Market Wraps

Morning Wrap: ASX 200 to bounce after worst weekly performance since Sep-23, S&P 500 extends selloff

Mon 22 Apr 24, 8:32am (AEST)

ASX 200 futures are trading 27 points higher, up 0.35% as of 8:30 am AEST.

The S&P 500 and Nasdaq turned lower last Friday to cap off six-straight decline and three straight weekly drops, defensive pockets of the market start to shine amid a flight to safety, Citi lowers its ratings for all Australian banks to sell, Air New Zealand downgrades its full-year guidance on deteriorating economic conditions and Cettire's most prominent backer exits the stock.

Let's dive in.

Overnight Summary

Mon 22 Apr 24, 8:20am (AEST)

Name Value % Chg
Major Indices
S&P 500 4,967 -0.88%
Dow Jones 37,986 +0.56%
NASDAQ Comp 15,282 -2.05%
Russell 2000 1,948 +0.24%
Country Indices
Canada 21,807 +0.46%
China 3,065 -0.29%
Germany 17,737 -0.56%
Hong Kong 16,224 -0.99%
India 73,088 +0.83%
Japan 37,068 -2.66%
United Kingdom 7,896 +0.24%
Name Value % Chg
Commodities (USD)
Gold 2,413.8 +0.66%
Iron Ore 108.25 +0.28%
Copper 4.4975 +1.37%
WTI Oil 83.14 +0.50%
AUD/USD 0.6417 -0.08%
Bitcoin (AUD) 100,742 -0.01%
Ethereum (AUD) 4,897 -0.23%
US 10 Yr T-bond 4.615 -0.69%
VIX 18.71 +3.94%

US Sectors

Mon 22 Apr 24, 8:20am (AEST)

Utilities +1.47%
Financials +1.35%
Energy +1.12%
Consumer Staples +0.95%
Real Estate +0.40%
Health Care +0.32%
Materials -0.11%
Industrials -0.19%
Consumer Discretionary -1.19%
Communication Services -2.03%
Information Technology -3.08%


S&P 500 intraday
S&P 500 sold off from breakeven open to finish near worst levels (Source: TradingView)


  • S&P 500 and Nasdaq lower last Friday and finished near worst levels despite opening in positive territory

  • Equal-weighted S&P finished in positive territory and outperformed by over 100 bps, reflecting tech-led selloff

  • US equities finished mostly lower last week, led by the Nasdaq (-5.5%), S&P 500 (-3.05%) and Russell 2000 (-2.77%) while the Dow rose 0.01%

  • Market struggled to shake off the hawkish repricing of Fed rate cut expectations and heightened war tensions in the Middle East

  • Global equities added to last week's US$19.6bn outflow with another US$9.1bn outflow, according to EPFR data

  • Citi noted this week that of US$52bn long positions on S&P 500, 88% in a loss

  • Strategists say tech selloff driven by expectations toward slower earnings growth (FT)

  • High bar into tech earnings with group trading at 31x forward earnings (Bloomberg)

  • China driving gold rally with strong demand from individuals, funds and its central bank (Bloomberg)

  • US junk bond funds experience biggest outflow in 14 months amid spike in Treasury yields (Bloomberg)


  • ASX 200 set to open higher after a 2.84% drop last week, which marked its worst weekly performance since mid-September 2023.

  • ASX 200 somewhat bounced last Friday, finishing the session down -0.98% from session lows of -1.96%

  • Sectors to watch on Monday include banks (Citi downgraded major Australian banks), copper miners (copper prices hit US$4.5/lb overnight), nickel miners (nickel prices rallied 5.5% to hit highest since Sep-23), tech (tech-led selloff on Wall Street overnight) and airlines (Air New Zealand downgraded its FY24 earnings)

  • Air New Zealand cuts full-year guidance on deteriorating economic and operational conditions (AIZ)

  • Cettire's major holder LHC sells stake (AFR)

  • Cochlear receives FDA clearance to lower age for the Osia to 5-years old (COH)

  • KKR named preferred bidder for Perpetual’s Corporate Trust and Wealth Management units, suggests EQT is no longer in contention (The Aus)

  • Origin Energy CEO Frank Calabria discloses sale of ~211,000 shares (ORG)

  • Paladin Energy completes ten-for-one- share consolidation (PDN)


A few broker notes of interest that have come out since Friday arvo.

