Market Wraps

Morning Wrap: ASX 200 to fall, S&P 500 lower as Nvidia fades early strength, gold rally continues

Mon 11 Mar 24, 8:24am (AEST)

ASX 200 futures are trading 5 points higher, up 0.06% as of 8:30 am AEDT.

The ASX 200 is set to ease from record highs following a heavy overnight session for US stocks, the Dow closed out its worst week since October, Nvidia finished 5% lower despite soaring 5% in early trade, gold continues to run hot – Up for an eight straight session and US unemployment unexpectedly hit a two-year high of 3.9% in February.

Let's dive in.

Overnight Summary

Mon 11 Mar 24, 8:23am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,124 -0.65%
Dow Jones 38,723 -0.18%
NASDAQ Comp 16,085 -1.16%
Russell 2000 2,083 -0.10%
Country Indices
Canada 21,738 -0.26%
China 3,046 +0.62%
Germany 17,815 -0.16%
Hong Kong 16,353 +0.76%
India 74,119 +0.05%
Japan 39,689 +0.23%
United Kingdom 7,660 -0.43%
Name Value % Chg
Commodities (USD)
Gold 2,185.5 +0.87%
Iron Ore 117.05 +0.08%
Copper 3.8915 -0.90%
WTI Oil 78.01 -1.22%
Currency
AUD/USD 0.6625 +0.08%
Cryptocurrency
Bitcoin (AUD) 104,797 +1.35%
Ethereum (AUD) 5,894 -0.09%
Miscellaneous
US 10 Yr T-bond 4.089 -0.07%
VIX 14.74 +2.08%

US Sectors

Mon 11 Mar 24, 8:23am (AEST)

SECTOR % CHG
Real Estate +1.13%
Energy +0.39%
Utilities +0.21%
Financials +0.19%
Communication Services -
Health Care -0.24%
SECTOR % CHG
Industrials -0.26%
Consumer Discretionary -0.50%
Materials -0.56%
Consumer Staples -0.83%
Information Technology -1.84%

S&P 500 SESSION CHART

SPX 2024-03-10 20-21-14
S&P 500 fades from session highs to close near worst levels (Source: TradingView)

ASX TODAY

  • ASX 200 set for a relatively heavy session after closing at record highs on Friday

  • Bond yields continued to fall overnight, which may buoy yield-sensitive sectors like Real Estate and Utilities

  • Local tech stocks to face selling pressure after weak lead from Wall Street

  • Resources sector (notably lithium, uranium) also set for a weak start

  • Paladin Energy proposes ten-for-one share consolidation to better reflect the company’s position as an ASX 200 company and provide greater appeal to international investors

  • Kogan CFO and COO disclose sale of 2.0m shares at $8.0 per share

  • TPG in talks to acquire Techem from Partners Group (Bloomberg)

  • Ingenia Communities sees interest from Warburg Pincus PE group (AFR

BROKER MOVES

  • MAAS Group downgraded to Buy from Hold at Jefferies but target raise to $5.0 from $4.40

  • Sayona Mining upgraded to Speculative Buy from Hold at Canaccord Genuity with $0.06 target price 

MARKETS

  • S&P 500 lower, faded from session highs of 0.62%

  • Nvidia reversal was the big story – Briefly rallied 5.1% to record high of $974.0 but finished the session down -5.55% to $875.3

  • Bond yields continued to fall, with the US 10-year Treasury yield down for a fourth straight session to lowest level since 5-Feb 

  • Gold rallied for an 8th consecutive session, up to US$2,178 (down from session highs of US$2,195) 

  • Major US benchmarks were mostly lower last week, led by the Nasdaq (-1.17%), Dow (-0.93%) and S&P 500 (-0.26%)

  • Small-cap Russell 2000 outperformed, finishing the week up 0.30%

  • Big tech posted mixed performance last week, with Apple (-4.9% and Tesla (-13.4%) offsetting gains from Nvidia (+6.4%)

  • BofA says global equities attracted another US$6.9bn inflows for week ended 6-Mar, marking a seventh straight week of inflows

INTERNATIONAL STOCKS

  • TSMC's Jan-Feb period sees 9.4% sales boost thanks to AI drive (Bloomberg)

  • Costco shares sell off after Q4 earnings miss expectations (CNBC)

  • Gap shares rally on strong holiday-quarter results (CNBC)

CENTRAL BANKS

  • Powell suggests Fed nearly confident enough on inflation to begin rate cuts (Bloomberg)

  • BOJ considers new quantitative policy framework and leaning toward exiting negative rates in March (Reuters)

  • ECB officials back Lagarde flag for likely cut in June (Bloomberg)

GEOPOLITICS

  • China raising more than US$27bn for third chip fund in response to US attempts to restrain China's abilities (Bloomberg)

  • House committee advances bill that would force ByteDance to divest TikTok (FT)

  • Biden instructs military to create temporary port on Gazan coast for aid (Bloomberg)

  • Gaza ceasefire prospects dim amid Hamas' insistence on permanent truce (FT)

  • 7nm chip powering Huawei's Mate 60 relied on US technology (Bloomberg)

ECONOMY

  • US unemployment rate unexpectedly rises to two-year high of 3.9% (Reuters)

  • Canada unemployment rate edges back up to 5.8% in February (Reuters)

  • China inflation rebounds thanks to holiday boom but deflation risks linger (SCMP)

  • Japan household spending falls by most since Feb-2021 (Reuters)

  • German industrial production rebounds in January (Bloomberg)

Industry ETFs

Mon 11 Mar 24, 8:24am (AEST)

Name Value % Chg
Commodities
Gold Miners 29.64 +0.10%
Copper Miners 38.04 +0.05%
Silver 22.23 -0.04%
Steel 70.8699 -0.38%
Lithium & Battery Tech 44.18 -1.30%
Strategic Metals 50.83 -1.93%
Uranium 28.06 -4.40%
Industrials
Agriculture 22.43 -0.09%
Aerospace & Defense 129.18 -0.53%
Construction 70.64 -0.65%
Global Jets 20.1 -1.03%
Healthcare
Cannabis 5.15 +0.78%
Biotechnology 138.65 +0.24%
Name Value % Chg
Cryptocurrency
Bitcoin 31.8 +2.22%
Renewables
Solar 45.77 +1.78%
CleanTech 9.72 +1.46%
Hydrogen 5.76 +1.23%
Technology
FinTech 27.18 +1.57%
E-commerce 23.17 +0.22%
Cloud Computing 21.79 -0.05%
Cybersecurity 30.2 -0.33%
Sports Betting/Gaming 17.5989 -1.08%
Electric Vehicles 24.24 -1.22%
Robotics & AI 32.38 -1.55%
Video Games/eSports 63.06 -1.64%
Semiconductor 228.13 -4.05%

 

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: Adairs (ADH) – $0.05, Generation Development Group (GDG) – $0.01, Joyce Corp (JYC) – $0.11, Ramsay Healthcare (RHC) – $0.40, CSL (CSL) – $1.826, Coronado Global (CRN) – $0.005, COG Financial Services (COG) – $0.04, Seven Group (SVW) – $0.23, Dusk Group (DSK) – $0.025, Turners Automotive (TRA) – $0.056

  • Dividends paid: Infomedia (IFM) – $0.022, Prestal (PTL) – $0.06, Domain (DHG) – $0.02, Fiducian Group (FID) – $0.18

  • Listing: None

Economic calendar (AEDT):

No major economic announcements. 

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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