Morning Wrap: ASX 200 to fall, Apple lifts S&P 500 and Nasdaq to record highs ahead of Fed and CPI
ASX 200 futures are trading 36 points lower, down 0.46% as of 8:30 am AEST.
In this article
ASX 200 futures are trading 36 points lower, down 0.46% as of 8:30 am AEST.
The S&P 500 and Nasdaq hit fresh closing records overnight after Apple shares surged to all-time highs, investors are bracing for a double whammy of inflation and Fed reports and Judo Capital will replace CSR in the ASX 200.
Let's dive in.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
 S&P 500 | 5,375 | +0.27% |
Dow Jones | 38,747 | -0.31% |
NASDAQ Comp | 17,344 | +0.88% |
Russell 2000 | 2,024 | -0.36% |
Country Indices | ||
 Canada | 21,887 | -0.83% |
 China | 3,028 | -0.76% |
 Germany | 18,370 | -0.68% |
 Hong Kong | 18,176 | -1.04% |
 India | 76,457 | -0.04% |
 Japan | 39,135 | +0.25% |
 United Kingdom | 8,148 | -0.98% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 2,326.6001 | -0.02% |
 Iron Ore | 106.27 | -1.03% |
 Copper | 4.51 | -0.74% |
 WTI Oil | 77.9 | +0.21% |
Currency | ||
 AUD/USD | 0.6607 | -0.05% |
Cryptocurrency | ||
 Bitcoin (AUD) | 102,063 | -3.05% |
 Ethereum (AUD) | 5,302 | -4.60% |
Miscellaneous | ||
US 10 Yr T-bond | 4.404 | -1.45% |
VIX | 12.85 | +0.86% |
US Sectors
Sector | % Chg |
|---|---|
| Information Technology | +1.66% |
| Communication Services | +0.53% |
| Materials | -0.06% |
| Consumer Staples | -0.10% |
| Consumer Discretionary | -0.22% |
| Energy | -0.24% |
Sector | % Chg |
|---|---|
| Real Estate | -0.27% |
| Health Care | -0.35% |
| Industrials | -0.54% |
| Utilities | -0.63% |
| Financials | -1.21% |
S&P 500 SESSION CHART
S&P 500 recovered from a weak start to finish positive(Source: TradingView)
OVERNIGHT MARKETS
Major US benchmarks finished mixed overnight but the S&P 500 and Nasdaq both set fresh all-time highs
Apple (+7.3%) single handedly lifted the market as it unveiled its AI efforts – the US$220bn market cap gain marks the 3rd largest single-day gain in history
Blue chip Dow, small cap Russell 2000 and Equal-weight S&P 500 all finished lower
Markets largely in waiting mode ahead of tonight’s US CPI and FOMC releases – US inflation is expected to remain unchanged in May at 3.4%
Markets remain cautious on several themes including pickup in yield volatility, breadth concerns, earnings risk from dampened pricing power and geopolitical uncertainty
Bond traders ok with higher-for-longer rates through 2024 will follow new Fed dots all the way into next year (Bloomberg)
Fund flow data shows US stock market accounted for US$56bn of the US$116bn pumped into ETFs (FT)
STOCKS
Apple's latest suite of new features seen as defining moment for AI and set to kick off iPhone upgrade super cycle (Bloomberg)
Musk warns that he will ban Apple devices if OpenAI is integrated at operating system level (Bloomberg)
Apollo Global and Kyndryl in talks about a joint bid for DXC Technology (Reuters)
Spotify introduces new premium tier with better audio, playlist tools (Bloomberg)
GM cuts 2024 EV sales projection amid weaker-than-expected demand (CNBC)
CENTRAL BANKS
Lagarde says ECB can keep rates on hold for as long as is needed, rates not on pre-determined path (FT)
ECB's Rehn and Simkus lean hawkish on further rate cuts (Bloomberg)
GEOPOLITICS
