Morning Wrap: ASX to rebound; consolidation heats up in domestic cybersecurity sector
ASX 200 futures are trading 14 points higher, or +0.17%, to 8,079 as of 8:25AM
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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
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 | 0.00% |
 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
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
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
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% |
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
