Morning Wrap: ASX 200 to edge higher, S&P 500 ends flat ahead of US CPI report
ASX 200 futures are up 10pts (+0.12%) as of 8:30 am AEDT.
In this article
ASX 200 futures are up 10pts (+0.12%) as of 8:30 am AEDT.
In a nutshell:
A choppy and light volume session ahead of US CPI report tonight
ASX also light on announcements and broker updates this morning
Key funding updates from Arafura Resources and Macquarie
Let's dive in.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
 S&P 500 | 5,843 | +0.11% |
Dow Jones | 42,518 | +0.52% |
NASDAQ Comp | 19,044 | -0.23% |
Russell 2000 | 2,216 | +0.98% |
Country Indices | ||
 Canada | 24,589 | +0.21% |
 China | 3,241 | +2.54% |
 Germany | 20,271 | +0.69% |
 Hong Kong | 19,220 | +1.83% |
 India | 76,500 | +0.22% |
 Japan | 38,474 | -1.83% |
 United Kingdom | 8,202 | -0.28% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 2,688.7 | +0.34% |
 Iron Ore | 98.72 | +0.64% |
 Copper | 4.347 | +0.59% |
 WTI Oil | 77.76 | -1.19% |
Currency | ||
 AUD/USD | 0.6189 | +0.45% |
Cryptocurrency | ||
 Bitcoin (USD) | 96,422 | +2.80% |
 Ethereum (AUD) | 5,201 | +3.89% |
Miscellaneous | ||
US 10 Yr T-bond | 4.788 | -0.31% |
VIX | 19.06 | -0.68% |
US Sectors
Sector | % Chg |
|---|---|
| Utilities | +1.30% |
| Financials | +1.28% |
| Materials | +1.24% |
| Industrials | +1.16% |
| Energy | +0.94% |
| Real Estate | +0.88% |
Sector | % Chg |
|---|---|
| Consumer Staples | +0.00% |
| Information Technology | -0.10% |
| Consumer Discretionary | -0.32% |
| Health Care | -0.94% |
| Communication Services | -0.97% |
S&P 500 SESSION CHART
S&P 500 breakeven amid choppy trade (Source: TradingView)
OVERNIGHT MARKETS
Major US benchmarks finished mostly higher but off best levels
S&P 500 extended yesterday's gains while the Nasdaq continued to ease
Small caps, defensives and rate-sensitive sectors led to the upside, tech and growth underperformed
Relatively choppy session, with very light volume as the market gets ready for the all-important December CPI report tonight
Today’s big story – Stocks responded positively to a cooler-than-expected US December Producer Price Index after last week’s strong jobs report and Fed minutes raised concerns about upside inflation risks
Weaker demand for long-duration, investment grade bonds amid hawkish Fed repricing, says BofA (BBG)
Dollar strength to continue on fewer rate cuts, tariff implementation, according to currency strategists (BBG)
STOCKS
Eli Lilly shares dip 6.8% on disappointing Q4 results, Zepbound and Mounjaro revenues miss expectations (BBG)
Meta planning to cut about 5% of lowest performers with intent of backfilling their roles (BBG)
Meta, Google expected to be top beneficiaries of displaced ad dollars from TikTok ban (AX)
Biggest semiconductor firms revising down capex estimates amid capacity glut, weaker EV and smartphone demand (NK)
Apple, Samsung smartphone shipments declined in Q4 as China rivals expanded market share (RT)
CENTRAL BANKS
BOJ's Himino says members to discuss rate hike next week (BBG)
ECB's Rehn expects Eurozone rates to exit restrictive territory by mid-2025 (RT)
ECB' Holzmann unsure about a January rate hike, citing setback for inflation (BBG)
POLITICS & GEOPOLITICS
Trump preparing executive orders to boost fossil fuel production, roll back Biden energy, automobile policies (WSJ)
Gaza ceasefire "breakthrough," with next 24 hours seen as pivotal (FT)
China increasing scrutiny of exports by Apple and other US tech companies (NK)
Canada's US ambassador says Trump tariffs will result in tit-for-tat retaliation (BBG)
ECONOMY
US December headline Producer Price Index up 0.2% month-on-month (vs 0.3% consensus) and core PPI was unchanged month-on-month (vs 0.3% consensus) amid unchanged services prices
Australian consumer confidence falls amid economic concerns but consumers remain less pessimistic than a year ago and forward looking measures were more stable (BBG)
Industry ETFs
Name | Value | % Chg |
|---|---|---|
Commodities | ||
| Gold Miners | 36.35 | +2.74% |
| Lithium & Battery Tech | 41.12 | +1.46% |
| Strategic Metals | 41.63 | +1.41% |
| Silver | 27.22 | +0.96% |
| Copper Miners | 39.28 | +0.54% |
| Steel | 59.3 | +0.42% |
| Uranium | 27.195 | +0.35% |
Industrials | ||
| Construction | 77.45 | +2.72% |
| Global Jets | 26.14 | +1.99% |
| Aerospace & Defense | 148.11 | +1.35% |
| Agriculture | 26.66 | -0.34% |
Healthcare | ||
| Biotechnology | 131.57 | -1.83% |
Name | Value | % Chg |
|---|---|---|
Cryptocurrency | ||
| Bitcoin | 23.46 | +3.17% |
Renewables | ||
| Solar | 34.015 | +0.87% |
| CleanTech | 6.92 | -0.29% |
| Hydrogen | 22.96 | -0.43% |
Technology | ||
| Sports Betting/Gaming | 18.9584 | +1.88% |
| FinTech | 30.91 | +1.41% |
| E-commerce | 27.5455 | +1.23% |
| Cloud Computing | 23.72 | +1.19% |
| Cybersecurity | 31.87 | +0.98% |
| Semiconductor | 218.96 | +0.66% |
| Electric Vehicles | 22.91 | +0.35% |
| Robotics & AI | 31.49 | +0.10% |
| Video Games/eSports | 81.92 | +0.02% |
ASX TODAY
Arafura Resources to receive $200 million in unsecured convertible notes from the National Reconstruction Fund (AFR)
Auckland International Airport reports December traffic, total monthly passengers up 3.0% year-on-year to 1.77m (AIA)
Macquarie Asset Management to fund up to $5.0 billion for Applied Digital’s high-performance computing campus (RT)
Yancoal CEO David James Moult resigns to devote more time to his other business engagements, active duties ceased on Tuesday 14 Jan (YAL)
WHAT TO WATCH TODAY
Gold: Gold Miners ETF ticked 2.6% higher on the cooler-than-expected PPI data. Tonight's US CPI will be another major catalyst for bullion prices
Ingenia Communities: Late-arvo announcement guided FY25 EBIT of $162-165m vs. prior target $148-155m and $144.8m consensus (~8% upgrade at midpoint) and EPS upgrade to 29-30 cents vs. prior 24.4-25.6 cents (~18% upgrade) . Stock rallied 15.0% but will be interesting to see if more buying kicks in given the timing of the announcement
BROKER MOVES
Guzman y Gomez upgraded to Neutral from Sell; target up to $40 from $37 (UBS)
Key Events
Stocks trading ex-dividend:
Wed 15 Jan: Tower (TWR) – 4.28%
Thu 16 – Fri 17 Jan: None
Other ASX corporate actions today:
Dividends paid: None
Listing: None
Earnings: None
AGMs: None
Economic calendar (AEDT):
5:00 pm: UK Inflation (Dec)
7:00 pm: Germany GDP (Q4)
11:30 pm: US Inflation (Dec)
