Market Wraps

Morning Wrap: ASX 200 to tick lower, US market closed, Labour set for historic UK win

Fri 05 Jul 24, 8:34am (AEST)

ASX 200 futures are trading 14 points lower, down -0.18% as of 8:30 am AEST.

US markets were closed in observance of the Independence Day holiday, European stocks ticked higher as voting began in the UK election, commodity prices continued edge higher overnight and expect a pretty boring session for the local sharemarket.

Let's dive in.

Overnight Summary

Fri 05 Jul 24, 8:23am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,537 -
Dow Jones 39,308 -
NASDAQ Comp 18,188 -
Russell 2000 2,037 -
Country Indices
Canada 22,244 +0.09%
China 2,958 -0.83%
Germany 18,450 +0.41%
Hong Kong 18,028 +0.28%
India 80,050 +0.08%
Japan 40,914 +0.82%
United Kingdom 8,241 +0.86%
Name Value % Chg
Commodities (USD)
Gold 2,365.3 -0.17%
Iron Ore 113.06 -
Copper 4.5655 +0.71%
WTI Oil 84.06 +0.21%
Currency
AUD/USD 0.6725 +0.30%
Cryptocurrency
Bitcoin (AUD) 87,033 -2.77%
Ethereum (AUD) 4,700 -4.15%
Miscellaneous
US 10 Yr T-bond 4.355 -
VIX 12.26 -

OVERNIGHT MARKETS

  • US market closed for Fourth of July Independence Day

  • European benchmarks ticked higher as voting began in the UK general election, with polls predicting a historic victory for the Labour party

  • STOXX 600 up 0.6% to a one-week high, FTSE 100 advanced 0.8%, CAC up 0.6% to a near-one month high amid growing efforts by opponents of France’s National Rally to prevent the far-right party from gaining power

  • Top performing European sectors included Financials, Energy and Discretionary

  • 'Trump trade' in focus as strategists weigh market impact of looser fiscal policy and increased protectionism (Bloomberg)

  • Morgan Stanley says buy French stocks before Sunday's second round runoff vote on rebound hopes (Bloomberg)

  • Boom in active bond ETFs could put total inflows on track for US$1tn year, bolstered by retail interest (FT)

STOCKS

  • Tesla cars for first time on Chinese government purchase list (Reuters)

  • Nvidia to sell US$12bn worth of AI chips to China this year despite US controls (FT)

  • Amazon and Australian government partner up to build cloud data system to handle top secret information (Bloomberg)

  • AI frenzy expected to give 13 fold boost to Samsung second quarter profit (Reuters)

  • Francisco Partners and KKR interesting in acquiring educational software provider Infrastructure Holdings (Bloomberg)

CENTRAL BANKS

  • June's FOMC minutes note slowing economy, seeks more evidence of cooling inflation, cooling demand may lift unemployment (Bloomberg)

  • ECB policymakers view French elections as sign of a broader shift in a more populist, protectionist and turbulent direction (FT)

POLITICS

  • UK's Labour party on course for biggest majority since 1832 (FT)

  • UK PM Sunak set to stay on as leader if Tories lose the election (London Times)

  • Le Pen denounces rivals' efforts to keep far right from power (Bloomberg)

  • Macron's gamble raises stakes for Europe's future (Reuters)

  • Biden says he is not going anywhere (Axios)

  • Democratic lawmakers considering demanding Biden drop out of race (Bloomberg)

  • Latest polls show Trump pulling ahead of Biden nationally (NY Times)

ECONOMY

  • US nonfarm payrolls for June expected to show step-down in hiring alongside a moderation in wage growth (Bloomberg)

  • German factory orders much weaker than expected in May (Bloomberg)

  • Swiss inflation unexpectedly eased, supporting the SNB's rate cuts (Bloomberg)

ASX 200 DAILY CHART

XJO 2024-07-05 08-15-38
Here's an ASX 200 daily chart to compensate for the lack of tables today (Source: TradingView)

ASX TODAY

  • ASX 200 set to tick lower after a sizeable rally on Thursday, which pushed the index to within 1% of all-time highs

  • Saudi Aramco denies reports it plans to submit and offer for Santos (Reuters)

  • Seven Group completes announced compulsory acquisition of Boral (BLD)

  • Suncorp issues trading update, natural hazard experience estimated to be $1.23bn against an allowance of $1.36bn, reaffirms underlying margins between 10-12%, lifts FY25 natural hazard allowance (SUN)

 WHAT TO WATCH TODAY

  • Not a whole lot – Very few announcements and no US market lead ... expect below average trading volumes

BROKER MOVES

  • Ansell downgraded to Negative from Neutral; get remains $24.50 (E&P) 

  • Jumbo Interactive initiated with Sell and $15.50 target (Citi)

Key Events

Companies trading ex-dividend: 

  • Fri 5 July: None

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

  • Tue 9 July: None

  • Wed 10 July: None

  • Thu 11 July: None

Other ASX corporate actions today: 

  • Dividends paid: None  

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEST):

  • 7:00 pm: Eurozone Retail Sales (May)

  • 10:30 pm: Canada Unemployment Rate (Jun)

  • 10:30 pm: US Non Farm Payrolls (Jun)

  • 10:30 pm: US Unemployment Rate (Jun)

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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