Market Wraps

Morning Wrap: US stocks mixed, copper slumps to six month low, ASX 200 to fall

Fri 12 May 23, 8:20am (AEST)

ASX 200 futures are trading 8 points lower, down -0.11% as of 8:20 am AEDT.

US stocks mostly lower on Thursday, Alphabet shares surge following AI product and integration announcements, copper falls sharply to a fresh 6-month low, Disney+ loses 4 million subscribers on price hikes, the Bank of England hikes by 25 bps and China might have a deflation problem.

Let's dive in.

Overnight Summary

Fri 12 May 23, 8:20am (AEST)

Name Value Chg %
Major Indices
S&P 500 4,131 -0.17%
Dow Jones 33,310 -0.66%
NASDAQ Comp 12,329 +0.18%
Russell 2000 1,745 -0.84%
Country Indices
Canada 20,418 -0.40%
China 3,310 -0.29%
Germany 15,835 -0.39%
Hong Kong 19,744 -0.09%
India 61,905 -0.06%
Japan 29,127 +0.02%
United Kingdom 7,731 -0.14%
Name Value Chg %
Commodities (USD)
Gold 2,020.40 0.00%
Iron Ore 104.80 -
Copper 3.702 -0.22%
WTI Oil 71.45 +0.82%
AUD/USD 0.6701 -0.01%
Bitcoin (AUD) 40,297 -1.89%
Ethereum (AUD) 2,679 -2.34%
US 10 Yr T-bond 3.397 -1.22%
VIX 17 -0.06%

US Sectors

Fri 12 May 23, 8:20am (AEST)

Sector Chg %
Communication Services +1.65%
Consumer Discretionary +0.55%
Consumer Staples +0.31%
Financials -0.20%
Health Care -0.34%
Information Technology -0.45%
Industrials -0.65%
Materials -0.99%
Real Estate -1.02%
Utilities -1.14%
Energy -1.24%


S&P 500 intraday chart
S&P 500 lower but recovered from session lows (Source: TradingView)


  • S&P 500 lower, closed near session highs and off lows of -0.70%

  • US Dollar Index rallies 0.65% to a near two-week high, dragging gold lower

  • Copper slides 3.4%, breaking recent trading range to hit 6 month low

  • Growth concerns back in focus amid uptick in initial job claims, China’s increasing deflation risks and latest signs of regions bank stress 

  • Minneapolis Fed President Kashkari said inflation is coming down but has been persistent, Fed will have to keep policy tighter for an extended period of time

  • Markets remain hopeful US can avert default despite little progress (Bloomberg)


  • Disney guides wider loss for Disney+ as price hike impacted subscriptions (Bloomberg)

  • Blackstone in talks with large regional banks over lending partnerships (FT)

  • Microsoft won't raise salaries for full-time employees this year (Insider)

  • PacWest says deposits fell 9.5% in the week of 6-May (CNBC

  • Peloton slides after another product recall (Bloomberg)

  • rallied after beating earnings expectations (CNBC)     

  • Alphabet rallied after Google unveiled new software and gadgets at its developer conference (CNBC)


  • US producer prices up 0.2% month-on-month in April, softer than expected  (Reuters)

  • BoE raises rates by 25 bps and Bailey promises to ‘stay the course (Reuters)

  • China inflation continue to dissipate, adding to economic uncertainty (Bloomberg)

  • China April bank loans tumble more than expected (Reuters)

Industry ETFs

Fri 12 May 23, 8:20am (AEST)

Description Last Chg %
Lithium & Battery Tech 61.61 +0.70%
Strategic Metals 84.5 +0.12%
Gold 188.75 -0.86%
Steel 58.9 -1.83%
Aluminum 47.1049 -2.63%
Nickel 30 -2.97%
Uranium 20.97 -3.29%
Silver 23.31 -4.76%
Copper Miners 39.17 -5.49%
Aerospace & Defense 111.5 -0.33%
Global Jets 17.99 -0.61%
Biotechnology 131.03 -0.46%
Cannabis 8.78 -6.72%
Description Last Chg %
Bitcoin 16.01 -3.12%
Solar 69.89 -0.11%
CleanTech 14.31 -0.98%
Hydrogen 9.4 -1.38%
E-commerce 17.31 +1.27%
Video Games/eSports 51.815 +1.15%
Electric Vehicles 22.77 0.00%
FinTech 20.5356 -0.07%
Robotics & AI 25.57 -0.35%
Cloud Computing 16.97 -0.47%
Sports Betting/Gaming 17.2652 -0.49%
Cybersecurity 22.72 -0.57%
Semiconductor 413.73 -0.66%

Deeper Dive: Charts of the Week

This segment of the morning wrap brings you weekly technical commentary on the ASX 200 and some of the more interesting charts in the market. These are not meant as recommendations. They are for illustrative purposes only. Any discussion of past performance is for educational purposes only. Past performance is not a reliable indicator of future return. Always do your own research.

ASX 200 – Holding Pattern

image (1)
ASX 200 chart (Source: Commsec)

It has been a pretty quiet week on the ASX 200. When we caught up last week the index was trading around 7200. It now sits at 7252 but, in the scheme of things – particularly technically - nothing has changed. We need to wait until the index tests either resistance towards 7600, or support around 6885, in order to see some fireworks. Until then, we’re in a holding pattern.

Aristocrat Leisure (ALL) – Press to start feature

Aristocrat chart (Source: Commsec)

It has been a volatile ride for ALL over the past few years, with the stock impacted by the pandemic. Since plunging to a low around $30 in December last year, however, the stock has rallied strongly and is on the verge of breaking to 12-month highs above $38.50. The only caveat, volumes have dropped off a little recently so you would really want to wait to see a clear break higher to confirm the move.

Washington H Soul Pattinson (SOL) – Keeps on keeping on

image (2)
Washington H Soul Pattinson chart (Source: Commsec)

I have featured Soul Patts before but wanted to highlight it again. This is a perfect example of the trend being your friend. Many would baulk at a stock like this, saying it is ‘expensive’ but the reality is that it could get a lot more expensive. The price action has just broken higher again, through $32, and the momentum is clearly with the bulls. Average volume has been rising through the most recent part of the rally and it’s not particularly overcooked on the RSI. SOL is also historically a great dividend payer, which is something a lot of investors want in the current market environment.

Key Events

  • Trading ex-div: Janus Henderson (JHG) – $0.585, SSR Mining (SSR) – $0.078, ANZ (ANZ) – $0.81, WAM Capital (WAM) – $0.077, Macquarie Group (MQG) – $4.50 

  • Dividends paid: Waypoint REIT (WPR) – $0.041, Newmark Property REIT (NPR) – $0.02, Cosol (COS) – $0.01 Washington H Soul Pattinson (SOL) – $0.36

  • Listing: None

Economic calendar (AEST):

  • 4:00 pm: UK GDP

  • 12:00 am: US Consumer Confidence 

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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