ASX Futures (SPI 200) imply the ASX will open 38 points higher, up 0.5%.
Major US indices pushed higher, Ukraine President Zelensky is willing to discuss neutrality in peace talks, China locked down its financial capital Shanghai in response to rising covid cases and the yield curve continues to flatten - a potential sign of an economic downturn.
Oh and Will Smith slapped Chris Rock during the Oscars last night - it doesn’t seem scripted.
Let’s dive in.
Tue 29 Mar 22, 8:33am (AEDT)
Name | Value | Chg % | |
---|---|---|---|
US Indices | |||
S&P 500 | 4575.52 | +0.71% | |
Dow Jones | 34,956 | +0.27% | |
NASDAQ Comp | 14,355 | +1.31% | |
Russell 2000 | 2,078 | +0.00% | |
Country Indices | |||
Canada | 21,978 | -0.13% | |
China | 3,215 | +0.07% | |
Germany | 14,417 | +0.78% | |
Hong Kong | 21,685 | +1.31% | |
India | 57,593 | +0.40% | |
Japan | 27,944 | -0.73% | |
United Kingdom | 7,473 | -0.14% |
Name | Value | Chg % | |
---|---|---|---|
Commodities (USD) | |||
Gold | 1,922.10 | -1.64% | |
Iron Ore | 149.87 | - | |
Copper | 4.723 | +0.52% | |
WTI Oil | 103.49 | -9.14% | |
Currency | |||
AUD/USD | 0.7489 | +0.02% | |
Cryptocurrency | |||
Bitcoin (AUD) | 64,064 | +3.62% | |
Ethereum (AUD) | 4,560 | +5.00% | |
Miscellaneous | |||
U.S. 10 Year Treasury | 2.477 | -0.60% | |
VIX | 20 | -5.67% |
Stocks
All three major US indices closed at intraday highs as Ukraine-Russia peace talks began making progress
Ukraine’s president said his government is prepared to discuss adopting a neutral status as part of a peace deal with Russia
Neutrality means a country does not apply itself militarily with others
Consumer discretionary, real estate and tech stocks outperformed
Financials, materials and energy sectors closed in negative territory
Only 45% of US stocks advanced, indicating large cap stocks did the heavy lifting
59% of US stocks trade below their 200-day moving average (58% yesterday, 60% a week ago)
Tesla jumped 8% after the company disclosed plans for a stock split. This would mark the second split in two years
Netflix shares +1.25% even after executives flagged that growth would slow much more than expected in 2022
Economy
This week is stacked for economic data. Most employment, inflation, manufacturing and services data from the US, Europe and China will begin to flow from Wednesday onwards
Commodities
Most commodities fell sharply after China’s financial hub of Shanghai launched a lockdown to curb the nation’s highest surge in covid cases since March 2020. Confirmed talks between Ukraine and Russia also relieved commodity prices.
Iron ore prices were mostly unchanged, market participants remain pessimistic about iron ore demand in China over the coming weeks, according to Fastmarkets
Oil prices fell sharply as ceasefire talks and Chinese lockdowns take some heat out of the market
Gold is down almost -2% as investors continue to return to risk-assets
Tue 29 Mar 22, 8:33am (AEDT)
Sector | Chg % |
---|---|
Consumer Discretionary | +2.67% |
Real Estate | +1.28% |
Information Technology | +1.23% |
Health Care | +0.74% |
Utilities | +0.62% |
Consumer Staples | +0.41% |
Sector | Chg % |
---|---|
Communication Services | +0.27% |
Industrials | +0.03% |
Financials | -0.30% |
Materials | -0.46% |
Energy | -2.56% |
Tue 29 Mar 22, 8:33am (AEDT)
Description | Last | Chg % |
---|---|---|
Commodities | ||
Aluminum | 76.0107 | -0.65% |
Copper Miners | 46.47 | -0.97% |
Lithium & Battery Tech | 75.5 | -1.09% |
Steel | 69.79 | -1.43% |
Strategic Metals | 116.8 | -1.70% |
Gold | 182.38 | -1.82% |
Silver | 23.48 | -2.34% |
Uranium | 26.25 | -2.78% |
Nickel | 47.2971 | -9.44% |
Industrials | ||
Global Jets | 20.84 | +0.86% |
Aerospace & Defense | 112.95 | -1.35% |
