Morning Wrap: ASX 200 to rise, S&P 500 flat, ECB cuts rates for first time since 2019
ASX 200 futures are trading 22 points higher, up 0.18% as of 8:30 am AEST.
In this article
ASX 200 futures are trading 22 points higher, up 0.18% as of 8:30 am AEST.
The S&P 500 and Nasdaq finished around breakeven as Nvidia ticked back below US$3 trillion market cap, the European Central Bank cut interest rates for the first time in almost five years and commodity prices continue to tick higher after recent drawdowns.
Let's dive in.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
 S&P 500 | 5,353 | -0.02% |
Dow Jones | 38,886 | +0.20% |
NASDAQ Comp | 17,173 | -0.09% |
Russell 2000 | 2,049 | -0.70% |
Country Indices | ||
 Canada | 22,229 | +0.38% |
 China | 3,049 | -0.54% |
 Germany | 18,653 | +0.41% |
 Hong Kong | 18,477 | +0.28% |
 India | 75,075 | +0.93% |
 Japan | 38,704 | +0.55% |
 United Kingdom | 8,285 | +0.47% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 2,390.8999 | +0.65% |
 Iron Ore | 108.5 | +1.38% |
 Copper | 4.678 | +1.56% |
 WTI Oil | 75.55 | +2.00% |
Currency | ||
 AUD/USD | 0.6668 | +0.27% |
Cryptocurrency | ||
 Bitcoin (AUD) | 106,044 | -0.67% |
 Ethereum (AUD) | 5,696 | -1.26% |
Miscellaneous | ||
US 10 Yr T-bond | 4.281 | -0.19% |
VIX | 12.58 | -0.40% |
US Sectors
Sector | % Chg |
|---|---|
| Consumer Discretionary | +0.97% |
| Energy | +0.55% |
| Consumer Staples | +0.35% |
| Health Care | +0.33% |
| Communication Services | +0.21% |
| Real Estate | +0.19% |
Sector | % Chg |
|---|---|
| Materials | +0.08% |
| Financials | 0.00% |
| Information Technology | -0.47% |
| Industrials | -0.60% |
| Utilities | -1.03% |
S&P 500 SESSION CHART
S&P 500 chops around to close at breakeven (Source: TradingView)
OVERNIGHT MARKETS
Major US benchmarks finished around breakeven after yesterday’s strength that pushed the S&P 500 and Nasdaq to record highs
Nvidia weighed (-1.1%) and eased back below US$3 trillion market cap
AI enthusiasm offset by concentration concerns (Microsoft, Nvidia and Apple account for ~20% of the S&P 500) as well as growth slowdown concerns
Resource-related equities ticked higher, including gold, uranium and copper
Upcoming seasonal tailwind as the first 15 days of July have been the best two-week trading period for US markets since 1928, according to Goldman Sachs (Bloomberg)
Bonds tracking for longest daily winning streak since late 2023 (Bloomberg)
INTERNATIONAL STOCKS
GameStop and other meme stocks surge as Roaring Kitty schedules YouTube livestream for Friday (Bloomberg)
DOJ, FTC move forward with antitrust probe into roles played by Microsoft, OpenAI and Nvidia in AI industry (NY Times, Politico)
Intel, AMD, Qualcomm and Nvidia battle to get latest processes into next wave of AI enabled PCs (FT)
TSMC hits record high amid positive news across chip industry, AI demand surges (WSJ
Lululemon tops quarterly estimates on solid China demand, says consumers are still spending but selective of where they spend and what they buy (Reuters)
CENTRAL BANKS
ECB cuts rates for first time in nearly five years, following Canadian and Swiss cuts (FT)
BOC's rate cut may reassure other central banks to move before Fed (Bloomberg, FT)
RBI seen to hold rates steady on Friday amid robust economic growth and uncertain inflation outlook (Bloomberg)
