Market Updates

ASX 200 rose another 48 points to 7088 (+0.7%) up for a fifth consecutive session, bouncing back from 6,890 levels just last Wednesday. Almost all sectors finished higher. Consumer discretionary is the top performing sector today as RBA rate hike expectations tapered off, ALL up 1.1%, DMP up 2.9%, and TLC gained 1.3%. Iron ore got a nice boost from Chinese stimulus package talks, BHP, RIO and FMG all up over 1.3%. Tech and REITS held onto gains despite a turnaround in short-term treasury yields. WTC up 2.1%, CPU up 1.7% and SCG gained 0.8%. All-Tech Index up 1.3%. Bullion prices hold steady around US$1,860, up ~1.5% this week, NCM in demand, up 0.2%, while NST and EVN finished lower. Lithium stocks rallied, LKE up 5.4%, PLS gained 2.0% and AGY up 2.9%. Citi has forecast the commodity price to track sideways for the next 12-18 months but is long-term bullish. Big banks mixed, NAB and ANZ in favour up 0.5% and 0.3% while CBA and WBC finished in the red. Big Bank Basket up 0.1% to $177.02. Insurers OK, QBE up 1.6% and SUN gained 1.5%. Healthcare traded in the red almost all day before an afternoon rally got them over the line, CSL down 0.3% RMD up 0.5%. In corporate news, BOQ fell 7.4% on ugly results. TLS +0.8% announced its intention to acquire Versent for $267.5m. CXL up 10.1% on positive investor presentation. QAN +2.7% Chairman Richard Goydor to retire prior to the next AGM, and IAG +0.2% held its AGM presentation and reiterated FY24 guidance. Nothing noteworthy on the economic front today. FOMC meeting minutes early tomorrow morning. Market to comb through for interest rate clues, but information is likely moot now following the latest rounds of Fed Speak. Asian markets are up, Hang Seng up 1.2%, TOPIX up 0.1%, Shanghai Composite 0.2%. Bond yields mixed, 10Y yield down 3bps to 4.43%, 2Y yield up 4bps to 3.99%. AUD let go of earlier gains, down 0.2% to 64.21US cents. Dow Jones futures down 5 points, and NASDAQ futures up 24 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 rose for a third consecutive day following more dovish comments from Fed officials pushing bond yields sharply lower. The Dow Jones ended up 135 points (+0.4%). The Dow traded higher all day, up 294 points at best. Meanwhile, the S&P 500 approached 4,400 but fell short, up 0.52%, and the NASDAQ gained 0.58%. US treasuries tumbled, with the 10Y yield down 14.6bps and the 2Y down 12.6bps, along with the US dollar, with the USD Index falling 0.29% as risk appetite improved. On the corporate front, US earnings season has commenced with PepsiCo (+1.9%), surpassing revenue and earnings expectations. Among stocks, Amazon rose 1% at the beginning of its Prime Day Sale, and Rivian advanced 4.6% on broker upgrades.

ASX to open higher. SPI Futures up 30 points (+0.42%).

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 blasted 70 points higher to 7041 (+1.0%) as bond yield fell hard on safe-haven buying of bonds. Talk of rate cuts as Israel/Hamas conflict the focus. Gold miners are better but not spectacular, with NST up 1.5% and EVN up 0.3%. Lithium plays bouncing hard as a short squeeze takes hold. PLS up 6.2%, and IGO up 3.5%. LRS having a good day too on broker upgrades, up 7.6%. Big miners off highs with BHP unchanged, FMG up 0.8%. Oil stocks modestly higher as crude rolled over WDS up 1.3% and STO up 0.5%. Some buyers emerged in base metals, although uranium stocks eased back, PDN down 1.5% and BOE off 4.8%. Banks better again ahead of results next month, CBA up 0.7% and ANZ rising another 0.6%. The Big Bank Basket up to $176.90 (0.6%). Insurers better, and MQG up 1.3%, with MFG bouncing slightly up 4.2%. REITS rallied hard on yield falls, GMG up 2.4% and VCX up 2.0%. Tech also rallying on lower yields, XRO up 4.4% and WTC better by 2.1%, with the All-Tech Index up 2.3%. Industrials firmed, CSL and healthcare stocks better, TLS did well, up 2.1%, and staples also in demand. In corporate news, ORG rallied 5.5% as the ACCC gave Brookfield the green light, WBT up 4.9% on Israel update, CXO up 7.4% on a broker upgrade. In economic news, NAB Business survey out and steady as she goes. ANZ Consumer sentiment rose slightly. Asian markets were better as Japan returned from Sports Day, up 2.1%, China down 0.5%, and HK struggling with Typhoons. 10Y yields fell to 4.45%. Dow Futures up 6 points. NASDAQ Futures up 23 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 markets finished higher overnight, recovering earlier losses following fresh remarks from Fed officials bolstering confidence the Fed will refrain from lifting rates this year amid rising oil prices and conflict between Israel and Hamas. The Dow finished near best levels, up 197 points (+0.59). Dow at best up 224 points. Dow at worst down 154 points. The S&P 500 is up 0.63%, and the NASDAQ rose 0.39%. US bond markets were closed overnight for Columbus Day. Traditional safe-haven assets were in demand amid conflict. Gold rose 1.58% and the USD Index edged higher, up 0.04%. Among stocks, US energy companies led gains buoyed by higher oil prices, Exxon Mobil up 3.5% and Chevron up 2.8%. Defence stocks also rallied, with the Aerospace & Defence index ending 5.6% higher, its largest one-day gain since November 2020. Conversely, Airlines and travel companies were hit hard, with Carnival, United Airlines, Delta Airlines and American Airlines all down over 4% on travel disruption concerns.

