ASX Futures (SPI 200) imply the ASX 200 will open 47 points higher, up 0.74%.
US markets were closed on Monday, major European indices bounced overnight, wholesale prices in Germany are surging and China kept its interest rates unchanged.
Let’s dive in.
Tue 21 Jun 22, 8:22am (AEST)
|US 10 Yr T-bond||3.239||-2.06%|
US markets were closed in observance of the Juneteenth National Independence Day holiday. We now turn to the next best alternative: European markets.
European benchmarks including the pan-European STOXX 600, FTSE 100 and German DAX all rose at least 0.97% after a brutal selloff last week on recession worries
Looking at UK markets:
Energy, discretionary and bank sectors outperformed
Industrials, materials and utilities underperformed
Renault (+9.7%) after Jefferies upgraded the French carmaker to a “Buy”
International Consolidated Airlines Group (+7.3%) saw the largest increase among FTSE 100 constituents. This is in-line with the bounce for local travel stocks on Monday
HSBC (+5.7%) amid a broad-based rebound in battered bank stocks
Kingspan (-11.4%) shares plunged after the building insulation specialist said that market sentiment was deteriorating and order intake volumes were down significantly in May and June
Chinese banks kept lending rates unchanged, in-line with forecasts
The 1-year loan prime rate was left at 3.7%
The 5-year loan prime rate was maintained at 4.45%
China is in wait-and-see mode as it gauges the economic rebound from covid lockdowns
Bloomberg economists said that China is still in an easing cycle and expect it to lower rates by another 20 bps by year-end
Germany’s producer price index surged 33.6% year-on-year in May
This is the 6th consecutive month of record highs and slightly ahead of the 33.5% reading in April
Energy was the biggest contributor, notably prices for the distribution of natural gas, electricity and mineral oil products
Excluding energy, producer prices rose 16.5% compared to last year
Iron ore prices plunged on Monday amid concerns about weak Chinese demand and its troubling property market
Oil prices are steady around US$110 as investors weigh recession fears against extremely tight supply
Gold is still trying to price-in more hawkish-than-expected central banks
The S&P/ASX 200 is hoping to snap a 7-day losing streak on Tuesday. SPI futures are currently pointing towards a 0.74% rise at open and overnight markets were also positive.
Sectors to look for signs of strength:
Energy: Can oil stocks rebound from the sharp selloff on Monday?
Uranium: Several Toronto-listed uranium miners bounced overnight, including Cameco (+2.6%)
Coal: Another sector that was sold off heavily on Monday. Worth noting that Newcastle coal futures rose 6.6% overnight
Travel: Can local travel names extend gains to a 2-day winning streak?
Tech: ASX 200 tech index rose 1.2% on Monday, another sector looking to extend gains from no-man's land
ASX corporate actions occurring today:
Ex-dividend: KPG, PMV
Dividends paid: CRN, FPC, OCA, VUK
Issued shares: 1ST, AFP, AKN, AM7, AVR, BSA, CLG, CXM, DTR, DVP, EEG, FHE, GCX, IHL, KAU, KKO, KMT, KZA, LRS, MFG, MGU, MRI, NAB, NBI, OAU, PCK, PDI, PPC, RHY
Other things of interest (AEST):
RBA Gov Low Speech at 10:00 am
RBA Meeting Minutes at 11:30 am
Finance Writer & Social Media
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