Market Updates

US stocks fell on Wednesday as traders digest the latest FOMC monetary policy decision and comments from Chair Powell. The Fed kept interest rates steady as expected and Chair Powell said it will be appropriate to start cutting rates at some point this year although he doesn't think a March cut is likely. Traders pared bets for a rate cut in March after such comments. The S&P 500 fell 1.61%, the Nasdaq 100 declined 2.23% and the Dow Jones lost 317 points. 

ASX 200 SPI Futures down 84 points

• Base metals mixed as China’s manufacturing activity contracted for a fourth straight month in January, Nickel -1.76%, Aluminium +0.20%, Zinc -1.69%, Lead -0.94%, and Tin +0.27%.
• Copper up 0.83%, hitting a one-month high as the USD retreated.
• Gold flat.
• Oil prices settled lower, pressured by a surprise build in US crude inventories, WTI down 2.58% and Brent Crude off 1.44%.
• Iron ore futures hit a more than one-week low, down 0.35%, with China’s weak factory data hitting market sentiment amid renewed worries over the country’s property sector.
• 10Y Bond Yields – US 3.929%, Australia 4.006%, and Germany 2.168%.
• Aussie dollar down 0.56% to 65.64US cents. USD Index +0.18% at 103.59. Japanese Yen -0.44%.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

ASX regrouped after an early swoon jumping 81 points to 7681 (+1.1%). The CPI number turned things around coming in below forecast and pointing to zero chance now of a rate rise. Rate cuts could be sooner rather than later. Looked like some month end window dressing helping things along too. Banks continue to lead the market ever higher, CBA up to another record up 1.3%, WBC up 1.5%, and ANZ up 1.5%. MQG rose 1.3%, with financials and REITs kicking higher. Insurers doing exceptionally well, QBE up 2.7% and SUN up 1.9% as CPI showed strong insurance growth. Industrials were solid, TLS up 0.5%, with supermarkets finding friends COL up 1.3% and EDV up 1.6%. Utilities doing well, ORG numbers helped this morning, APA up 1.6%, and TCL managing a 1.1% gain. Tech slightly higher despite US slipping slightly. Resources were once again a mixed bag; Oil and gas were better as crude prices rose, WDS was up 1.7%, and coal was better. Iron ore stocks heading sideways, lithium remains an outpost of negativity, PLS down 1.4% and MIN slipping back 1.5%. Gold miners fell, NST down 1.4%. In corporate news, plenty of quarterlies dropping. WBT fell 9.8% on royalty timing concerns, IGO down 2.2% after placing Cosmos on care and maintenance, CCP dropped 2.6% and posted a net loss. On the economic front, Chinese factory activity shrank again, local inflation slowed to 0.6% in Q4. Over the last 12 months, CPI fell back to 4.1% from 5.4%. Asian markets slipped again, with Japan down 0.3% HK off 1% with China off 0.2%. 10Y yields dropping to 4.05%. Dow Futures up 22 points. NASDAQ Futures down 140 points. 

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

US equities finished mixed overnight. The NASDAQ fell 0.76% ahead of Microsoft and Google's quarterly results after the closing bell. The S&P 500 closed nearly unchanged, down 0.06%, near the previous day's all-time closing high, while the Dow finished near session highs, up 134 points (+0.35%). US 10Y Treasury yields remained near two-week lows as the market considered unexpected job market strength. The USD Index fell 0.19% to 103.42, consolidating ahead of the Fed decision and the key US jobs data for January. Among stocks, UPS fell 8.2% following a disappointing annual revenue forecast. Conversely, GM rose 7.8% on a positive 2024 earnings outlook and increased capital return commitments to shareholders. Citigroup 5.5% and BofA +3.5% saw gains after receiving rating upgrades from Morgan Stanley, lifting the S&P 500 banks index.

ASX flat. SPI Futures up 1 point (+0.01%).

Tech stocks eased on results. Alphabet down 4% Microsoft down 1.3% and AMD off 3%

• WTI and Brent Crude advanced 1.36% and 0.40% despite concerns around China demand, buoyed by positive global growth forecasts and rising tensions in the Middle East.
• Gold climbed to a two-week high, supported by a softer dollar, up 0.22%.
• 10Y Bond Yield – US 4.041%, Australia 4.153%, and Germany 2.266%.
• China’s Dalian Iron Ore fell 0.56% as sentiment took a hit over China’s struggling property market.
• Base metals higher. Copper +0.75%, Nickel +0.06%, Aluminium +0.53%, Zinc +0.29%, Lead +0.25% and Tin the only laggard off 1.17%.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

