Market Wraps

Morning Wrap: ASX 200 to rise, Wall Street ends mixed + Brokers weigh in on lithium and gold stocks

Tue 09 Jul 24, 8:36am (AEST)

ASX 200 futures are trading 17 points higher, up 0.21% as of 8:30 am AEST.

US stocks wavered to a mixed close on Wall Street, gold and copper prices give back last Friday's big gains, Taiwan Semiconductor joins the US$1 trillion club and a long list of broker upgrades/downgrades across the lithium and gold sector.

Let's dive in.

Overnight Summary

Tue 09 Jul 24, 8:23am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,573 +0.10%
Dow Jones 39,345 -0.08%
NASDAQ Comp 18,404 +0.28%
Russell 2000 2,039 +0.59%
Country Indices
Canada 22,126 +0.30%
China 2,922 -0.93%
Germany 18,472 -0.02%
Hong Kong 17,524 -1.55%
India 79,960 -0.05%
Japan 40,781 -0.32%
United Kingdom 8,193 -0.13%
Name Value % Chg
Commodities (USD)
Gold 2,363.5 -1.43%
Iron Ore 110.02 -1.16%
Copper 4.618 -0.73%
WTI Oil 82.33 -1.00%
Currency
AUD/USD 0.6738 -0.07%
Cryptocurrency
Bitcoin (AUD) 84,063 -0.23%
Ethereum (AUD) 4,489 +2.11%
Miscellaneous
US 10 Yr T-bond 4.269 -0.07%
VIX 12.37 -0.88%

US Sectors

Tue 09 Jul 24, 8:24am (AEST)

SECTOR % CHG
Information Technology +0.72%
Materials +0.28%
Real Estate +0.17%
Industrials +0.13%
Utilities +0.07%
Consumer Discretionary -0.01%
SECTOR % CHG
Health Care -0.10%
Financials -0.15%
Consumer Staples -0.21%
Energy -0.59%
Communication Services -1.01%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 ticks higher amid choppy trade (Source: TradingView)

OVERNIGHT MARKETS

  • Major US benchmarks mostly ticked higher overnight but off best levels

  • Big tech was mostly lower while small caps, miners and real estate stocks outperformed

  • Relatively quiet session ahead of US inflation data and kickoff of earnings season

  • Gold reversed almost the entirety of last Friday’s 1.5% gain

  • High bar for Q2 earnings season, market currently expecting Q2 S&P earnings growth of 8.8%, the highest since the 9.4% print in 1Q22 (FT)

  • Banks kick off US earnings season this Friday, with JPMorgan, Citi and Wells Fargo scheduled to report

  • Banking earnings forecast to fall 10% year-on-year in Q2 amid sluggish loan growth, according to FactSet 

  • French stocks see a relief rally following what many describe as "less bad outcome" from the Sunday election (Bloomberg)

  • Bond traders bet US yield curve will normalise toward a steeper slope ahead of US CPI data this week (Bloomberg)

STOCKS

  • Boeing to plead guilty to criminal conspiracy in connection with two fatal crashes of its 737 Max jetliner (Bloomberg)

  • Deal-making recovery expected to boost Q2 earnings for Wall Street banks (FT)

  • Carlsberg agrees to buy London-listed soft drinks maker Britvic for £3.3bn (FT)

  • Consumer-facing companies still feeling sharp pushback from customers despite easing inflation (CNBC)

  • Taiwan Semiconductor Manufacturing’s market cap hits US$1tn, expects to launch new chips in Q4 (Bloomberg)

POLITICS

  • Uncertainty looms for France after shock left-wing alliance gaining most seats (FT)

  • More House Democrats want Biden to step aside from presidential race (FT)

GEOPOLITICS

  • Israeli PM Netanyahu says any Gaza deal must let Israel resume fighting until war goals are met (Reuters)

  • EU envoy says Beijing making it "very difficult" for Brussels to deepen ties (Reuters)

