Market Wraps

Morning Wrap: ASX 200 to fall, S&P 500 marks worst session since mid-Feb

Fri 05 Apr 24, 8:37am (AEST)

ASX 200 futures are trading 63 points lower, down 0.80% as of 8:30 am AEDT.

The S&P 500 tumbled from session highs overnight amid speculation of an Iranian attack on Israel as well as higher oil prices, hawkish Fedspeak and overbought conditions. Gold snapped a seven day win streak, Woodside's shareholders were advised to vote against its climate strategy, Taiwan's earthquake is expected to cause a short-term disruption for chips and the Fed's Kashkari says the Fed might not cut rates in 2024.

Let's dive in.

Overnight Summary

Fri 05 Apr 24, 8:25am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,147 -1.23%
Dow Jones 38,597 -1.35%
NASDAQ Comp 16,049 -1.40%
Russell 2000 2,054 -1.08%
Country Indices
Canada 22,052 -0.27%
China 3,069 -0.18%
Germany 18,403 +0.19%
Hong Kong 16,725 -1.22%
India 74,228 +0.47%
Japan 39,773 +0.81%
United Kingdom 7,976 +0.48%
Name Value % Chg
Commodities (USD)
Gold 2,308.5 -0.52%
Iron Ore 99.89 -0.52%
Copper 4.2175 +0.11%
WTI Oil 86.8 +1.34%
Currency
AUD/USD 0.6588 +0.35%
Cryptocurrency
Bitcoin (AUD) 103,164 +3.55%
Ethereum (AUD) 5,051 +0.74%
Miscellaneous
US 10 Yr T-bond 4.309 -1.06%
VIX 16.35 +14.10%

US Sectors

Fri 05 Apr 24, 8:25am (AEST)

SECTOR % CHG
Energy -0.06%
Utilities -0.20%
Consumer Staples -0.48%
Real Estate -0.78%
Industrials -0.86%
Materials -1.01%
SECTOR % CHG
Consumer Discretionary -1.16%
Financials -1.17%
Communication Services -1.39%
Health Care -1.40%
Information Technology -1.72%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 tumbles from a strong open (Source: TradingView)

MARKETS

  • S&P 500 lower, reversed an early session gain of 0.87% to finish at worst levels

  • S&P 500 finished the session down 2.0% from its intraday high

  • VIX spikes to its highest close since 2 November 2023

  • Gold marked its first red session after a seven-day run into record territory

  • WTI crude settles near US$87 a barrel amid latest Middle East headlines

  • Market reverted to risk-off attitude amid a possible Iran retaliation from a presumed Israeli strike in Syria, higher commodity prices and still hawkish Fedspeak

  • US bond yields up as strong economic data and inflation worries compel investors to doubt Fed easing path (Reuters)

  • Dollar strength fueling concerns at other central banks and prompting more intervention (Reuters)

  • Yield gap and intervention uncertainty among reasons blamed for yen weakness post-BOJ rate hike (Bloomberg)

  • Copper hits a 14-month high on supply disruptions as well as recovery hopes (Bloomberg)

ASX TODAY

  • ASX 200 set for a relatively heavy session following a risk-off overnight session

  • Key themes to look out for on Friday include resilience among energy stocks, underperformance of tech and growth sectors and uranium weakness (uranium ETF sold off 3.7% overnight)

  • APM Human Services International holder Madison Dearborn Partners (~45% stake) considering bid to privatise company (The Australian)

  • Bluescope dibs at South32’s Illawarra Metallurgical Coal (AFR)

  • Cettire admits to tax queries from Texas authorities (AFR)

  • Seven Group takeover bid for Boral extended to 18 April (SVW)

  • Woodside shareholders should vote against the re-election of chairman Richard Goyder and against its climate strategy, says advisory firm CGI Lewis (AFR)

BROKER NOTES

  • Ampol upgraded to Overweight from Neutral; raised target to $44.0 from $37.85 (JPMorgan)

  • Beach Energy downgraded to Neutral from Overweight but target increased to $1.95 from $1.85 (JPMorgan)

  • Block downgraded to Underweight from Equal-weight; target cut to $60 from $62 (Morgan Stanley)

  • Cooper Energy downgraded to Neutral from Overweight but target increased to 17 cents from 16 cents (JPMorgan)

  • Elders upgraded to Outperform from Neutral; raised target to $10.45 from $7.12 (Macquarie)

  • Ora Banda Mining upgraded to Buy from Speculative Buy; raised target to 40 cents from 35 cents (Euroz Hartleys) 

