Market Updates

Wall Street closed mixed following PCE results. The Dow Jones jumped 575 points (+1.51%), registering its biggest daily percentage gain since Nov-23. S&P 500 broke 5,200 before rallying above that level as every sector rallied, gaining 0.80%, and the NASDAQ slipped 0.01%. For the week, Dow fell 384 points (-0.98%), S&P 500 -0.51%, and NASDAQ -1.10% breaking five straight weeks of gains. For May, indices rose rebounding after a weak April Dow +2.3%, S&P 500 +4.8% and NASDAQ +6.88%. PCE price index rose 0.3% MonM in April, matching forecasts and core PCE rose 0.2%, the slowest rate in four months, below expectations. While both annual headline and core PCE inflation remained steady at 2.7% and 2.8% respectively. Treasury yields fell after data showed US inflation stabilised, 10Y yield slid 4.3bps. On the month the 10Y yield has fallen 17.6bps.

ASX SPI up 34 points.

COMMODITIES

• Codelco and SQM ink pact set to reshape Chile's lithium sector.
• Saudi Arabia sets new test for international interest with $13.1bn Aramco sale.
• Hess shareholder vote on Chevron deal easily met majority required -filing.
• Saudi Arabia invites OPEC+ ministers to Riyadh for June 2 meeting, sources say.
• Oil settles down ahead of OPEC+ meeting, posts weekly loss.
• US oil producers maintain modest growth as OPEC+ eyes extended cuts.
• Gold posts fourth monthly rise on Fed rate cut hopes.
• Copper rebounds after US inflation data pushes dollar down.
• Iron ore posts weekly decline on softening near-term China demand.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

The Dow Jones Industrial Average slid 330.06 points, or 0.86%, to 38,111.48. The S&P 500 lost 0.6% to close at 5,235.48. The Nasdaq Composite dipped 1.08% to 16,737.08, underscoring the weakness in technology names.

 The Nasdaq Composite and S&P 500 have jumped nearly 7% and 4%, respectively, in May. The Dow has risen 0.8% in the month. All three indexes hit record highs in May.

ASX to rise. SPI Futures up 50 points (+0.65%).

• Base metals lower across the board. Nickel -1.98%, Aluminium -2.86%, Zinc -0.93%, Lead -1.68% and Tin -2.33%.
• Copper fell 2.78% as funds sold off bullish positions.   
• Oil prices are down for a second consecutive session on a surprise jump in stockpiles and the reports of weak demand in the US.  WTI % and Brent Crude %.
• 10Y Bond Yields – US 4.550%, Australia 4.423%, and Germany 2.658%.
• Currencies – AUD +0.02%, USD Index -0.33%, Euro +0.01%, and Bitcoin +1.33%.
• Gold bounced back, up 0.18%, as the dollar and treasury yields slipped.  

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

ASX 200 drops another 37 points to 7629 (-0.5%) after a bounce off the 7600 support level. Bank held firm with small losses in CBA and NAB. The Big Bank Basket down to $205.46 (-0.1%). MQG fell 0.6% with insurers mixed, QBE up 0.1% as bond yields rose. SUN off 0.8%, with REITs down, SGP off 0.9% and GMG up slightly. Industrials saw buyers in defensives, WES up 0.8% and ALL up 0.9%, with BXB doing ok, up 0.6%. Tech mixed despite Nasdaq futures showing early losses. The All-Tech Index up 0.4%. REA, CAR and SEK all better. In the miners, BHP sank 1.7% after the bid was rejected again, RIO was down 1.5%, and FMG fell hard again off 3.1%. Gold miners dropped as bullion fell on a stronger USD, NST down 2.8% and EVN off 2.8%. Lithium and copper stocks also falling, PLS down 2.1%, and IGO dropping 4.4%. LTR pulled back 5.5%, with oil and gas stocks slipping. WDS down 1.2%, and STO off 1.8%. Uranium stocks eased back. In corporate news, quite apart from BHP news. AAC and ELD mixed on the rollback of Chinese beef tariffs. CAT lived up to its name with a 9.7% gain on a business update. On the economic front, we had building approvals. Not shooting any lights out to relieve pressure on housing. In Asian markets, a sell-off following US markets, Japan down 0.6%, HK down 1.5% and China off 0.5%. 10Y yields 4.44%.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

