Market Wraps

Morning Wrap: ASX 200 to rise, miners in focus following Federal Budget, GameStop shares close 60% higher

Wed 15 May 24, 8:21am (AEST)

ASX 200 futures are trading 52 points lower, down -0.68% as of 8:30 am AEST.

In some respects, the week really starts tonight with US inflation and retail sales data. Fed Chair Jerome Powell has already signalled that inflation has been higher than previously thought and that he expects rates to remain steady.

On the local front, the Federal Budget will put the miners in focus today after it was confirmed that $24 billion will be given to the sector over the next decade. Look out for names like Fortescue, Mineral Resources, IGO, Pilbara Minerals, Liontown Resources, the uranium miners, and even conglomerates like Wesfarmers who have exposure to this megatrend.

Let's dive in.

Overnight Summary

Mon 27 May 24, 8:20am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,305 +0.70%
Dow Jones 39,070 +0.01%
NASDAQ Comp 16,921 +1.10%
Russell 2000 2,070 +1.04%
Country Indices
Canada 22,321 +0.54%
China 3,089 -0.88%
Germany 18,693 +0.01%
Hong Kong 18,609 -1.38%
India 75,410 -0.01%
Japan 38,646 -1.17%
United Kingdom 8,318 -0.26%
Name Value % Chg
Commodities (USD)
Gold 2,334.5 -0.12%
Iron Ore 117.66 +0.11%
Copper 4.7535 -0.81%
WTI Oil 77.72 +1.11%
Currency
AUD/USD 0.6629 +0.35%
Cryptocurrency
Bitcoin (AUD) 103,344 -0.87%
Ethereum (AUD) 5,803 +2.72%
Miscellaneous
US 10 Yr T-bond 4.467 -0.18%
VIX 11.93 -6.58%

US Sectors

Fri 24 May 24, 8:22am (AEST)

SECTOR % CHG
Information Technology +0.56%
Materials -0.88%
Energy -1.02%
Health Care -1.08%
Communication Services -1.15%
Consumer Staples -1.20%
SECTOR % CHG
Industrials -1.22%
Financials -1.51%
Consumer Discretionary -1.52%
Utilities -1.70%
Real Estate -2.16%

S&P 500 SESSION CHART

SPX Tuesday 14 May 2024
The bottom came three hours before the close and then stocks went on a tear. (Source: TradingView)

OVERNIGHT MARKETS

  • Nasdaq jumps to record close, Dow adds more than 100 points ahead of consumer inflation report

  • Fed Chair Powell says inflation has been higher than thought, expects rates to hold steady

  • European stocks close slightly higher as investors digest U.S. inflation data; Delivery Hero up 26%

  • 10-year Treasury yield wavers after release of fresh inflation data

  • Oil dips as U.S. data suggests inflation is stickier than expected

  • Gold regains ground following hot inflation report

INTERNATIONAL STOCKS

  • Google rolls out its most powerful AI models as competition from OpenAI heats up

  • Reddit shares close near record after two-day rally driven by meme stocks

  • Alibaba shares fall 7% after the Chinese tech giant posts 86% drop in profit

  • AMC completes $250 million stock sale during meme rally, shares jump 30%

  • GameStop jumps for a second day (up 60%!), but ends session well off highs as meme enthusiasm starts to fade

  • Sony reports 7% drop in annual profit as PlayStation 5 sales miss trimmed target

CENTRAL BANKS

  • Latest Reuters poll shows two-third of economists think Fed will cut starting in September

  • BoE chief economist Pill sees rate cut possible over summer; says labour market remains tight

ECONOMY

  • SF Fed study says corporate price gouging not primary driver of US inflation

  • Wall Street economists warn US recession could trigger debt crisis

  • Strong Eurozone wage growth poses a challenge for ECB policy easing plans

  • ZEW survey shows German economic sentiment grows in May

  • UK jobs data show ongoing cooling, boosting BoE rate cut hopes

  • Japan CPGI in April steady as weak yen pushes up import costs

  • South Korea terms of trade improve for fifth consecutive month in April

Industry ETFs

Thu 16 May 24, 8:21am (AEST)

Name Value % Chg
Commodities
Silver 27.12 +3.79%
Gold Miners 35.91 +1.44%
Steel 72.55 +1.08%
Uranium 31.46 +1.03%
Copper Miners 49.68 -0.06%
Lithium & Battery Tech 44.92 -1.90%
Strategic Metals 54.63 -2.36%
Industrials
Construction 74.65 +2.68%
Agriculture 23.86 +0.68%
Aerospace & Defense 134.36 -0.22%
Global Jets 21.07 -0.52%
Healthcare
Biotechnology 137.34 +1.38%
Cannabis 5.15 +0.78%
Name Value % Chg
Cryptocurrency
Bitcoin 26.84 +7.45%
Renewables
Hydrogen 6.04 +0.83%
Solar 43.73 -0.09%
CleanTech 9.34 -0.11%
Technology
Semiconductor 230.67 +2.81%
Sports Betting/Gaming 17.7839 +1.80%
Cybersecurity 29.79 +1.50%
Robotics & AI 31.95 +1.46%
Cloud Computing 20.58 +1.23%
FinTech 26.26 +1.08%
E-commerce 24.83 +0.36%
Electric Vehicles 24.83 +0.32%
Video Games/eSports 67.86 -0.80%

Key Events

Upcoming floats and listings

  • Sun Silver – 15 May @ 11am

Companies trading ex-dividend:

  • Sandon Capital Investments (SNC) – 15 May - $0.028

  • Autosports Group (ASG) – 16 May - $0.10

Economic calendar (AEST):

  • 11:30am – AUD – Wage price index

  • 4:45pm – EUR – French Final CPI

  • 7:00pm – EUR – Flash employment change, flash GDP, industrial production

  • Tentative – EUR, GBP – 30-year and 10-year bond auction in Germany and England

  • 10:30pm – USD – Core CPI, core retail sales, CPI m/m and y/y, Empire State manufacturing, retail sales

This Morning Wrap was written by Hans Lee and Chris Conway.

Written By

Hans Lee

Senior Editor

Hans is one of the Senior Editors at Livewire Markets and Market Index. He created Signal or Noise and leads the team's coverage of the global economy and fixed income markets.

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