Market Wraps

Morning Wrap: ASX 200 to rise, S&P 500 and Nasdaq close at all-time highs, Gold stocks to rally

Thu 04 Jul 24, 8:37am (AEST)

ASX 200 futures are trading 73 points higher, up 0.94% as of 8:30 am AEST.

The S&P 500 and Nasdaq scored another all-time high as softer-than-expected economic data stokes hope for a rate cut. Fortunately, the local sharemarket is set for a strong open thanks to easing bond yields and firmer commodity prices overnight.

Let's dive in.

Overnight Summary

Thu 04 Jul 24, 8:25am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,537 +0.51%
Dow Jones 39,308 -0.06%
NASDAQ Comp 18,188 +0.88%
Russell 2000 2,037 +0.14%
Country Indices
Canada 22,224 +1.23%
China 2,982 -0.49%
Germany 18,375 +1.16%
Hong Kong 17,979 +1.18%
India 79,987 +0.69%
Japan 40,581 +1.26%
United Kingdom 8,171 +0.61%
Name Value % Chg
Commodities (USD)
Gold 2,369.3999 +1.54%
Iron Ore 113.06 +2.48%
Copper 4.5335 +2.59%
WTI Oil 83.88 +1.29%
Currency
AUD/USD 0.6705 +0.59%
Cryptocurrency
Bitcoin (AUD) 89,761 -2.78%
Ethereum (AUD) 4,917 -3.54%
Miscellaneous
US 10 Yr T-bond 4.355 -1.83%
VIX 12.09 +0.50%

US Sectors

Thu 04 Jul 24, 8:25am (AEST)

SECTOR % CHG
Information Technology +1.48%
Materials +0.81%
Utilities +0.63%
Energy +0.44%
Industrials +0.40%
Consumer Discretionary +0.32%
SECTOR % CHG
Communication Services +0.19%
Real Estate -0.04%
Financials -0.11%
Consumer Staples -0.12%
Health Care -0.73%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 trends higher to close at best levels (Source: TradingView)

OVERNIGHT MARKETS

  • S&P 500 and Nasdaq both posted fresh record highs, with notable gains from Tesla (+6.5%), Nvidia (+4.5%) and Broadcom (+4.3%)

  • Relatively quiet trading session with an early close, ahead of tomorrow’s Fourth of July holiday

  • Equal-weight S&P 500 underperformed the official benchmark by 47 bps – laggards included banks, staples and healthcare stocks 

  • Bond yields extended to a two-day reprieve, the US-10 year down to 4.35% from almost 4.50% on Monday

  • Traders ramp up Trump-fueled bet on higher long term US bond yields on potential return to White House (Bloomberg)

  • Yen hits fresh 38-year trough against US dollar (Reuters)

  • Fed minutes note slowing economy, stress need for greater confidence that inflation is moving sustainably towards the 2% target (Reuters)

  • Goldman Sachs says hedge funds dumped European stocks in June on political turmoil, reversing May's buying trend (Bloomberg)

  • WTI hits two month high after biggest stockpile draw since Jul-23 (Bloomberg)

STOCKS

  • JPMorgan strategist Kolanovic to leave bank (Bloomberg)

  • Jeff Bezos to sell nearly US$5bn in Amazon shares, bringing total 2024 sales to more than US$13bn (FT)

GEOPOLITICS

  • US to announce additional US$2.3bn arms package for Ukraine (Reuters)

  • US adds six more companies to trade restrictions list with some linked to training of China's military (CNBC)

  • US allies allege China for developing attack drones for Russia (Bloomberg)

  • EU countries wavering over whether to back additional tariffs on Chinese-built EVs (Reuters)

  • EU working on a proposal to impose import duties on cheap goods from Chinese online retailers (Bloomberg)

POLITICS

  • President Biden reportedly considering whether to continue reelection bid (NY Times)

  • White House denies reports Biden is considering dropping out (RollingStone)

  • Biden blames jet lag on debate performance (Bloomberg)

  • UK election enters final days as polls point to heavy defeat for PM Sunak (London Times)

  • France's Le Pen seeks majority, accuses Macron of 'coup plot' over top jobs for allies (Bloomberg)

