Market Wraps

Morning Wrap: ASX 200 to rise for a fourth straight session, US stocks mixed as tech gains offset broader weakness

Tue 07 Jan 25, 8:35am (AEDT)

ASX 200 futures are trading 14 points higher, up 0.12%, as of 8:30 am AEDT.

The ASX 200 is set to open higher for a fourth straight session after the US dollar index took a breather from a recent two year high as well as continued strength for megacap tech stocks, German inflation re-accelerated amid less favourable base effects and higher services prices, lithium stocks tick higher overnight on several positive catalysts and more macro news to come on Tuesday.

Let's dive in.

Overnight Summary

Tue 07 Jan 25, 8:28am (AEDT)

Name Value % Chg
Major Indices
S&P 500 5,975 +0.55%
Dow Jones 42,707 -0.06%
NASDAQ Comp 19,865 +1.24%
Russell 2000 2,266 -0.09%
Country Indices
Canada 25,000 -0.29%
China 3,207 -0.14%
Germany 20,216 +1.56%
Hong Kong 19,688 -0.36%
India 77,965 -1.59%
Japan 39,307 -1.47%
United Kingdom 8,250 +0.31%
Name Value % Chg
Commodities (USD)
Gold 2,645.1001 -0.36%
Iron Ore 99.44 -
Copper 4.151 +1.90%
WTI Oil 73.42 -0.73%
Currency
AUD/USD 0.6241 +0.39%
Cryptocurrency
Bitcoin (USD) 102,303 +4.09%
Ethereum (AUD) 5,911 +1.53%
Miscellaneous
US 10 Yr T-bond 4.618 +0.48%
VIX 16.45 +1.97%

US Sectors

Tue 07 Jan 25, 8:29am (AEDT)

SECTOR % CHG
Communication Services +2.13%
Information Technology +1.44%
Consumer Discretionary +0.61%
Materials +0.03%
Health Care -0.02%
Industrials -0.21%
SECTOR % CHG
Energy -0.41%
Financials -0.42%
Consumer Staples -0.98%
Utilities -1.09%
Real Estate -1.40%

S&P 500 SESSION CHART

SPX 2025-01-07 08-27-25
S&P 500 higher but off best levels (Source: TradingView)

OVERNIGHT MARKETS

  • Major US benchmarks finished mixed and well-below session highs

  • Breadth and participation continue to be weak, masked by the outperformance of Magnificent 7 stocks

  • Tech stocks outperformed, led by Meta (+4.2%), Nvidia (+3.4%), Alphabet (+2.5%) and Amazon (+1.5%)

  • Magnificent 7 (plus Broadcom) have seen their earnings revised up an average 5.1% over the past 90 days ,according to DataTrek

  • Equal-weight S&P 500 finished 0.06% lower, underperforming the official benchmark by 61 bps

  • Bitcoin reclaims the US$100,000 level for the first time since 19 December

  • US dollar index moved lower, coming off its recent two-year high after a report that Trump’s tariffs could be less broad than initially thought (WP

  • US natural gas prices soared 10% as winter storms hit output, freezing oil and gas wells (RT)

STOCKS

  • Chip stocks rallied after a record revenue and strong sales outlook from Nvidia server partner Foxconn (RT)

  • EV maker Lucid beat expectations for quarterly deliveries, driven by price cuts and cheaper financing to drive demand (YH)

CENTRAL BANKS

  • Bank of Israel holds rates at 4.5% for 8th straight decision on high inflation and economic uncertainty (RT)

  • Thailand central bank says its ready to adjust policy if the outlook changes as the economy faces heightened uncertainty (RT)

POLITICS & GEOPOLITICS

  • Trudeau resignation opens door for Trump ‘going easy on trade tariffs’ with Canada (YH)

ECONOMY

  • German inflation jumped to a higher-than-expected 2.9% in December vs. 2.6% consensus, likely driven by higher prices for CO2 emissions and insurance services (RT)

Industry ETFs

Tue 07 Jan 25, 8:27am (AEDT)

Name Value % Chg
Commodities
Strategic Metals 41.24 +3.05%
Steel 58.76 +1.66%
Copper Miners 39.595 +1.63%
Uranium 29.295 +1.58%
Silver 27.225 +0.91%
Lithium & Battery Tech 41.01 +0.81%
Gold Miners 34.58 -1.20%
Industrials
Global Jets 25.595 +1.85%
Construction 77.21 +0.32%
Agriculture 26.43 -0.23%
Aerospace & Defense 144.86 -0.92%
Healthcare
Biotechnology 134.29 +0.10%
Name Value % Chg
Cryptocurrency
Bitcoin 24.95 +3.96%
Renewables
Hydrogen 26.54 +4.74%
CleanTech 7.44 +3.19%
Solar 35.55 +1.14%
Technology
Semiconductor 228.91 +2.89%
Electric Vehicles 23.91 +2.27%
E-commerce 28.0082 +0.97%
FinTech 32.46 +0.81%
Robotics & AI 33.18 +0.70%
Cloud Computing 24.54 +0.57%
Sports Betting/Gaming 19.111 +0.32%
Video Games/eSports 85.41 -0.05%
Cybersecurity 32.45 -0.12%

ASX TODAY

  • ASX 200 set to open higher for a fourth straight session

  • ASX 200 finished 0.08% higher on Monday, down from session highs of 0.51% – So a little bit of fading action as it attempts to reclaim the 50-day

  • Tech stocks performed well on Monday, led by Xero (+1.6%), Life360 (+1.3%) and Wisetech (+1.3%). The tech-led overnight session may continue to present positive flows for the sector

WHAT TO WATCH TODAY

  • Lithium: VanEck Rare Earths and Strategic Metals ETF up 2.9% overnight, trading at the highest level since 16 December 2024. The move likely reflected a combination of higher Chinese lithium futures (up 1.5% on Monday to 776,600 yuan a tonne), weaker US dollar, better-than-expected EV deliveries from Lucid and positive earnings revisions for Tesla (Q4 earnings estimates up 16.9% over the past 90 days). This could help names like Pilbara Minerals stabilise from recent lows

  • Materials: Weaker US dollar helped several commodities and related ETFs tick higher overnight. The Materials sector (XMJ) tumbled another 1.3% on Monday to close at its lowest level since September 2024.

BROKER MOVES

  • Amcor PLC upgraded to Buy from Neutral; target price up to $19 from $17 (Citi)

  • Car Group reiterated Buy; target price up to $42.40 from $39.50 (Citi)

Key Events

Stocks trading ex-dividend: 

  • Tue 7 Jan: None

  • Wed 8 Jan: Katana Capital (KAT) – 0.40%

  • Thu 9 Jan: Turners Automotive Group (TRA) – 1.36%

  • Fri 10 Jan: None

Other ASX corporate actions today: 

  • Dividends paid: None 

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEDT):

  • 10:30 am: Australia Building Permits (Nov)

  • 8:00 pm: Eurozone Inflation Rate (Dec)

  • 8:00 pm: Eurozone Unemployment Rate (Nov)

  • 11:30 pm: Canada Balance of Trade (Nov)

  • 1:00 am: US ISM Services PMI (Dec)

  • 1:00 am: US JOLTs Job Openings (Nov)

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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