Morning Wrap: ASX 200 to fall at open, US jobs data propels markets to more record highs, ANZ CEO Elliott to retire

ASX 200 futures trading up 6 points, or (+0.07%), to 8,203, as of 8:30AM

The US payrolls report gave Wall Street just enough leverage to keep the door open for another 25 basis point interest rate cut from the Federal Reserve when they meet next week. US inflation, which is out Thursday early morning, will likely either seal the deal or set a cat amongst the pigeons. Meanwhile, Shayne Elliott, Australia's longest-tenured Big Bank CEO has decided to call it quits with former HSBC executive Nuno Matos to take his place. This move means Matos will oversee the ANZ-Suncorp Bank integration when it happens early next year.

Let's dive in.

S&P 500 SESSION CHART

57 record highs - and counting - for the S&P 500 in 2024. (Source: TradingView)

OVERNIGHT MARKETS

• US equities mostly higher Friday.

  • Major indexes mixed for the week with tech driving S&P and Nasdaq strength. Equal-weight S&P lagged by more than 200 bp.

• Treasuries mostly firmer with curve steepening.

• US Dollar index up 0.3%. Gold finished up 0.4%. Bitcoin futures up around 2.5%.

• WTI crude settled down 1.6%.

• Pimco warns of potential Eurozone rate cuts amid trade war tensions (FT)

MARKETS

• Investors rethink next growth engine for stocks as Mag 7 profit growth slows (Bloomberg)

• Strategists see further S&P 500 upside in 2025 as gains broaden, but cautious on longer-term outlook (WSJ)

• Outlook for EM currencies in Asia, Europe worsening as yuan, euro weakness accelerates (Bloomberg)

• PBoC resumes gold purchases after six-month pause after easing from October record high (Bloomberg)

STOCKS

• Omincom reportedly in advanced talks to acquire Interpublic in all-stock deal valued up to $14B (WSJ)

• Lululemon stock surges on profit beat as company boosts full-year outlook (Yahoo)

GEOPOLITICS

• Assad regime collapses after Syrian rebels topple Damascus (FT)

• South Korean President Yoon survives impeachment vote after party members boycott vote (FT)

• Trump so far signaling he's move aggressively to protect dollar's reserve status (Bloomberg)

• Trump says he will end birthright citizenship, won't cut Social Security, Medicare as part of DOGE program (NBC News )

• US government approves export of advanced AI chips to Microsoft facility in UAE (Axios)

ECONOMY

• November nonfarm payrolls came in at 227K, above street expectations while October also revised up (to 36K from initial 12K print). September also revised up. Unemployment rate ticked up to 4.2% vs expectations to hold at 4.1%.

• Trump says he has no plans to replace Fed Chair Powell when he returns to White House (Bloomberg)

• ECB expected to cut by 25 bp; Australia, Canada, Brazil central banks also meet this week (FT, Bloomberg)

• Fed still expected to cut in December, but economists uncertain on 2025 path given strong labor market, elevated wage growth (CNBC)

Stocks trading ex-dividend: 

• Tue 10 Dec: Premier Investments (PMV) - 1.98%

• Wed 11 Dec: WCM Global Growth Limited (WCG) - 1.09%

• Fri 13 Dec: Metcash (MTS) - 2.54%

Economic calendar (AEDT):

• No major events of note