  • NATO allies to pledge €40bn for Ukraine amid domestic turmoil at this week's summit (FT)

ECONOMY

  • Eurozone economic sentiment weakens after eight consecutive increases (Reuters)

  • German exports fell more than expected in June amid weak demand from China, US and Europe (Reuters)

  • Japan's base pay climbs 2.5% in May, the fastest pace in 31 years but inflation-adjusted wages fell for a record 26th straight month (Reuters)

Industry ETFs

Tue 09 Jul 24, 8:23am (AEST)

Name Value % Chg
Commodities
Lithium & Battery Tech 40.05 -0.12%
Steel 67.0613 -0.28%
Gold Miners 36.1 -0.47%
Uranium 29.43 -0.88%
Strategic Metals 43.59 -0.98%
Silver 28.13 -1.23%
Copper Miners 47.11 -1.96%
Industrials
Aerospace & Defense 133.23 +0.63%
Construction 66.6 +0.47%
Global Jets 19.22 +0.37%
Agriculture 24.01 -0.74%
Healthcare
Biotechnology 137.73 +1.12%
Name Value % Chg
Cryptocurrency
Bitcoin 19.77 +0.05%
Renewables
Solar 40.45 +1.10%
Hydrogen 27.41 +0.59%
CleanTech 8.16 -
Technology
Semiconductor 259.59 +1.90%
Video Games/eSports 68.08 +0.55%
Robotics & AI 31.36 +0.48%
Electric Vehicles 24.32 +0.25%
Sports Betting/Gaming 17.29 +0.17%
E-commerce 23.8 -0.29%
Cloud Computing 19.73 -0.55%
Cybersecurity 29.73 -0.67%
FinTech 25.23 -0.79%

ASX TODAY

  • ASX 200 set to open higher after a sharp 0.7% pullback on Monday

  • Hanwha unlikely to launch hostile takeover bid for Austal (The Aus)

  • Ramelius confirms it is no longer in any transaction discussions with Westgold (WGX)

 WHAT TO WATCH TODAY

  • Not a whole lot going on today – A few of yesterday's winners like gold and copper set to pull back sharply

  • UBS says retail wealth fund flows rose 5.6% quarter-on-quarter to $1.19tn, with a vast majority of FUM growth attributed to investment gains during a positive period for market returns

BROKER MOVES

  • Core Lithium upgraded to Neutral from Sell but target cut to $0.10 from $0.12 (Jarden)

  • Clinuvel Pharma downgraded to Hold from Add; target remains $16 (Morgans)

  • Gold Road downgraded to Neutral from Overweight with $1.90 target (JPMorgan)

  • IGO upgraded to Neutral from Underweight with $6.40 target (JPMorgan)

  • Iluka Resources upgraded to Overweight from Neutral with $8.20 target (JPMorgan)

  • Macquarie downgraded to Hold from Outperform; target up to $201 from $196 (CLSA)

  • Newmont downgraded to Neutral from Overweight with $66 target (JPMorgan)

  • Pilbara Minerals upgraded to Neutral from Underweight with $2.95 target (JPMorgan)

  • Regis Resources downgraded to Neutral from Buy but target increased to $1.90 from $1.70 (Citi)

Key Events

Companies trading ex-dividend: 

  • Tue 9 July: Katana Capital (KAT) – $0.05, Red Hill Minerals (RHI) – $1.50

  • Wed 10 July: None

  • Thu 11 July: Transmetro Corp (TCO) – $0.05, Westgold Resources (WGX) – $0.013

  • Fri 12 July: None

  • Mon 15 July: None

Other ASX corporate actions today: 

  • Dividends paid: None 

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEST):

  • 10:30 am: Australia Consumer Confidence (Jul)

  • 11:30 am: Australia Business Confidence (Jul)

  • 12:00 am: Fed Chair Powell Testimony 

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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