.00 target (Ord Minnett)

  • Northern Minerals initiated Hold with $0.03 target (Ord Minnett)

  • NRW Holdings upgraded to Buy from Overweight; target up to $3.25 from $2.95 (Jarden)

  • Qoria initiated Buy with $0.60 target (Jefferies) 

Key Events

Companies trading ex-dividend: 

  • Thu 30 May: Technology One (TNE) – $0.05, KKR Credit Income Fund (KKC) – $0.017, Gryphon Capital (GCI) – $0.015, 360 Capital Mortgage REIT (TCF) – $0.035, Pengana International (PIA) – $).014, Metrics Income Opportunities (MOT) – $0.013, Metrics Master Income Trust (MXT) – $0.014

  • Fri 31 May: None

  • Mon 3 June: Newmont (NEM) – $0.268

  • Tue 4 June: None

  • Wed 5 June: Hancock & Gore (HNG) – $0.01, Infratil (IFT) – $0.017

Other ASX corporate actions today: 

  • Dividends paid: Unibail-Rodamco-Westfield (URW) – $0.147

  • Listing: None

Economic calendar (AEST):

  • 11:30 am: Australia Building Permits (Apr)

  • 10:30 pm: US GDP (Q2)

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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