UN Security Council backs Israel-Hamas ceasefire plan outlined by Biden (FT)
Hamas accepts UN ceasefire resolution, ready to negotiate over details (Reuters)
EU in talks to keep gas flowing through Russia-Ukraine pipeline (Bloomberg)
France's far right projected to win snap election with absolute majority (Reuters)
ECONOMY
UK unemployment jumps but wage growth remains high, raising questions about BoE rate cut timing (Bloomberg)
Australian business confidence falls back into negative territory amid subdued economic activity (The Western Aus)
OPEC's latest monthly report maintains strong 2024 demand growth forecast (Reuters)
EIA cuts its OPEC+ production forecast for remainder of 2024 (Oil & Gas Journal)
Industry ETFs
Name | Value | % Chg |
|---|---|---|
Commodities | ||
| Gold Miners | 33.75 | -0.82% |
| Steel | 66.82 | -1.17% |
| Lithium & Battery Tech | 42.3 | -1.26% |
| Silver | 26.71 | -1.51% |
| Strategic Metals | 47.9 | -2.02% |
| Copper Miners | 45.06 | -2.38% |
| Uranium | 28.98 | -4.39% |
Industrials | ||
| Agriculture | 25.27 | +1.53% |
| Aerospace & Defense | 134.69 | -0.87% |
| Construction | 68.35 | -0.94% |
| Global Jets | 19.69 | -1.80% |
Healthcare | ||
| Biotechnology | 136.81 | -0.09% |
Name | Value | % Chg |
|---|---|---|
Cryptocurrency | ||
| Bitcoin | 25.43 | -3.05% |
Renewables | ||
| Solar | 47.83 | +1.21% |
| CleanTech | 9.48 | -1.66% |
| Hydrogen | 6.1 | -3.79% |
Technology | ||
| Cybersecurity | 28.75 | +0.52% |
| Video Games/eSports | 66.44 | +0.18% |
| Cloud Computing | 19.64 | +0.15% |
| Semiconductor | 243.37 | +0.08% |
| Sports Betting/Gaming | 16.8 | -0.36% |
| Robotics & AI | 31.13 | -0.51% |
| E-commerce | 24.0 | -0.58% |
| FinTech | 25.35 | -0.71% |
| Electric Vehicles | 24.47 | -0.73% |
ASX TODAY
ASX 200 set for weak start as we don't have any US$3tn market cap companies to lift the benchmark higher – although the market will likely be in waiting mode ahead of US inflation and FOMC reports tonight
ASX 200 Index changes, effective 20-Jun – Judo Capital (add), CSR (removed)
Resource-related ETFs sold off overnight – Notably Uranium (-4.3%), Nickel Miners (-3.6%), Copper (-2.3%), Rare Earths/Strategic Metals (-2.0%) and Silver (-1.5%)
Alumina takeover to be completed around 1-Aug following receive regulatory approvals and court proceedings (AWC)
Collins Foods CEO Drew O’Malley resigns effective 1-Jul (CKF)
CSR takeover receives FIRB approval (CSR)
BROKER MOVES
Champion Iron upgraded to Outperform from Neutral; target up to $7.90 from $7.50 (Macquarie)
Close the Loop initiated Buy with $0.65 target (Canaccord)
Ora Banda Mining initiated Speculative Buy with $0.50 target (Canaccord)
Regal Partners initiated Add with $4.70 target (Morgans)
Woodside upgraded to Outperform from Neutral; target remains $32 (Macquarie)
Key Events
Companies trading ex-dividend:
Wed 12 June: Tower (TWR) – $0.024, ALS (ALQ) – $0.196
Thu 13 June: Champion Iron (CIA) – $0.11, Plato Income Maximiser (PL8) – $0.006, Incitec Pivot (IPL) – $0.043
Fri 14 June: None
Mon 17 June: None
Tue 18 Jun: Premier Investments (PMV) – $0.63
Other ASX corporate actions today:
Dividends paid: None
Listing: None
Economic calendar (AEST):
11:30 am: China Inflation (May)
4:00 pm: UK GDP (Apr)
10:30 pm: US Inflation (May)
4:00 am: Fed Interest Rate Decision
4:00 am: FOMC Economic Projections
