Market Wraps

Morning Wrap: ASX 200 to fall, S&P 500 and Nasdaq close at record highs + Gold prices slump

Tue 11 Jun 24, 8:33am (AEST)

ASX 200 futures are trading 33 points lower, down -0.42% as of 8:30 am AEST.

The S&P 500 and Nasdaq closed at fresh all-time highs ahead of a catalyst heavy week – with US inflation and the Fed's interest rate decision due on Wednesday, Apple announces a major new partnership with OpenAI, gold has its worst day in three-and-a-half years after China's central bank halts gold purchases and takeover speculation is rife – with Bapcor, Strike Energy and Healius attracting possibly buyouts.

Let's dive in.

Overnight Summary

Tue 11 Jun 24, 8:23am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,361 +0.26%
Dow Jones 38,868 +0.18%
NASDAQ Comp 17,193 +0.35%
Russell 2000 2,032 +0.25%
Country Indices
Canada 22,070 +0.29%
China 3,051 +0.08%
Germany 18,495 -0.34%
Hong Kong 18,367 -0.59%
India 76,490 -0.27%
Japan 39,038 +0.92%
United Kingdom 8,228 -0.20%
Name Value % Chg
Commodities (USD)
Gold 2,327.0 +0.09%
Iron Ore 107.38 -1.01%
Copper 4.5435 +1.34%
WTI Oil 77.74 +2.93%
Currency
AUD/USD 0.661 +0.46%
Cryptocurrency
Bitcoin (AUD) 105,177 -0.25%
Ethereum (AUD) 5,552 -1.10%
Miscellaneous
US 10 Yr T-bond 4.469 +0.88%
VIX 12.74 +4.26%

US Sectors

Tue 11 Jun 24, 8:24am (AEST)

SECTOR % CHG
Utilities +1.27%
Energy +0.71%
Communication Services +0.61%
Consumer Discretionary +0.51%
Real Estate +0.45%
Health Care +0.30%
SECTOR % CHG
Industrials +0.29%
Information Technology +0.29%
Materials -0.11%
Consumer Staples -0.22%
Financials -0.39%

S&P 500 SESSION CHART

SPX 2024-06-11 07-35-10
S&P 500 over the last two sessions (Source: TradingView)

OVERNIGHT MARKETS

  • S&P 500 higher, finished near best levels and recouped Friday’s weakness – over the last two sessions, the index is up 0.15%

  • Hotter-than-expected US NFP and unemployment data pushed bond yields higher on Friday, with the US 2-year yield up 16 bps to 4.89%

  • Gold slumps as China's central bank halts 18-month buying spree (Bloomberg)

  • France leads European market sell-off after Macron snap election call (Bloomberg)

  • Traders brace for volatility spike ahead of this week's two main macro events - US inflation, Fed decision (Bloomberg)

  • Big tech driving S&P rally but the rest may need to step up as earnings slow (Bloomberg)

  • Fund managers increasingly opting for software over semi stocks (Bloomberg)

  • GameStop sell-off steepens as meme stock rally loses steam (CNBC)

  • BofA's Hartnett says a Fed rate cut signal trouble for the economy (Bloomberg)

  • Oil rises after Goldman report flags summer deficit on strong fuel demand (CNBC)

STOCKS

  • Apple partners with OpenAI to integrate ChatGPT into operating system (The Verge)

  • Apple unveils iOS 18 with more customisation, Siri update, focus on AI (Tech Crunch)

  • Boeing's weak delivery figures this week could deliver blow to credit outlook (FT)

CENTRAL BANKS

  • Investors brace for Fed to dial back its 2024 cut predictions this week (FT)

  • Lagarde says ECB could wait several meetings between rate cuts (Reuters)

  • ECB hawks stress caution and data-dependence following initial rate cut (Bloomberg)

  • RBI leaves rates unchanged, retains hawkish policy stance (Bloomberg)

