ASX 200 futures trading up 6 points, or (+0.07%), to 8,203, as of 8:30AM
The Morning Wrap will be finishing up next Tuesday 24 December 2024. It will return on Monday 6 January 2025.
The ASX is expected to fall after a sharp drop in US markets, driven by the Federal Reserve's forward guidance following a 0.25% rate cut. The Fed now projects rate reductions of only 50 basis points in 2025, down from its earlier forecast of 1%.
Macquarie Group is reportedly exploring a $5 billion sale of its US telco, Altafiber, as larger American carriers target fiber-optic assets to expand beyond wireless services and address surging data demands.
Insignia Financial will draw attention today, with reports indicating Bain Capital may raise its bid to $4.20–$4.30 per share after its initial $4 offer was rejected. Major shareholder Tanarra Capital, holding 14%, backs Bain’s $2.7 billion proposal.
Don't forget, our Outlook Series survey closes tomorrow! By completing the survey, you'll enter the draw to win 1 of 3 tickets to Livewire Live 2025 (valued at $300 each), and get early access to 40 stock and ETF ideas.
Thu 19 Dec 24, 9:42am (AEDT)
Thu 19 Dec 24, 9:42am (AEDT)
US equities were lower in Wednesday trading as stocks ended near worst levels following the FOMC decision. S&P 500 posted worst session since early August (yen/VIX event), Nasdaq worst since early August, Russell 200 worst since Jun-22. Dow Jones posted 10th straight decline, longest since 1974.
All sectors lower, though Big tech a key drag; NVDA not as bad but TSLA today's big decliner. EVs, REITs, Regional banks, credit cards, life insurance, PE, precious metals, toys, restaurants, software, capital goods, trucking, food, pharma, biotech, E&Ps among worst performers.
Fed dials back rate cut expectations for 2025, market now pricing in two 25bp cuts (from four 25bp cuts). Chair Powell said slower pace of rate cuts reflects expectations of higher inflation, though also noted inflation story still "broadly on track." Also emphasised Fed can be more cautious in reducing rates amid economic strength.
US Treasuries under pressure with curve bear flattening; 2Y back above 4.35%, highest since late November.
US Dollar index up up 1.1% as greenback proves defensive amid market volatility.
Gold finished down 0.3%.
Bitcoin futures down 5%.
WTI crude settled up 0.1%
Honda and Nissan will reportedly begin merger talks on Monday of next week (Nikkei)
Amazon postpones return to office mandate for thousands due to lack of space (Bloomberg)
Barclays to increase annual bonuses by as much as 20% for traders and bankers (Bloomberg)
Merck purchases rights to experimental weight loss pill from Chinese drugmaker in up to $2B deal (CNBC)
AMD invests in cloud provider Vultr at a $3.5B valuation (CNBC)
Microsoft exec sees broad potential for generative AI, though says core pieces missing in the tech (FT)
Apple halts work on a project to build an iPhone hardware subscription service (Bloomberg)
Thu 19 Dec 24, 9:44am (AEDT)
Morgans upgrades Sigma Healthcare (ASX: SIG) to ADD with $2.98 price target (from $2.21)
Morgans downgrades Percheron Therapeutics to REDUCE with $0.01 price target (from $0.24)
Canaccord Genuity initiates Clarity Pharmaceuticals (ASX: CU6) at BUY with $8.06 price target (50% upside)
Ord Minnett downgrades SRG Global (ASX: SRG) to ACCUMULATE with $1.32 price target (increased from $1.13)
Jeffries downgrades Peter Warren Automotive Holdings (ASX: PWR) to HOLD with $1.45 price target (from $1.95)
Stocks trading ex-dividend:
Mon 30 Dec: Rural Funds Group (ASX: RFF) (1.7%), Charter Hall Group (ASX: CHC) (1.61%), APA Group (ASX: APA) (3.7%), Transurban (ASX: TCL) (2.48%), Goodman Group (ASX: GMG) (0.42%)
Economic calendar (AEDT):
Today: Australian private sector credit
Tonight: Bank of England interest rate decision
Overnight: US GDP and unemployment claims
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