Market Wraps

Morning Wrap: ASX 200 to rise + 3 broker initiations + The charts of the week

Fri 30 Jun 23, 8:30am (AEST)

ASX 200 futures are up 12 points, or 0.16% to 7,166 as of 7:30am AEST.

The value trade was in vogue last night with the Dow Jones being the clear outperformer among the major market indices. Bank stocks rallied after all of them passed the Federal Reserve's annual stress test. On the macro front, the US economy expanded by 2% in the first quarter of 2023 and a downtick in unemployment claims is providing the bulls with a sigh of relief. Chinese PMIs will headline the final day of the financial year.

Let's dive in.

Overnight Summary

Fri 30 Jun 23, 8:30am (AEDT)

Name Value Chg %
Major Indices
S&P 500 4,396 +0.45%
Dow Jones 34,122 +0.80%
NASDAQ Comp 13,591 0.00%
Russell 2000 1,882 +1.23%
Country Indices
Canada 19,913 +0.48%
China 3,182 -0.22%
Germany 15,947 -0.01%
Hong Kong 18,934 -1.24%
India 63,915 +1.50%
Japan 33,234 +0.12%
United Kingdom 7,472 -0.38%
Name Value Chg %
Commodities (USD)
Gold 1,916.80 -0.06%
Iron Ore 112.62 -
Copper 3.678 0.00%
WTI Oil 69.74 -0.17%
Currency
AUD/USD 0.6618 +0.02%
Cryptocurrency
Bitcoin (AUD) 46,004 +0.93%
Ethereum (AUD) 2,800 +1.17%
Miscellaneous
US 10 Yr T-bond 3.854 +3.88%
VIX 14 +0.82%

US Sectors

Fri 30 Jun 23, 8:30am (AEDT)

Sector Chg %
Financials +1.67%
Materials +1.27%
Energy +1.11%
Industrials +0.94%
Real Estate +0.87%
Health Care +0.65%
Information Technology +0.13%
Consumer Discretionary +0.06%
Utilities -0.05%
Consumer Staples -0.15%
Communication Services -0.63%

S&P 500 Session Chart

S&P 500 Session Chart - Thu 29 June
A rally was sparked two hours before the close and the chart never looked back. (Source: TradingView)

MARKETS

  • Tiger Global turned down hundreds of bids for private asset, seeing offers as too low

  • Fed stress test shows big US banks can withstand severe recession and CRE turmoil

  • Bank of America sitting on $100B in unrealized losses at end of Q1

  • AI driving a fresh wave of corporate acquisitions as businesses seek to build their strategies

  • M&A deal volumes down more than $1T so far in 2023, smallest first half total in a decade

STOCKS

  • Morgan Stanley's board to focus on selection of next CEO at summer and fall meetings

  • Polestar the latest EV maker to plan to adopt Tesla charging standard

  • Google set to remove news links in Canada amid new law requiring payment to publishers

  • China's Shein confidentially files for IPO; could come before year's end

ECONOMY

  • World's top central bankers flag more tightening in response to still-elevated inflation

  • Sweden's central bank hiked rates by 0.25% and signaled at least one more hike this year

  • Spanish inflation cools in June, falling below 2% for the first time in two-years

  • Former IMF official says China likely to underwhelm on stimulus

Industry ETFs

Fri 30 Jun 23, 8:30am (AEDT)

Description Last Chg %
Commodities
Steel 63.95 +2.03%
Uranium 21.49 +0.61%
Strategic Metals 81.6 +0.44%
Lithium & Battery Tech 63.6 +0.41%
Copper Miners 37.01 +0.07%
Gold 177.09 -0.11%
Silver 20.72 -0.58%
Industrials
Aerospace & Defense 116.36 +1.40%
Global Jets 21.13 -0.47%
Healthcare
Cannabis 6.49 +0.72%
Biotechnology 125.95 -0.24%
Description Last Chg %
Cryptocurrency
Bitcoin 17.19 +1.78%
Renewables
Hydrogen 9.01 +2.04%
CleanTech 14.42 +1.19%
Solar 68.92 -1.02%
Technology
Cybersecurity 24.14 +1.30%
Electric Vehicles 25.55 +0.89%
Sports Betting/Gaming 17.19 +0.79%
Cloud Computing 19.67 +0.25%
E-commerce 18.22 +0.05%
Semiconductor 499.54 +0.03%
FinTech 21.85 -0.04%
Robotics & AI 28.3 -0.20%
Video Games/eSports 55.3 -0.41%

The Nickel and Aluminium ETFs have been removed and will be replaced by Invesco Agriculture ETF (DBA) and Invesco Construction ETF (PKB). Changes coming soon. A new education piece is out about the above ETF list. If you want to learn more about why this list can be helpful (or you just want to suss what the tickers are) read here.

Charts of the Week

This segment of the morning wrap brings you weekly technical commentary on the ASX 200 and some of the more interesting charts in the market. These are not meant as recommendations. They are for illustrative purposes only. Any discussion of past performance is for educational purposes only. Past performance is not a reliable indicator of future return. Always do your own research. ASX 200 – Back in the zone

ASX Technicals

As quickly as the market broke higher, it faded back into the muck. That’s what we’ve seen over the past week, with the false break up towards 7400 fading back to the bottom side of the range near 7100. With reporting season around the corner, we’re likely to the index grind sideways from here. At least there are some stocks that are trending.

AUB Group (ASX: AUB) – Retest confirmed

AUB Group Technicals

After grinding sideways for an extended period, AUB broke higher recently above the $28 resistance level. The price action has since been back to retest and confirm this breakout region as support and bounce higher. Volumes have been solid and the RSI is not overcooked. The bulls appear as thought they’re willing to carry this one higher.

Overnight broker initiations

  • Emerald Resources (ASX: EMR) initiated OVERWEIGHT at Barrenjoey, price target of $2.50/share

  • CSR (ASX: CSR) initiated HOLD at Bell Potter, price target of $5.60/share

  • ProMedicus (ASX: PME) initiated HOLD at Jefferies, price target of $63/share

Key Events

Trading ex-div:

  • Abacus Property Group (9.4cps)

  • Listings: None

Economic Calendar:

  • 9:30 am – Tokyo Area CPI

  • 11:30 am – Chinese manufacturing PMI

  • 7:00 pm – Eurozoone CPI Flash estimate

  • 10:30 pm – Canada GDP, US core PCE

  • 12:00am – US consumer sentiment

Written By

Chris Conway

Managing Editor

Chris is the Managing Editor at Livewire Markets and Market Index. His passion is equity research, portfolio construction, and investment education. He is also very keen on the powerful processes that can help all investors identify great opportunities and outperform the market, and wants to bring them to life and share them with you.

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