The Dow Jones Industrial Average fell 411.32 points, or 1.06%, to 38,441.54. The S&P 500 dipped 0.74% to 5,266.95, marking its first negative session of the last three. The Nasdaq Composite slipped 0.58% to 16,920.58, as Nvidia’s advance somewhat mitigated losses for the technology-heavy index.

All 11 sectors that comprise the broad S&P 500 retreated, underscoring the breadth of market weakness. More than 440 stocks in the index were lower on the day.  10 year Treasury yields  jumped after another tepid Treasury bond auction.

ASX to fall. SPI Futures down 52 points (-0.68%).

• Base metals mixed. Copper -0.69%, Nickel -0.27%, Zinc -0.29%, Lead -1.08% and Tin +0.50%.
• Aluminium rose 1.68%, hitting its highest level in nearly two years on supply tightness and buying interest from funds switching from copper.
• Gold down 0.94% on a stronger dollar, higher bond yields and hawkish comments from Fed officials.
• Oil prices ease on demand concerns. WTI -0.82% and Brent Crude -1.29%.
• Currencies – AUD +0.02%, USD Index 0.47%, Euro +0.01%, and Bitcoin -1.36%.
• 10Y Bond Yields – US 4.616%, Australia 4.451%, and Germany 2.689%.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

ASX 200 fell another 101 points to 7666 (-1.3%) in lacklustre trade compounded by nasty CPI number that put rate rises back on the cards. Banks were smacked down, with ANZ down 2.5% and the Big Bank Basket down to $20587 (-1.9%). MQG smashed 1.3% and insurers off with IAG in a class action down 3.1%. ASX fell 1.5%, with fund managers under pressure. REITs also feeling the pain, SGP off 1.5% and SCG down 2.5%. Industrials too under pressure, WES continuing to slide down another 1.1% with WOW and COL falling between 1.3-2%. Tech slipped, and retail down again. JBH off 1.5%, and ALL falling 3.0% despite a bullish report from Macquarie. In resources, crunch day for BHP with its Anglo bid in the UK. The stock held firm. FMG down 3.6%, and RIO sold down 1.5% as iron ore fell for the third day in Asia. Base metals mixed, lithium escaping the wrath and gold miners continued to buck the negativity. Oil and gas stocks down with uranium mixed. In corporate news, IAG facing a class action over pricing for loyal customers, NWS unveiled significant changes falling 0.3%, LLC sold a US business to kick off its restructure, down 2.4%. In economic news, CPI came in hotter than expected and shelved any hopes for a quick rate cut. Asian markets lower, Japan down 1.0%, China up 0.1% and HK down 1.9%. 10Y yields spiked to 4.40% on the CPI news. AUD steady. BHP asks for more time. Again.

Dow Futures down 174 points. NASDAQ Futures down 81 points.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

Wall Street ended mixed overnight in an uneventful day of trading. The NASDAQ closed above 17,000 for the first time ever, up 0.59% supported by gains in Nvidia +7.0%, reaching a $2.8 trillion market cap boosting other chip stocks and the PHLX Semiconductor Sector index 1.86%. The Dow slipped 217 points (-0.55%), and the S&P 500 ended flat +0.02% following a sharp rise in treasury yields, with the 10Y treasury note advancing 8.1bps to 4.54% after an auction of 5Y and 2Y notes triggered a selloff. In economics, US consumer confidence improved unexpectedly, with the consumer confidence index rising to 102 in May from an upwardly revised 97.5 in April, remaining within a relatively tight range for more than two years. Nothing new on the narrative front from the Fed, Kashkari said he would need to see “many more months of positive inflation data” before contemplating rate cuts and stated the Fed should not rule anything out when asked about potential rate hikes.

