Market Wraps

Morning Wrap: ASX 200 to fall, NVIDIA cracks $1,000 milestone and announces stock split, Anglo American knocks back third BHP offer

Thu 23 May 24, 8:54am (AEST)

ASX 200 futures are trading 52 points lower, down -0.68% as of 8:30 am AEST.

It was a massive night for overseas news. NVIDIA's latest quarterly earnings and forecast both shattered the consensus estimate, sending its shares past the US$1,000 mark for the first time. It also said it would lift its quarterly dividend by - get this - 150% (!) and commence a 10-for-1 stock split. It was a moment captured like this on CNBC:

NVIDIA CNBC $1000

But not to be outdone, BHP made a third offer for Anglo American - this time, valued at nearly $74 billion. Even more remarkably, Anglo American have given BHP just one week to Mike Henry's team to come up with a fourth offer.

What a time to be alive.

Let's dive in.

Overnight Summary

Mon 27 May 24, 8:20am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,305 +0.70%
Dow Jones 39,070 +0.01%
NASDAQ Comp 16,921 +1.10%
Russell 2000 2,070 +1.04%
Country Indices
Canada 22,321 +0.54%
China 3,089 -0.88%
Germany 18,693 +0.01%
Hong Kong 18,609 -1.38%
India 75,410 -0.01%
Japan 38,646 -1.17%
United Kingdom 8,318 -0.26%
Name Value % Chg
Commodities (USD)
Gold 2,334.5 -0.12%
Iron Ore 117.66 +0.11%
Copper 4.7535 -0.81%
WTI Oil 77.72 +1.11%
Currency
AUD/USD 0.6629 +0.35%
Cryptocurrency
Bitcoin (AUD) 103,344 -0.87%
Ethereum (AUD) 5,803 +2.72%
Miscellaneous
US 10 Yr T-bond 4.467 -0.18%
VIX 11.93 -6.58%

US Sectors

Fri 24 May 24, 8:22am (AEST)

SECTOR % CHG
Information Technology +0.56%
Materials -0.88%
Energy -1.02%
Health Care -1.08%
Communication Services -1.15%
Consumer Staples -1.20%
SECTOR % CHG
Industrials -1.22%
Financials -1.51%
Consumer Discretionary -1.52%
Utilities -1.70%
Real Estate -2.16%

S&P 500 SESSION CHART

SPX Wednesday 22 May 2024
Spot when traders realised NVIDIA was about to report! (Source: TradingView)

OVERNIGHT MARKETS

  • Dow closes down 200 points after Fed officials show willingness to hike rates if needed

  • ‘Various’ Fed officials said they were willing to hike interest rates if needed, minutes show

  • European markets close lower as UK inflation misses estimate

  • Treasury yields inch higher as Fed still sees no rate cuts soon

  • Oil prices extend losing streak, books third consecutive daily decline

  • Gold prices dip after record highs on profit taking, rate cut bets cool

INTERNATIONAL STOCKS

  • Nvidia reports a 262% jump in sales, signals continuing AI boom

  • Amazon plans to give Alexa an AI overhaul — and a monthly subscription price

  • DeepL, a European rival to Google Translate, rides AI hype to a $2 billion valuation

  • Boeing deliveries to China delayed by state regulator review, Reuters source says

  • Miner Anglo American rejects third takeover offer from rival BHP Group as talks deadline extended

  • Lululemon chief product officer leaving, company restructuring product and brand teams

  • Zesla's European sales slump as EV market shows growth

MORE ON THE MARKETS

  • Investors holding cash despite stock market highs signals potential for continued bull market

  • Bond traders doubt Fed's rate cuts as market shifts amid inflation data

  • Traders pare expectations of two Fed rate cuts in 2024

  • China equity market rebound characterised by improving breadth

  • Domestic investors fuelling China rally as foreign inflows remain relatively mild

ECONOMY

  • UK inflation declines less than expected, fueling doubts over BoE rate cut timing

  • UK employers grant nearly 5% pay increases amid persistent inflation pressures

  • Weak yen fuels rebound in Japan imports, autos and semi components drive export growth

  • Japan manufacturer sentiment unchanged as yen-driven inflation weighs on confidence

  • Japan currency diplomat Kanda sees G7 officials discussing Chinese overcapacity this week amid US tariffs

CENTRAL BANKS

  • Federal Reserve minutes indicate worries over lack of progress on inflation

  • Fed's Mester and Bostic reinforce higher-for-longer message

  • BoE Governor Bailey anticipates significant inflation drop and potential rate cut

  • RBNZ leaves OCR unchanged, but forecasts lean hawkish amid inflation concerns

  • China's central bank guides banks to step up lending in May

  • BOK unanimously expected to remain on hold Thursday

ASX TODAY

  • BHP's US-listed shares tumbled nearly 5% on the news its third offer had been rejected by Anglo American. That will likely weigh on the index today - at least at the start of trade.

  • Nufarm releases earnings.

  • GQG Partners, Gold Resources, Karoon Energy, Pepper Money, Resolute Mining, Stanmore Resources and Ventia Services all host AGMs.

  • Aristocrat Leisure and Orica trade ex-dividend.

Industry ETFs

Mon 27 May 24, 8:20am (AEST)

Name Value % Chg
Commodities
Copper Miners 48.66 +1.88%
Uranium 32.0 +1.78%
Strategic Metals 53.32 +1.51%
Gold Miners 35.26 +1.47%
Lithium & Battery Tech 44.29 +1.00%
Steel 71.7093 +0.70%
Silver 27.74 +0.69%
Industrials
Aerospace & Defense 135.55 +1.04%
Construction 70.74 +0.87%
Global Jets 20.27 +0.50%
Agriculture 24.67 +0.16%
Healthcare
Biotechnology 135.67 +0.03%
Name Value % Chg
Cryptocurrency
Bitcoin 28.07 +3.20%
Renewables
Solar 47.5 +5.23%
CleanTech 9.77 +3.72%
Hydrogen 6.54 +2.99%
Technology
Semiconductor 238.56 +1.98%
Electric Vehicles 24.76 +1.77%
Sports Betting/Gaming 17.1409 +1.02%
Video Games/eSports 65.05 +0.93%
Robotics & AI 31.53 +0.90%
Cybersecurity 29.28 +0.72%
FinTech 25.62 +0.67%
E-commerce 24.05 +0.59%
Cloud Computing 19.93 -0.75%

 

Key Events

Trading ex-dividend this week:

  • Orica Ltd (ORI) - 23 May - $0.19

  • Aristocrat (ALL) - 23 May - $0.36

  • Whitefield (WHF) - 24 May -$0.102

Economic releases:

  • 8:45 am – NZD – Retail sales, core retail sales

  • 9:00 am – AUD – Flash manufacturing PMI, flash services PMI

  • 10:30 am – JPY – flash manufacturing PMI

  • 11:00 am – AUD -MI inflation expectations

  • From 5:15 pm – EUR – French, German, euro and British manufacturing PMI

  • 10:30 pm – USD – Unemployment claims

  • 11:00 pm – CNY – CB leading index

  • 11:45 pm – USD – Flash manufacturing PMI, flash services PMI

This Morning Wrap was written by Hans Lee and Chris Conway.

Written By

Hans Lee

Senior Editor

Hans is one of the Senior Editors at Livewire Markets and Market Index. He created Signal or Noise and leads the team's coverage of the global economy and fixed income markets.

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