ASX 200 futures are trading 38 points higher, up 0.45%, as of 8:30 am AEDT.
Major US benchmarks continued to tick higher overnight – with the S&P 500 and Dow Jones both logging all-time highs, theme of cyclical rotation into sectors like Utilities and Discretionary continued, Trump's tariff threat placed upward pressure on the US Dollar and bond yields and trading updates/earnings from QBE Insurance and Web Travel Group.
Let's dive in.
Wed 27 Nov 24, 8:25am (AEDT)
Wed 27 Nov 24, 8:25am (AEDT)
Major US benchmarks finished higher, finished near best levels
Equal-weight S&P 500 underperformed the official benchmark by 56 bps as gains from Big Tech helped cushion the market at the index level
Overnight upside continues to highlight a cyclical rotation into sectors like Utilities and Discretionary
Recent strength in retail stocks has received some attention, with S&P Retail ETF up ~12% since November, underpinned by decent earnings, Black Friday optimism, macro surprise momentum and lower oil prices
Equity volatility heading for its lowest annual average since 2019 despite broad global risks (BBG)
French yield gap over German bonds surges to highest since 2012 euro crisis, could spike further if government collapses (BBG)
Automaker shares fall after Trump threatens 25% tariff on Mexico and Canada, 10% on China (CNBC)
Biden administration proposing rule that would require the US government to cover weight-loss drugs (BBG)
Apple runs into regulatory hurdles in China with AI rollout for iPhones (FT)
Kohl’s shares dip 17% after the retailer cut its sales outlook amid an uncertain holiday backdrop (CNBC)
Best Buy shares fall 4.8% after slashing its full-year sales forecast, now expects comparable same-store sales to fall 2.5-3.5%
Fed November meeting minutes show broad support for gradually lowering rates, while some saw pause or faster cuts as an option (BBG)
Chicago Fed's Goolsbee sees rate cuts continuing, but pace to be determined by outlook and conditions (BBG)
ECB VP de Guindos says more rate cuts are on the way if policymakers' forecasts for inflation hold (BBG)
RBNZ expected to cut cash rate by another 50 bp this week (BBG)
Trump says first executive orders will include an additional 10% tariffs on China goods, above any additional tariffs, as well as 25% tariffs on Mexico and Canada (RT)
Mexican president calls for cooperation with US on trade, warns of risks tariffs pose to companies (BBG)
Biden, France's Macron to announce Israel-Hezbollah ceasefire (RT)
Russian forces advancing in Ukraine at the fastest rate since the early days of the 2022 invasion (RT)
Japan's service-sector inflation steady near 3%, keeps alive BOJ rate hike (RT)
South Korean consumers' economic outlook deteriorates at fastest pace since mid-2022 (BBG)
India Q2 GDP growth forecast to have slowed to 1.5 year low (RT)
Wed 27 Nov 24, 8:25am (AEDT)
City Chic Collective reaffirms FY revenue guidance of $142-160m vs. $144m consensus, expects higher average selling prices and gross margin trends from 2H24 and early FY25 (CCX)
QBE Insurance issues trading update, GWP up 2% year-on-year for nine months to 30 September, driven by Group-wide renewable premium rate increase of 5.9%, reiterates FY24 outlook (QBE)
Ramsay Health Care CEO says the company is not going to sell offshore assets despite investor pressure, won't rule out property sales (AFR)
Web Travel Group intends to conduct on-market share buyback of up to $150m, commencing December 2024 (WEB)
Web Travel Group reports 1H25 underlying EBITDA of $70m vs. $75.7m consensus with no interim dividend, full-year EBITDA guidance of $117-122m vs. $114m consensus, TTV up 23% for first 7 weeks of trading for 2H25 (WEB)
Pretty quiet in terms of overnight lead and current announcements – cyclical rotation to continue to benefit sectors like Utilities, Real Estate, Staples etc. while resources underperform (iron ore, copper and nickel-related stocks all pulled back overnight)
GQG Partners initiated Buy with $3.30 target (JARD)
Pinnacle Investment initiated Neutral with $22.60 target (JARD)
Qantas downgraded to Neutral from Buy; however target up to $9 from $8.60 (UBS)
Qualitas initiated Buy with $3.75 target (JARD)
The Lottery Corp upgraded to Buy from Hold; target up to $5.80 from $5.09 (JEF)
Webjet Group upgraded to Buy; target up to $1.10 from $0.95 (JEF)
Webjet Group initiated Buy with $1.32 target (OM)
Stocks trading ex-dividend:
Wed 27 Nov: ALS (ALQ) – 1.18%, Graincorp (GNC) – 3.00%, Whitefield Industrials (WHF) – 1.83%.
Thu 28 Nov: 360 Capital Mortgage REIT (TCF) – 0.86%, Gryphon Capital Income Trust (GCI) – 0.66%, KKR Credit Income Fund (KKC) – 0.73%, , Perpetual Credit Income Trust (PCI) – 0.59%, Red Hill Minerals (RHI) – 6.82%, Technology One (TNE) – 0.57%
Fri 29 Nov: Aristocrat Leisure (ALL) – 0.63%, , Metrics Income Opportunities Trust (MOT) – 0.52%, Metrics Master Income Trust (MXT) – 0.61%, Metrics Real Estate Multi-Strategy Fund (MRE) – 0.41%, Pengana International Equities (PIA) – 1.15%.
Other ASX corporate actions today:
Dividends paid: Brickworks (BKW), Global Data Centre Group (GDC)
Listing: None
Earnings: Web Travel Group (WEB)
AGMs: Harvey Norman (HVN), Liontown Resources (LTR), Lynas Rare Earths (LYC), NRW Holdings (NWH)
Economic calendar (AEDT):
10:30 am: Australia Monthly CPI Indicator (Oct)
11:30 pm: US Core PCE Index (Oct)
11:30 pm: US Durable Goods Orders (Oct)
11:30 pm: US Q3 GDP
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