GEOPOLITICS
Israel and Hezbollah tensions escalate (Bloomberg)
Modi wins coalition support to form government for the third term (Bloomberg)
Japan PM Kishida faces narrower path to re-election (Nikkei)
ECONOMY
German industrial orders post fourth consecutive drop vs. expectations of growth (Bloomberg)
Industry ETFs
Name | Value | % Chg |
|---|---|---|
Commodities | ||
| Silver | 28.53 | +4.12% |
| Gold Miners | 36.01 | +3.51% |
| Uranium | 31.15 | +1.96% |
| Copper Miners | 47.38 | +1.85% |
| Steel | 69.16 | +0.38% |
| Lithium & Battery Tech | 43.91 | -0.39% |
| Strategic Metals | 50.14 | -0.69% |
Industrials | ||
| Agriculture | 25.53 | +1.23% |
| Aerospace & Defense | 136.84 | -0.40% |
| Global Jets | 20.04 | -0.55% |
| Construction | 68.97 | -1.06% |
Healthcare | ||
| Biotechnology | 137.6 | -0.33% |
Name | Value | % Chg |
|---|---|---|
Cryptocurrency | ||
| Bitcoin | 26.64 | -1.22% |
Renewables | ||
| Hydrogen | 6.39 | -1.08% |
| CleanTech | 9.66 | -1.73% |
| Solar | 47.51 | -2.10% |
Technology | ||
| Video Games/eSports | 69.31 | +2.08% |
| Sports Betting/Gaming | 17.1 | +0.83% |
| FinTech | 25.75 | +0.63% |
| E-commerce | 23.83 | +0.55% |
| Cloud Computing | 19.69 | +0.51% |
| Cybersecurity | 28.18 | -0.11% |
| Electric Vehicles | 24.79 | -0.48% |
| Robotics & AI | 31.47 | -0.54% |
| Semiconductor | 240.74 | -0.82% |
ASX TODAY
ASX 200 set to open higher buoyed by an overnight uptick in commodity prices
Market appears to be in for a quiet one – Will be interesting to see how CBA trades after yesterday's all-time high while names like Woodside and Fortescue are trading near lows
Gold, silver, copper and oil prices starting to bounce after recent 5-10% drawdowns
Bega Cheese launches strategic review of Queensland peanut processing facility, sale of the business could raise around $20m (The Aus)
Cooper Energy holder First Sentier Investors lifts holding from 9.78% to 13.57% (COE)
Dexus seeking a partner to bid for Powerco stake (AFR)
Droneshield will have 37.8m shares released (at 80 cents vs. yesterday's close of $1.29) as part of tranche 2 of recent placement (DRO)
GQG Partners reports 31-May FUM of $150.1bn vs. $142.0bn a month ago (GQG)
Life360 prices its 5.8m shares US IPO at $27.00 per share through Goldman Sachs, Evercore and UBS (The Aus)
BROKER MOVES
IGO initiated Buy with $8.80 target (Argonaut Securities)
Lendlease downgraded to Sell from Neutral; target cut to $5.56 from $7.10 (UBS)
Mineral Resources upgraded to Buy from Neutral; target up to $82 from $79 (BofA)
Mineral Resources downgraded to Underperform from Outperform; target cut to $75 from $76.50 (CLSA)
Region Group upgraded to Overweight from Equal-weight; target up to $2.50 from $2.44 (Morgan Stanley)
Key Events
Companies trading ex-dividend:
Fri 7 June: None
Mon 10 June: None
Tue 11 June: None
Wed 12 June: Tower (TWR) – $0.024, ALS (ALQ) – $0.196
Thu 13 June: Plato Income Maximiser (PL8) – $0.006, Incitec Pivot (IPL) – $0.043
Other ASX corporate actions today:
Dividends paid: Tamawood (TWD) – $0.11, Tasmea (TEA) – $0.025
Listing: None
Economic calendar (AEST):
1:00 pm: China Balance of Trade (May)
4:00 pm: Germany Balance of Trade (Apr)
10:30 pm: Canada Unemployment Rate (May)
10:30 pm: US Non Farm Payrolls (May)
10:30 pm: US Unemployment Rate (May)