ASX to fall. SPI Futures down 46 points (-0.59%).

• Base metals higher on prospects of rate cuts, a weaker dollar, and strong data from China. Copper +1.79%, Nickel +1.36%, Aluminium +2.86%, Zinc +1.68%, Lead +1.96%, and Tin +2.61%.
• Gold advanced 0.44%, helped higher by a weaker dollar as the market awaits inflation data later this week.
• Currencies – AUD -0.05%, USD Index +0.01%, Euro -0.01%, and Bitcoin -1.80%.
• 10Y Bond Yields – US 4.548%, Australia 4.348%, and Germany 2.601%.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

ASX 200 drifts 22 points lower to 7767 (-0.3%). A quiet session with some of Monday's exuberance fading. Banks were steady, with the Big Bank Basket at $209.80 (+0.1%). ANZ the best of the bunch. Insurers slightly firmer, SUN up 0.1% and NHF up 0.4%. REITs were pretty steady SGP up 1.8% and GMG down 0.6%. Industrials eased, TLS down 0.6%, WES down again off 0.4%, with TCL falling 1.6%. Tech eased back, with the All-Tech Index down 0.6%. WTC off 0.6%. In resources, BHP continues to hold steady ahead of the 'put up or shut up' deadline on the Anglo bid. Gold miners better, NEM up 0.3% and EVN up 0.5% on bullion rises. Oil and gas mixed, WDS down 0.3% and STO up 0.5%. Uranium stocks fell as the spot price eased back to $90. In corporate news, BOE sank 10.9% on news of three directors selling down considerably. WBC’s RAMS is being investigated over home loans. PWR dropped 12.6% on an earnings downgrade, and PME won another contract worth a minimum of $45m. PLY lifted its guidance too, and the stock jumped 6.1% in response. On the economic front, retail sales came in below forecasts at a weak 0.1% MonM rise. Asian trade mixed, Japan up 0.1%, China down 0.3% and HK off 0.1%. 10Y yields steady at 4.26%. Dow Futures up 18 points. NASDAQ Futures up 38 points.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

US and UK markets closed for holidays.

ASX to edger higher. SPI Futures up 6 points (+0.08%).

• Currencies – AUD +0.03%, USD Index -0.12%, Euro +0.01%, and Bitcoin +1.62%.
• Gold up 0.73%, bouncing from a two-week low as markets assess diminishing bets of rate cuts ahead of CPI data this week.
• Brent Crude rose 1.03% in muted trade due to public holidays in Britain and the US.
• 10Y Bond Yields – Australia 4.278%, UK 4.257 and Germany 2.554%.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.

 ASX 200 rose 61 points to 7788 (0.8%). Solid bounce off 7700 support on low volume and volatility. Banks led the market rally, the Big Bank Basket up to $209.51 (+1%) with ANZ the winner up 1.1%. MQG rose 0.7% with ASX up 1.7%. Insurers lightly better, SUN up 0.6%. REITs did better as GMG rallied 2.3% with SCG up 1.3%. Industrials were too back in demand, TLS up 2.3% as defensives were bid up, WOW up 1.2%, and WES rebounding 1.2%. Consumer stocks better, WEB up 1.3% with JBH better by 1,3% and BAP doing well up 3.6%. Resources a little mixed, lithium slightly depressed, PLS down 1.0% and MIN off 0.3% with BHP up another 1.1% going against the trend in RIO and FMG. Gold miners recovered from a sell off, NST up 1.8% and EVN up 2.6%. Oil and gas stocks flat. In corporate news, LLC rose 8.0% after announcing a serious strategic review and internation projects on hold. CTT rallied 10.1% after denying any truth in media reports, NEU rallied hard on Phase II test results. Up 15.5%. Nothing on the economic front, Asian markets better with Japan up 0.4%, China up 0.5% and HK up 0.8%. 10-year yields steady at 4.27%.

Why not sign up for a free trial? Get access to expert market insights and manage your investments with confidence.

Ready to invest in yourself? Join the Marcus Today community.