INTERNATIONAL STOCKS

  • Google considering charging for new premium AI-based search product (FT)

  • Google mulls HubSpot acquisition (Reuters)

  • Ford to delay production of an all-electric SUVs and trucks, to focus on hybrids (CNBC)

  • Levi's beats and raises guidance (CNBC)

  • ExxonMobil update flags Q1 drag from softer LNG prices and derivatives (Reuters)

  • Earthquake in Taiwan may cause short-term supply disruptions for chips and display panels, but impact expected to be limited (Reuters)

CENTRAL BANKS

  • Richmond Fed President Barkin says early 2024 data has been less encouraging and the Fed has time to wait before initiating any cuts (Reuters)

  • Fed’s Kashkari floats possibility of no rate cuts this year (Bloomberg)

  • Fed's Kugler expects disinflation without big rise in unemployment, still sees rate cuts this year (Bloomberg)

  • Bank of Mexico board members warn against rushing rate cuts (Reuters)

  • India’s Central Bank expected to leave policy unchanged Friday as rate cut hopes dim amid strong growth, persistent inflation (Bloomberg)

GEOPOLITICS

  • Iran officials say retaliation for Israeli strike will be limited (Times of Israel)

  • Biden tells Israels' Netanyahu an "immediate ceasefire" is essential (White House)

  • Blinken says Ukraine will eventually join NATO (Reuters)

  • Yellen to warn China about excess capacity global economy cannot absorb (Reuters)

  • Japan and Philippines discussing deploying Japanese troops to counter China's military activity in the region (FT)

  • NATO chief's €100bn plan for Ukraine faces obstacles (Politico)

ECONOMY

  • US initial jobless claims increased to a two-month high (Reuters)

  • Eurozone final PMI shows return to growth for economy (Sharecast)

  • Swiss inflation unexpectedly cools in March (Reuters)

Industry ETFs

Fri 05 Apr 24, 8:17am (AEST)

Name Value % Chg
Commodities
Copper Miners 44.57 +0.45%
Silver 24.49 -0.97%
Steel 71.95 -1.00%
Gold Miners 32.78 -1.09%
Lithium & Battery Tech 45.26 -1.20%
Strategic Metals 52.54 -1.54%
Uranium 30.21 -3.73%
Industrials
Agriculture 24.8 +0.40%
Aerospace & Defense 130.17 +0.39%
Global Jets 19.97 -1.33%
Construction 72.46 -1.51%
Healthcare
Cannabis 5.15 +0.78%
Biotechnology 131.63 -1.42%
Name Value % Chg
Cryptocurrency
Bitcoin 30.03 +3.95%
Renewables
Hydrogen 5.72 +0.88%
CleanTech 9.32 -0.32%
Solar 43.72 -0.36%
Technology
Sports Betting/Gaming 17.62 -0.65%
Cloud Computing 21.24 -0.79%
Electric Vehicles 24.12 -1.19%
Video Games/eSports 60.85 -1.20%
E-commerce 23.28 -1.31%
FinTech 26.51 -1.60%
Cybersecurity 29.06 -1.62%
Robotics & AI 30.57 -1.67%
Semiconductor 219.03 -2.83%

Key Events

Companies trading ex-dividend: 

  • Fri 5 April: Gowing Bros (GOW) – $0.03

  • Mon 8 April: None

  • Tue 9 April: Brickworks (BKW) – $0.24

  • Wed 10 April:

  • Thu 11 April:  Cosol (COS) – $0.01, Duxton Water (D20) – $0.036

  • Fri 12 April: Kogan (KGN) – $0.075 

Other ASX corporate actions today: 

  • Dividends paid: Ambertech (AMO) – $0.01, AUB Group (AUB) – $0.20, Cue Energy (CUE) – $0.02, Service Stream (SSM) – $0.02, Ramsay Healthcare (RHC) – $0.04, Joyce Corp (JYC) – $0.11, CTI Logistics (CLX) – $0.05, Monash IVF (MVF) – $0.025, Pacific Smiles (PSQ) – $0.02, Shriro (SHM) – $0.02, Wisetech (WTGC) – $0.077, Auckland International Airport (AIA) – $0.06 

  • Listing: None

Economic calendar (AEDT):

  • 11:30 am: Australia Balance of Trade (Feb)

  • 11:30 pm: Canada Unemployment Rate (Mar)

  • 11:30 pm: US Non Farm Payrolls (Mar)

  • 11:30 pm: US Unemployment Rate (Mar) 

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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