ASX closed up 22 points to 7600 (0.3%) after shooting higher in morning trade. It hit near record highs before a sell-off. Banks eased back very slightly with WBC down 0.5% and Big Bank Basket down to $ (%). Insurers eased back with QBE down 2.2% and SUN off 2.0%. Other financials eased back too, MQG the exception up 0.2%.  REITs better led by GMG up 1.0% and SCG up 2.1%. Tech better WTC up 1.3% and the All-Tech Index up 1.1%. Telcos slightly better, TLS up 0.5%. Industrials mixed, REA better by 1.5% and WOW down 0.8% on broker calls, CPU down 1.6% and BXB off 1.7%. In resources, iron ore stocks firmed on stimulus hopes, Gold miners better as GOR bounced 10.0% on broker commentary. Lithium stocks showing some early signs and uranium stocks finding their feet with oil and gas falling slightly as crude slipped. In corporate news, plenty of quarterlies and earnings updates, MP1 lived up to its name with a gush higher on better than expected numbers and commentary, up 27.6%, 29M fell 16.8% on quarterly numbers missing, MAD dropped 5.3% surprising consider it looked ok, DJW ex div and NIC up 20.8% on a div increase and buyback. In economic news, retail sales came in below forecast, down 2.7%, Godfreys went into administration. In Asian markets, China slipped lower as stimulus hopes fade. China down 0.8% and Japan up 0.3%. Bond yields fell back to 4.14%.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

The Dow Jones Industrial Average added 224.02 points, or 0.59% to close at 38,333.45, while the Nasdaq Composite gained 1.12% and settled at 15,628.04.
ASX SPI Futures up 38 points. It was the sixth record close for the S&P 500 and the Dow. 

• Base metal broadly lower as the USD firmed. Nickel -1.02%, Aluminium -0.48%, Zinc -0.54%, Lead +0.58% and Tin -0.86%.
• Gold firmed 0.64% as rising tensions in the Middle East lifted demand for the safe-haven asset.
• Oil prices fall as China’s ailing property sector sparked demand worries. WTI down 1.53%, and Brent Crude off 1.44%.
• Copper gained 0.30%, although it came under pressure on demand concerns in China following news from the country's property sector.
• 10Y Bond Yields – US 4.082%, Australia 4.152%, and Germany 2.230%.
• Aussie dollar up 0.50% to 66.08US cents, and the USD Index edged higher to 103.51

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

ASX 200 finished up 23 points to 7578 (0.3%). A positive start to the week with some big events to come. Once again, we saw a divergence in the markets with financials continuing to defy analysts and power up, The Big Bank Basket up to $198.84 (0.9%). MQG rose 0.6% with insurers under a little pressure today. REITS back in demand despite no real change in bond yields, Industrials relatively firm, COL up 0.6% and WOW unchanged despite some Kiwi woes. Gaming stocks did well, TLC up 1.4% and ALL up 0.6% with healthcare mildly positive, CSL up 0.1% and RMD unchanged. Tech stocks sagged a little on Nasdaq softness, WTC down 2.5% and XRO off 3.0%, with the All-Tech Index falling 0.3%. In the resource space, BHP slumped 1.4% on Samarco news over the weekend. FMG powered another 1.0% higher on broker upgrades, gold miners were mixed, NST was up 0.4%, but GOR crashed 18.4% on a quarterly report. Lithium stocks pushed a little higher as PLS rose 2.0% and IGO with plans to cut back on production rose 1.7%. Oil and gas stocks were in demand as oil rose on further tensions after US casualties in the Middle East. In corporate news, BAP saw a winning streak on M&A suggestions after an earnings downgrade up 5.9%, PPT announced FUM dropped $4.3bn, KAR boosted sales in last quarter, WOW announced a write down in NZ and with its EDV holding, SUN saw $568m in claims from recent wild weather. Nothing on the economic front, in China, Evergrande went into liquidation, little effect so far. Asian markets saw gains, Japan up 1%, China up 0.1% and HK bouncing back 0.9%. 10-year yields steady around 4.22%

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

Stocks in the US closed mixed on Friday, as investors weighed the latest corporate results and economic data. The S&P 500 edged lower, snapping 6-day winning streak and the Nasdaq 100 lost 0.5%, while Dow Jones finished higher by 60 points.

ASX 200 SPI Futures up 14

• Copper slips on doubts over China's stimulus measures.
• Iron ore posts best week since November on China optimism.
• Gold holds steady with spotlight on Fed verdict.
• Oil edges higher, on track for weekly gain on strong economic growth.
• OPEC+ unlikely to decide oil policy on Feb 1, will wait several weeks.
• Chinese copper smelters propose output cuts on concentrate tightness.
• BHP Group to review court decision on $31.53bn Fundao dam claim.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