GEOPOLITICS

  • US close to finalising landmark defence treaty with Saudi Arabia (WSJ)

  • EU Commission expected to disclose Chinese EV tariffs (Reuters)

  • Israeli forces step up Rafah campaign as tanks push west (Reuters)

  • US lawmakers call to add battery companies China's CATL, Gotion to import ban list, report says (Reuters)

ECONOMY

  • Japan GDP contracts in Q1 by less than estimates (Bloomberg)

  • Eye-popping US May payrolls jump may set back Fed ease (Reuters)

  • US job gains surge past expectations, wage growth quickens (Reuters)

  • China export growth tops forecasts, but imports underwhelm (Reuters)

  • UN food price index up for third consecutive month in May (Reuters)

Industry ETFs

Tue 11 Jun 24, 8:24am (AEST)

Name Value % Chg
Commodities
Silver 27.12 +1.69%
Copper Miners 46.16 +1.54%
Gold Miners 34.03 +1.46%
Uranium 30.31 +1.17%
Lithium & Battery Tech 42.84 +0.40%
Strategic Metals 48.89 +0.29%
Steel 67.61 -0.32%
Industrials
Construction 69.0 +0.80%
Global Jets 20.05 +0.60%
Aerospace & Defense 136.17 -0.22%
Agriculture 24.89 -1.89%
Healthcare
Biotechnology 136.94 +0.16%
Name Value % Chg
Cryptocurrency
Bitcoin 26.23 +0.27%
Renewables
Solar 47.26 +2.87%
CleanTech 9.64 +2.55%
Hydrogen 6.34 +1.60%
Technology
E-commerce 24.14 +1.77%
Cybersecurity 28.6 +1.67%
Semiconductor 243.48 +1.44%
Robotics & AI 31.29 +0.74%
Electric Vehicles 24.65 +0.61%
Cloud Computing 19.61 +0.46%
Sports Betting/Gaming 16.86 +0.30%
FinTech 25.53 -0.31%
Video Games/eSports 66.32 -1.10%

ASX TODAY

  • ASX 200 set to open lower, playing catch up as it digests two days' worth of market movements due to the long weekend closure

  • Gold down 2.7% in the last two sessions after the PBOC ended a massive 18-month buying spree – gold equities sold off sharply last Friday but bounced on Monday (e.g. Newmont down 5.0% followed by 2.3% bounce)

  • Oil prices up 2.4% in the last two sessions, with Goldman expecting a sizeable deficit in the third quarter – the analysts see a US$75 floor and US$90 ceiling for Brent this year – this could see some positive flow for local energy names

  • Bapcor has attracted an opportunistic suitor after three profit downgrades in the past twelve months (AFR)

  • GYG beefs up IPO offer by almost $100m to $335m (AFR)

  • IDP Education shares snapped up by Ellerston Capital, hoping for a rebound (AFR)

  • Opthea launches $220m capital raising (AFR)

  • Strike Energy holder Hancock Prospecting eyeing a possible buyout (The Aus)

BROKER MOVES

  • APM downgraded to hold from buy but target up to $1.45 from $1.40 (Bell Potter)

  • Brambles upgraded to Overweight from Equal-weight; target up to $16.60 from $15.70 (Morgan Stanley)

  • Codan downgraded to Neutral from Outperform but target up to $11.15 from $11.14 (Macquarie)

  • Emerald Resources initiated Buy with $4.60 target (Canaccord) 

  • SiteMinder upgraded to Overweight from Market-weight; target up o $6.50 from $5.40 (Wilsons)

Key Events

Companies trading ex-dividend: 

  • Tue 11 June: McGrath (MEA) – $0.016

  • 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

Other ASX corporate actions today: 

  • Dividends paid: Amcor (AMC) – $0.19

  • Listing: None

Economic calendar (AEST):

  • 11:30 am: NAB Business Confidence (May)

  • 4:00 pm: UK Unemployment Rate (Apr)

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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