Market Wraps

Morning Wrap: ASX to rebound; consolidation heats up in domestic cybersecurity sector

Mon 23 Dec 24, 8:31am (AEDT)

ASX 200 futures trading up 6 points, or (+0.07%), to 8,203, as of 8:30AM

The Morning Wrap will be finishing up on Tuesday 24 December 2024. It will return on Monday 6 January 2025.

The ASX is set to open higher after US markets rallied over 1%, boosted by a last-minute deal to avert a government shutdown. President Joe Biden signed a funding bill extending government operations through March 14, allocating US$100 billion for disaster relief and US$10 billion for agricultural aid, while excluding debt provisions sought by President-elect Donald Trump.

In a quiet week, vigilant investors might want to turn their attention to the domestic cybersecurity sector for potential M&A activity, as 5G Networks (ASX: 5GN) made an $18 million bid for AUCyber (ASX: CYB) late Friday. AUCyber’s board is currently reviewing the offer, which carries a modest 0.9% premium on its recent share price.

Cybersecurity remains a booming sector, with the World Economic Forum estimating global costs could hit US$10.5 trillion annually by 2025. Reflecting this demand, the Nasdaq CTA Cybersecurity Index has climbed nearly 24% this year amid the growing need to protect intellectual property and customer data.

On Tuesday, the Reserve Bank of Australia will release its meeting minutes, potentially shedding light on the timing of any interest rate cuts in 2025.

Overnight Summary

Tue 24 Dec 24, 8:23am (AEDT)

Name Value % Chg
Major Indices
S&P 500 5,974 +0.73%
Dow Jones 42,907 +0.16%
NASDAQ Comp 19,765 +0.98%
Russell 2000 2,234 -0.39%
Country Indices
Canada 24,749 +0.61%
China 3,351 -0.50%
Germany 19,849 -0.18%
Hong Kong 19,883 +0.82%
India 78,540 +0.64%
Japan 39,161 +1.19%
United Kingdom 8,103 +0.22%
Name Value % Chg
Commodities (USD)
Gold 2,625.7 -0.73%
Iron Ore 103.84 -
Copper 4.095 -0.13%
WTI Oil 69.45 -0.01%
Currency
AUD/USD 0.6251 -0.02%
Cryptocurrency
Bitcoin (USD) 93,366 -2.17%
Ethereum (AUD) 5,466 +4.03%
Miscellaneous
US 10 Yr T-bond 4.599 +1.66%
VIX 16.99 -7.45%

US Sectors

Tue 24 Dec 24, 8:32am (AEDT)

SECTOR % CHG
Communication Services +1.35%
Information Technology +1.26%
Health Care +1.04%
Energy +0.61%
Real Estate +0.50%
Consumer Discretionary +0.42%
SECTOR % CHG
Utilities +0.39%
Financials +0.29%
Industrials -0.04%
Materials -0.12%
Consumer Staples -0.57%

S&P 500 SESSION CHART

S&P 500 20 December 2024
While a positive session, the S&P 500 gave back some gains before closing 1.09% higher. (Source: TradingView)

OVERNIGHT MARKETS

  • Market saw solid rebound Friday (and shook off early risk-off posture) with oversold conditions the easiest excuse, though some choppiness tabbed to month-end and options expiration/triple-witching of US$6.5T, largest this year.

  • House Speaker Johnson said there will be no government shutdown after agreement reached on funding.

  • Solid data provided some support, including softer core inflation and declining consumer inflation expectations.

STOCKS

  • Samsung Electronics Co. and Texas Instruments Inc. to get billions of dollars of government support for new semiconductor plants in the US, cementing a major piece of the Biden administration’s Chips Act initiative (Bloomberg)

GLOBAL ECONOMY

  • Trump tariff threat may be void, as Europe increasingly dependent on US LNG -- Bloomberg, UBN, Reuters, FT

    • Europe braces for turbulence as Russia-Ukraine gas transit deal expires -- Bloomberg

    • UK government borrowing lower due to fall in debt-interest payments -- ONS, Bloomberg

    • France's Prime Minister aims to avoid government collapse with mid-February budget plan - France24

    • Italy's political stability wins over investors -- Bloomberg

Today in Review

Tue 24 Dec 24, 8:23am (AEDT)

Name Value % Chg
Major Indices
ASX 200 8,201.6 +1.67%
All Ords 8,452.7 +1.64%
Small Ords 3,087.3 +1.58%
All Tech 3,829.3 +1.67%
Emerging Companies 2,245.5 +1.13%
Currency
AUD/USD 0.6249 -0.04%
US Futures
S&P 500 6,036.5 +0.58%
Dow Jones 43,334.0 +0.04%
Nasdaq 21,741.5 +0.81%
Name Value % Chg
Sector
Financials 8,664.6 +2.38%
Consumer Discretionary 3,933.4 +2.30%
Real Estate 3,853.1 +1.95%
Utilities 9,031.1 +1.67%
Industrials 7,716.7 +1.66%
Information Technology 2,752.7 +1.46%
Energy 8,407.2 +1.38%
Communication Services 1,647.2 +1.37%
Materials 16,258.4 +0.98%
Consumer Staples 11,743.2 +0.64%
Health Care 44,621.7 +0.57%

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Key Events

Economic calendar (AEDT):

  • Tuesday: RBA December 2024 meeting minutes released at 11:30AM (Sydney time)

Dividend alerts:

  • Cromwell Property Group (CMW) declared Q2 DPS of A$0.0075 (A$0.39); record date 31-Dec, payable 14-Feb

Written By

Vishal Teckchandani

Senior Editor

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