ASX 200 futures are trading 26 points higher, up 0.31%, as of 8:30 am AEDT.
The S&P 500 and Nasdaq finished the week on a positive note and logged a fourth straight week of gains, US nonfarm payrolls smash analyst expectations and reiterate that the jobs market is in a good place, lithium stocks soared on news that Rio Tinto is looking to acquire Arcadium Lithium and expect a dull session as most of the country is off for Labour Day.
Let's dive in.
Mon 07 Oct 24, 8:30am (AEDT)
Mon 07 Oct 24, 8:30am (AEDT)
US benchmarks finished higher and near best levels
S&P 500 and Nasdaq finished narrowly higher for the week, marking a fourth consecutive week of gains
US weekly recap – S&P 500 +0.22%, Nasdaq +0.10%, Dow +0.09%, Russell (-0.54%)
Today’s big story – US September nonfarm payrolls almost doubled consensus expectations, sending bond yields sharply higher
US 10 year-yield up 12 bps, a fresh two-month high and settled just shy of the key 4.0% level
Brent crude eked out a small gain, finishing the week 8.4% higher, marking its best week since March 2023
Middle East tensions remain in play, with the market expecting some form of response from Israel after Iran’s missile attack last week
Q3 earnings season may be the largest factor in whether the equity-market rally can continue (BBG)
China's stock rally may prove to be false dawn, recalling memories of 2015 bust (BBG)
Strategists remain sceptical of China's equity prospects (BBG)
Rally in US-listed China shares driven more by fresh buying than short covering (BBG)
Volkswagen CEO Blume bracing for retaliatory tariffs from China (BBG)
Taiwan's Foxconn tops estimates to post highest-ever revenue for the third quarter amid strong demand for AI servers (RT)
Cisco to invest in AI cloud-computer provider CoreWeave, part of transaction valuing company at US$23bn (Bloomberg)
Apollo nearing deal to acquire aerospace parts maker Barnes Group for more than $45 a share (Reuters)
Hot September US jobs data sparking widespread second-guessing of Fed's recent cut (CNN)
BOJ's pursuit of rate hikes faces challenge as politics and yen outlook complicate the policy outlook (RT)
BoE chief economist Pill warns against cutting rates too fast (RT)
ECB's Centeno says Eurozone inflation now very near to central bank's 2% target (BBG)
Mon 07 Oct 24, 8:25am (AEDT)
Arcadium Lithium in talks with Rio Tinto about a potential buyout, valuing the lithium miner at US$4-6bn or higher, Arcadium shares up 35% after hours (RT)
Arcadium Lithium shareholder Blackwattle Investment Partners’ urged the company to reject any bid that doesn’t sit around the US$8bn mark (AFR)
Bowen Coking Coal believed to have secured at least $30m as part of a $70m raise to revive the business (The Aus)
IPH 15.6m share block trade crosses at $5.40, representing 5.8% of the company
SiteMinder holder First Sentier Investors decreases holding to 7.95% from 12.02% (SDR)
Low volumes: NSW, ACT, Queensland and South Australia are off for Labour Day, which might result in subdued volumes and stocks just chopping sideways after market open
Lithium: Lithium stocks jumped on Rio Tinto's US$5.8bn bid for Arcadium Lithium. While the sector remains a shell of its former self, the bid does offer a valuation floor for the sector. This should see some positive flow for local names, most of which have pullback back over the past two sessions
Food for thought – Good news is good news: Lots of solid US economic data in recent days (blowout nonfarm payrolls, four-week moving average initial claims down to lowest since May and ISM services hit a 19-month high). Historic market performance after catalysts such as a Fed cut, a major geopolitical event etc. – All hinges on the state of the economy. In previous Fed rate cut cycles, the S&P 500's median 12-month return after the first cut was 10%. But if the US economy entered a recession, median performance falls to -15%
We have not received any major broker updates.
Stocks trading ex-dividend:
Mon 7 Oct: Ridley Corporation (RIC) – 1.82%
Tue 8 Oct: Clime Capital (CAM) – 1.65%, Katana Capital (KAT) – 0.42%, MFF Capital Investments (MFF) – 1.83%, Perenti (PRN) – 3.85%, Reece (REH) – 0.65%
Wed 9 Oct: Naos Emerging Opportunities (NCC) – 4.65%
Thu 10 Oct: Duxton Water (D2O) – 2.65%, WAM Active (WAA) – 3.43%
Fri 11 Oct: Turners Automotive Group (TRA) – 1.28%, WAM Research (WAX) – 4.18%
Other ASX corporate actions today:
Dividends paid: Austin Engineering (ANG), Atlas Arteria (ALX), Cleanaway Waste Management (CWY), Generation Development Group (GDG), Ventia Services Group (VNT)
Listing: None
AGMs: None
Economic calendar (AEST):
No major economic announcements.
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