ASX 200 closes up 36 points in another strong day at 7556 (+0.5%) on Chinese stimulus hopes. The index is up 2.8% since last Friday. Resources were passed the baton today, with quarterlies dominating too, FMG leading the iron ore stocks higher up 2.0%, production numbers beating expectation, Iron ore picking back up in Asia, helping BHP up 1.5% and RIO up 2.8%. MIN powered ahead on its quarterly on some short covering and bargain hunting up 7.1%. PLS kicked a little on broker comments up 2.0%. Gold stocks were mainly firmer, with NST up 0.7% and EVN gaining 1.6%. Oil and gas stocks slightly higher, with both WDS and STO up around 0.7%. Coal stocks better too, WHC up 1.2%. Banks pushed ahead slightly, the Big Bank Basket shrugging off cooling broker talks with a push to $197.02 (+0.2%). MQG eased 0.2%, Insurers doing well, with QBE up 1.4%. Industrials were mixed, healthcare punched higher on RMD results up 6.4%, COH also better, REITs eased, and tech fell slightly on Tesla results. The All-Tech Index down 0.2%. In corporate news, Is Don, is bad apparently as DMP were stuffed crust on lower Asian sales, falling 31.0%, NAN rallied 4.5% after a day to forget yesterday, SYA dropped 9.1% on a strategic review, IPL added 4.7% on plans to return $500m to shareholders. In AAC, its biggest shareholder pleaded guilty to insider trading, the stock rose 1.7%. On the economic front, all eyes on Chinese stimulus and US results. ECB tonight. Tesla falls after hours. In Asian markets, China stimulus hopes. Japan +0.2%, China up 2.1%, HK up +1.3%. Dow Futures up 70 points. NASDAQ Futures down 11 points. 

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

Wall Street finished mixed overnight. The S&P 500 marked its fourth consecutive record-high close, driven by strong quarterly results from Netflix +10.7% and positive reports from chipmaker ASML +8.85%. NASDAQ Composite rose 0.36%, now ~4% below its 2021 all-time high, while the NASDAQ 100 advanced 0.3%, hitting record highs. The Dow Jones fell 99 points (-0.26%). Up 159 points at best. Down 110 points at worst. Treasury yields rebounded following strong US business activity data and ahead of a Federal Reserve meeting. Among stocks, Microsoft +0.9% reached a record high, surpassing a $3 trillion market value for the first time. Netflix gained 10.7%, reaching a two-year high, as robust subscriber growth boosted confidence.

Tesla down 2.84% in after-hours trade, following a decline in Q4 gross margin to 17.6%, down from 23.8% a year earlier, attributing it to price cuts and incentives aimed at boosting electric vehicle demand. Tesla recorded record deliveries in the quarter, achieving its 2023 deliveries target of 1.8m cars, but lost its top EV maker spot to China's BYD in Q4. Q4 revenue rose 3% to $25.17bn, marking the slowest pace of growth in over three years.

ASX poised to rise. SPI Futures up 18 points (+0.24%).

• Base metals broadly higher gaining as the USD dropped. Nickel +1.69%, Zinc +2.5%, Lead -0.16%, and Tin +1.36%.
• Copper rose to a three-week high, up 1.95%, on hopes of more stimulus measures from China.
• Aluminium edges 0.09% higher as markets gauge risks of potential EU import sanctions on major producer Russia.
• Gold down 0.81% after data showed US business activity.
• Dalian Iron ore extended gains for a second consecutive session, up 1.76% as markets eagerly await details of stimulus measures from China.
• WTI was up 1.02%, and Brent Crude advanced 0.85% to a four-week high on a bigger-than-expected US crude storage withdrawal, a drop in US crude output and a weaker US dollar.
• 10Y Bond yields – US 4.180%, Australia 4.279%, and Germany 2.349%.
• Aussie Dollar edges lower 0.05% to 65.75US cents, and the USD dropped after rising in eight of the last 10 sessions.  

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.

 The ASX 200 has finished near flat, remaining close to unchanged since midday. Individual stocks had a different story with plenty of volatility around during confessions and results season. NAN was the worst performer in the All Ords, falling 33.4% as revenue dropped and costs rose. KGN was one of the standout performers, rising 14.9% on a profit upgrade thanks to improved margins and selling inventory. Lithium saw some buyers thanks to PLS reporting well and news of a bullish outlook from the AFIC fund manager. PLS rose 6%, LTR gained 3.3% and SYA up 12.5%. Rare earth miners also saw strong buying along with Aluminium on commodity price rises. LYC up 4.5%, ILU up 8.5% and AWC up 3.3%. Big miners and Gold stocks performed well, offsetting losses in the big banks on more news of Chinese government intervention in the stock market. Doubtful how sustainable this may be. BHP and FMG both rose over 1%. NST and GOR up 6% and 3.6%. The big bank basket fell 0.6% to $196.70. Tech uninspiring despite a positive NASDAQ lead. WTC down 2% and XRO down 0.9%. ZIP was up almost 13% at midday before giving up gains to finished up 1.4%. Healthcare and consumer discretionary stocks saw profit taking after a strong run. Dow Futures flat and NASDAQ futures up 0.4%.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.