Morning Wrap: ASX 200 to fall, Australian Dollar falls after RBA language pivot, US CPI in focus tonight
ASX 200 futures are trading 27 points lower, or 0.32%, as of 8:20am AEDT.
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ASX 200 futures trading up 6 points, or (+0.07%), to 8,203, as of 8:30AM
Although the RBA held interest rates yesterday, they finally jumped off the non-committal fence when they retired the phrase "not ruling anything in or out." At the press conference, Governor Michele Bullock said that while the war against inflation was not won yet, they finally had more confidence that things are moving in the right direction. The news sent the Australian Dollar south and the equity market north. Now, all eyes turn to the ECB (who is likely to cut rates by 25 basis points), and even more importantly, the US inflation report.
Let's dive in.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
 S&P 500 | 5,974 | +0.73% |
Dow Jones | 42,907 | +0.16% |
NASDAQ Comp | 19,765 | +0.98% |
Russell 2000 | 2,234 | -0.39% |
Country Indices | ||
 Canada | 24,749 | +0.61% |
 China | 3,351 | -0.50% |
 Germany | 19,849 | -0.18% |
 Hong Kong | 19,883 | +0.82% |
 India | 78,540 | +0.64% |
 Japan | 39,161 | +1.19% |
 United Kingdom | 8,103 | +0.22% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 2,625.7 | -0.73% |
 Iron Ore | 103.84 | 0.00% |
 Copper | 4.095 | -0.13% |
 WTI Oil | 69.45 | -0.01% |
Currency | ||
 AUD/USD | 0.6251 | -0.02% |
Cryptocurrency | ||
 Bitcoin (USD) | 93,366 | -2.17% |
 Ethereum (AUD) | 5,466 | +4.03% |
Miscellaneous | ||
US 10 Yr T-bond | 4.599 | +1.66% |
VIX | 16.99 | -7.45% |
US Sectors
Sector | % Chg |
|---|---|
| Communication Services | +1.35% |
| Information Technology | +1.26% |
| Health Care | +1.04% |
| Energy | +0.61% |
| Real Estate | +0.50% |
| Consumer Discretionary | +0.42% |
Sector | % Chg |
|---|---|
| Utilities | +0.39% |
| Financials | +0.29% |
| Industrials | -0.04% |
| Materials | -0.12% |
| Consumer Staples | -0.57% |
S&P 500 SESSION CHART
A steady slide for the S&P 500 - Did the Santa rally come early again this year? (Source: TradingView)
OVERNIGHT MARKETS
US equities ended lower and near worst levels in Tuesday trading. Big tech was a cushion; group was mixed though Alphabet and Tesla were notable gainers.
Treasuries were weaker across the curve. US Dollar Index was up 0.2%.
Gold finished up 1.2%. Bitcoin futures were up 0.2%. WTI crude settled up 0.3%.
MARKETS
Jefferies says small caps are poised to outperform large stocks for the first time in eight years (CNBC)
Loosening regulations poised to revive corporate dealmaking in Trump era (Bloomberg)
STOCKS
Citigroup expects a 25% to 30% rise in investment banking fees in the fourth quarter (Reuters)
JPMorgan Chase expects NII [net interest income] to beat expectations next year (Bloomberg)
Boeing says it has resumed production of 737 MAX after 53-day long labour strike (Bloomberg)
Microsoft shareholders vote against company investing in Bitcoin (Quartz)
Walgreens reportedly in talks to sell itself to private equity firm Sycamore Partners (Bloomberg)
Proxy advisers tell clients to vote against ANZ's remuneration report (AFR)
EARNINGS
Oracle's Q2 results fall just short of elevated expectations (Bloomberg)
China to investigate Nvidia over 2020 deal that may have broken anti-monopoly laws (NY Times, Bloomberg)
TSMC sales rise 34% in November, reflecting sustained growth from AI demand (Bloomberg)
Stellantis and Chinese battery maker CATL to build the EV gigafactory in Spain for $4.33B (Reuters)
GEOPOLITICS
Taiwan's defense ministry says large Chinese military force has been detected nearby; unclear if drill (NPR)
New commerce chief in Syria says country will become a free market economy (Reuters)
Israel to impose defense security buffer in southern Syria (Reuters)
Ukraine's Zelenskiy seeks diplomatic end to Russia's war, raises idea of foreign troops (Reuters)
Canada PM Trudeau pledges to respond if Trump imposes tariffs (Bloomberg)
ECONOMY
Chinese Politburo signals it is ready to deploy any stimulus needed to counter US trade-tariff war (Reuters)
Florida orange production forecast to fall to lowest since 1930 on hurricane impact (Bloomberg)
Today in Review
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
| ASX 200 | 8,201.6 | +1.67% |
| All Ords | 8,452.7 | +1.64% |
| Small Ords | 3,087.3 | +1.58% |
| All Tech | 3,829.3 | +1.67% |
| Emerging Companies | 2,245.5 | +1.13% |
Currency | ||
| AUD/USD | 0.6249 | -0.04% |
US Futures | ||
| S&P 500 | 6,036.5 | +0.58% |
| Dow Jones | 43,334.0 | +0.04% |
| Nasdaq | 21,741.5 | +0.81% |
Name | Value | % Chg |
|---|---|---|
Sector | ||
| Financials | 8,664.6 | +2.38% |
| Consumer Discretionary | 3,933.4 | +2.30% |
| Real Estate | 3,853.1 | +1.95% |
| Utilities | 9,031.1 | +1.67% |
| Industrials | 7,716.7 | +1.66% |
| Information Technology | 2,752.7 | +1.46% |
| Energy | 8,407.2 | +1.38% |
| Communication Services | 1,647.2 | +1.37% |
| Materials | 16,258.4 | +0.98% |
| Consumer Staples | 11,743.2 | +0.64% |
| Health Care | 44,621.7 | +0.57% |
BROKER MOVES
Pilbara Minerals upgraded to buy from hold at Bell Potter, target price of $2.95 (implying 29% upside)
James Hardie Industries initiated buy at US bank Truist, target price of $45 (implying 27% upside)
Generation Development Group initiated overweight at Morgan Stanley, target price of $4.75 (implying 25% upside)
Key Events
Stocks trading ex-dividend:
Wed 11 Dec: WCM Global Growth Limited (WCG) - 1.09%
Fri 13 Dec: Metcash (MTS) - 2.54%
Mon 16 Dec: Plato Income Maximiser (PL8) - 0.45%
Tue 17 Dec: Elders (ELD) - 2.37%
Economic calendar (AEDT):
Overnight: US CPI, Bank of Canada interest rate decision
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