Healthcare | ||
Biotechnology | 128.16 | +0.71% |
Cannabis | 5.95 | -6.05% |
Description | Last | Chg % |
---|---|---|
Cryptocurrency | ||
Bitcoin | 27.94 | +7.84% |
Renewables | ||
Solar | 75.36 | +0.81% |
CleanTech | 16.29 | +0.43% |
Hydrogen | 18.92 | -0.63% |
Technology | ||
Cloud Computing | 21.62 | +1.71% |
FinTech | 31.71 | +1.61% |
E-commerce | 22.31 | +1.39% |
Video Games/eSports | 58.68 | +1.11% |
Semiconductor | 485.32 | +0.78% |
Robotics & AI | 29 | +0.28% |
Electric Vehicles | 27.36 | +0.22% |
Cybersecurity | 31.37 | +0.16% |
Sports Betting/Gaming | 19.98 | -0.80% |
The 8% Tesla rally gave the biggest boost to the S&P 500 and Nasdaq. Other notable tech gainers include:
Block +6%
Etsy +4.7%
Zoom +3.1%
Affirm +2.6%
Amazon +2.6%
The overnight tech-led rally as well as positive SPI futures could see some positive flows for ASX tech stocks. Local Block (ASX: SQ2) shares will have a positive open thanks to the 6% gain from its US-counterpart.
It was unusual to see all three major US indices close higher but most major US banks down between -0.4% and -1.5%.
Morgan Stanley downgraded US banks, flagging escalating risks and the likelihood that the market has already priced in the tailwinds from higher interest rates.
Investors should observe if the overnight underperformance impacts how local banks trade on Tuesday.
Bitcoin is now breakeven for the year after falling as much as -26%.
"Buoyed by improved sentiment, the cryptocurrency managed to break a level that has proven a key rotation point since the start of the year," said Oanda senior market analyst, Craig Erlam.
"The ascending triangle it traded in following that was technically bullish and the breakout confirms that."
Local stocks with exposure to cryptocurrencies include the Betashares Crypto Innovators ETF (ASX: CRYP) and DigitalX (ASX: DCC).
Several uranium and lithium stocks have posted strong gains in the past few weeks.
Local uranium stocks reversed sharply on Monday, with big names like Paladin Energy (ASX: PDN) down -6%.
Overnight, the Global X Uranium ETF fell -2.8%, reflecting further weakness from international uranium stocks. The fall doesn't appear too alarming as no key moving averages were breached.
Uranium spot prices remained relatively stable, around US$58/lb.
In addition, several local lithium stocks faded into close on Monday. One of the most popular emerging producers, Lake Resources (ASX: LKE), was up 2% in early trade, before closing -5.4% lower.
The morning rally into a weak close was a consistent narrative across most lithium names.
The VanEck Rare Earth/Strategic Metals ETF fell -1.7% overnight, but well-above session lows of -3.1%.
Lithium stocks appear to be taking a breather after the massive recent run up.
Energy was the worst performing US sector, down -2.56%.
Oil prices buckled -8% overnight as Chinese lockdowns are driving fears of 'demand destruction'.
The Shanghai two-stage lockdown will put 26m people into lockdown, also closing bridges, tunnels and restricting highway traffic.
OPEC+ is due to meet on Thursday and its widely believed that the petroleum organisation will stick to its original output increase plan of 400,000 barrels per day. Any deviation or new updates could spark more volatility in oil prices.
The sharp overnight fall in oil prices and selloff for US energy stocks could spark negative flows for local names on Tuesday.
ASX corporate actions occurring today:
Ex-dividend: SXE
Dividends paid: API, BSL, EQT, GRR, NST, PPE
Listing: None today
Other things of interest (AEDT):
Australia Retail Trade (Feb) at 11:30 am
US Job Openings (Feb) at 1:00 am (Wednesday)
Get the latest news and insights direct to your inbox