  • ANZ downgraded to Sell from Neutral; target remains $26.00 (Citi)

  • Goodman Group downgraded to Neutral from Overweight but target increased to $30.00 from $28.00 (Barrenjoey)

  • Karoon Energy downgraded to Sector Perform from Outperform; target cut to $2.25 from $2.30 (RBC Capital Markets)

  • Lovisa initiated Buy with $39.00 target (Jefferies)

  • Netwealth downgraded to Sell from Neutral at Citi but target increased to $18.65 from $18.35 (Citi)

  • Pilbara Minerals downgraded to Underweight from Neutral; target cut to $3.10 from $3.25 due to valuation (JPMorgan)

  • Westpac downgraded to Sell from Neutral; target remains $22.25 (Citi)

  • Whitehaven Coal upgraded to Add from Hold; target increased to $8.90 from $7.75 (Morgans)


  • Netflix subscriber growth easily tops estimates following password sharing crackdown, but revenue forecast underwhelms (Bloomberg)

  • Apple removes WhatsApp and Threads from China app stores at request of China's internet regulator (Bloomberg)

  • Google announces workplace restructure to streamline rollout of AI products (FT)

  • American Express shares soar on earnings beat, US consumer spending increased 8% from a year earlier (Barron’s)

  • Tesla cuts prices on cars by US$2,000 and FSD software by a third (Bloomberg)


  • Atlanta Fed President Bostic doesn't believe it is appropriate to ease until towards end of 2024 (Bloomberg)

  • Minneapolis Fed President Kashkari says rates could potentially remain unchanged in 2024 (Bloomberg)

  • BOJ Governor Ueda reaffirms potential policy change if yen weakness pushes up inflation (Reuters)

  • ECB's Simkus says several rate cuts are most likely but does not need to chart the course precisely (Reuters)

  • China to leave benchmark lending rates unchanged on Monday (Reuters)


  • Israel carefully calibrated its response to reduce the risk of escalation (NY Times)

  • Israel strikes targets inside Iran, according to US officials (NY Times)

  • US and Israel held a high-level virtual meeting about a possible Israeli operation in Rafah (Axios)


  • Japan CPI cools more than expected as 'core core' measure falls below 3% for first time since Nov-2022 (Reuters)

  • UK retail sales miss expectations in March on high prices (Bloomberg)

Industry ETFs

Mon 22 Apr 24, 8:21am (AEST)

Name Value % Chg
Silver 26.2 +1.31%
Gold Miners 34.07 +0.95%
Steel 70.7 +0.55%
Uranium 28.83 -0.17%
Strategic Metals 50.1 -0.40%
Copper Miners 45.98 -0.50%
Lithium & Battery Tech 42.42 -1.14%
Agriculture 26.51 +2.24%
Aerospace & Defense 128.0 +0.42%
Global Jets 20.46 +0.24%
Construction 67.16 -0.46%
Cannabis 5.15 +0.78%
Biotechnology 124.72 +0.06%
Name Value % Chg
Bitcoin 28.1 +1.19%
Solar 39.59 -0.28%
CleanTech 8.34 -0.95%
Hydrogen 5.05 -1.56%
E-commerce 21.93 -0.27%
Sports Betting/Gaming 16.565 -0.39%
Cybersecurity 27.36 -0.65%
FinTech 24.98 -0.68%
Cloud Computing 20.0 -0.89%
Video Games/eSports 58.05 -1.02%
Electric Vehicles 22.32 -1.72%
Robotics & AI 28.65 -2.02%
Semiconductor 198.39 -3.99%

Key Events

Companies trading ex-dividend: 

  • Mon 22 April: MFF Capital (MFF) – $0.06

  • Tue 23 April: Naomi Cotton (NAM) – $0.01 

  • Wed 24 April None

  • Thu 25 April: None

  • Fri 26 April: None

Other ASX corporate actions today: 

  • Dividends paid: Gowing Bros (GOW) – $0.03 

  • Listing: None

Economic calendar (AEST):

No major economic announcements.

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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