ECONOMY

  • US ISM services printed at 48.8 in June, below consensus 52.5 and prior reading of 53.8 – ISM services is now back in contraction territory, with new orders logging a steep fall, prices paid index ticked lower and employment index contracted for a sixth time in seven months (Reuters)

  • China's services activity growth hits 8-month low, Caixin PMI shows (Reuters)

  • Eurozone PMIs show June business growth slowed with strong services unable to offset weak manufacturing activity (Reuters)

  • UK services PMI cools by less than expected, still ebbed to a seven-month low (Reuters)

  • Japan service activity contracts for first time in two years (Reuters)

  • Australian retail sales jump 0.6% month-on-month in May, above 0.2% consensus and heightens risk of RBA rate hike (Bloomberg)

Industry ETFs

Thu 04 Jul 24, 8:25am (AEST)

Name Value % Chg
Commodities
Lithium & Battery Tech 40.49 +3.82%
Gold Miners 35.28 +3.70%
Copper Miners 47.22 +3.46%
Strategic Metals 44.25 +3.39%
Silver 27.84 +3.23%
Uranium 29.83 +3.22%
Steel 67.89 +1.60%
Industrials
Global Jets 19.65 +0.98%
Construction 66.79 +0.54%
Aerospace & Defense 133.15 +0.47%
Agriculture 24.03 +0.25%
Healthcare
Biotechnology 135.09 -0.68%
Name Value % Chg
Cryptocurrency
Bitcoin 21.16 -2.44%
Renewables
Hydrogen 27.0 +5.51%
CleanTech 8.16 +4.75%
Solar 40.54 +4.00%
Technology
Electric Vehicles 24.01 +1.69%
Semiconductor 254.26 +1.67%
Sports Betting/Gaming 17.19 +1.60%
Video Games/eSports 67.33 +0.99%
Robotics & AI 31.09 +0.97%
FinTech 25.43 +0.55%
E-commerce 23.83 +0.29%
Cybersecurity 29.69 +0.13%
Cloud Computing 19.77 -0.05%

ASX TODAY

  • ASX 200 set for a strong open following a strong lead from Wall Street, easing bond yields and an uptick in commodity prices

  • Boss Energy set to ship first U308 from Honeymoon (BOE)

  • MMA Offshore’s $1bn takeover bid receives FIRB clearance (MRM)

  • New Hope launches $300m unsecured convertible notes due 2029, conversion price is 30-35% above the reference share price of $5.1 per share (NHC)

  • Regal Partners estimates 1H24 performance fee revenue of $55-56m, funds under management at 30-Jun at $12.2bn, up from $12.09bn in the previous quarter (RPL)

 WHAT TO WATCH TODAY

  • Gold: Gold prices up 1.03% overnight to US$2,356 and the Gold Miners ETF rallied 3.7% to a near one month high. NYSE-listed Newmont finished 4.1% higher. Local gold names should be in for a pretty strong session.

  • Copper: Copper prices also ticked noticeably higher, up 2.6% to US$4.52/lb and the Copper Miners ETF (+3.4%) rallied to a one month high overnight.

  • Lithium: NYSE-listed Arcadium Lithium up 7.4% and the Rare Earths/Strategic Metals ETF finished 3.3% higher. Interestingly, Chinese lithium carbonate futures were relatively unchanged on Wednesday, down 0.3% to 94,550 yuan a tonne.

BROKER MOVES

  • CSL upgraded to Buy from Neutral; target increased to $335 from $305 (Citi)

  • Ebos Group upgraded to Neutral from Sell but target decreased to $31.50 from $33 (Citi)

  • Guzman y Gomez initiated Add with $30.80 target price (Morgans)

Key Events

Companies trading ex-dividend: 

  • Thu 4 July: Clime Capital (CAM) – $0.014

  • Fri 5 July: None

  • Mon 8 July: Collins Foods (CKF) – $0.155

  • Tue 9 July: None

  • Wed 10 July: None

Other ASX corporate actions today: 

  • Dividends paid: Incitec Pivot (IPL) – $0.043, AFT Pharmaceuticals (AFP) – $0.009  

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEST):

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

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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