ASX to open higher. SPI Futures up 30 points (+0.43%).

• Russell 2000 up 0.60%.
• November CME FedWatch Tool now at 87.5% probability the Fed will hold rates at the next FOMC meeting up from 72.9% yesterday, and December FOMC meeting at 73.2% probability up from 57.6% yesterday.

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 gave back most of its gains to end up only 16 points to 6970 (0.2%). After a strong start, caution prevailed, US futures pointed to a negative open and confidence was sapped. Events in the Middle East in focus with gold miners and oil stocks in demand. NCM up 4.7%, NST up 4.0% and EVN up 6.3% leading the charge, lithium stocks on the nose again except for LTR unchanged on the latest assault from Camp Gina. Iron ore stocks mixed, FMG dropped 1.9% despite an announcement on power, RIO unchanged and BHP up slightly. Oil and gas stocks also doing well as crude prices held the 4% gains on the war, WDS up 3.1% and STO rising 4.2% with KAR up 5.7%. Coal stocks also benefitted, WHC up 2.2%. Banks were slightly higher with ANZ up 0.4% the standout. The Big Bank Basket pretty much unchanged at $175.84. Insurers slipped and MQG fell back again, down 0.6%. REITs also off slightly, GMG down 0.1%. Industrials lacklustre with TLS off 0.3%, tech slipping as the All-Tech Index dropped 0.2%. Travel stocks are down, QAN falling 3.8% on higher oil and war issues. In corporate news, MYR appointed a new chair, and on the economic front, the RBA ordered the ASX to “redouble its efforts” to improve its corporate governance and risk management culture. Asian markets ease with China back from holiday break, Japan closed for Sports Day China off 0.6% and HK closed for a typhoon. 10-year yields ease to 4.52%.

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 rallied Friday, led by gains in mega-cap tech stocks after non-farm payrolls rose the most in eight months, signalling a tight labour market. The Dow Jones rose 288 points (+0.87%) in a choppy day of trade. Up 438 at best. Down 273 at worst. The S&P 500 and NASDAQ registered their largest daily gain since late August, up 1.18% and 1.6%. Markets initially fell after jobs data but rallied back late morning. Notable gainers include Nvidia +2.4%, Microsoft +2.5%, Meta +3.5%, Google 2.0% and Apple +1.5%. US 10Y yields rose over 13bps after the jobs report, hitting a fresh 16-year high of 4.8874%, adding to this month’s steep sell-off before easing back slightly, finishing up 8.9bps. USD Index eased 0.19%, snapping an 11-week winning streak after hitting its highest level in 11 months earlier in the week. Among stocks, Exxon Mobil slipped 1.67% on news the company is closing in a deal to buy Pioneer Resources for ~US$60bn. GM and Ford rose 1.9% and 3.2%, respectively, after UAW said there would be no new strikes this week.

• Weakening dollar speeds up copper gains ahead of China market re-opening.
• Gold attempts rebound, but heads for second weekly dip on rate-hike fears.
• OPEC raises oil demand view in long-term outlook, sources say.
• Russia lifts ban on most diesel exports.
• Oil prices rise, but post biggest weekly decline since March.
• Europe’s gas stocks at record high going into winter 2023/24.
• Norway's oil production seen rising 5% in 2024.
• US drillers cut oil and gas rigs for third week in a row.
• Copper Study Group expects big supply surplus in 2024.
• Rystad sees oil at $60 a barrel by 2027 as demand peaks.
• Resilient China demand supports copper prices, boosts local aluminium prices.

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 rose 29 points to 6954 (+0.4%) ahead of NFPs tonight. Banks led the charge higher with the Big Bank Basket at $175.74 (+1.2%). CBA up 1.1%, with WBC the standout, up 2.1%. Insurers rallied, QBE up 2.7%, and MQG doing better up 0.5%, but MFG fell 18.5% on lower FUM numbers again. REITs slightly easier after a good day yesterday. GMG down 0.9% and SGP down 0.5%. Healthcare mixed, although CSL finding some support, up 0.3%. RMD eased 1.7% after gains yesterday. Industrials slightly better, WOW up 0.3% and COL doing well up 0.6%, with Tech relatively flat. The All-Tech Index flat, with XRO falling 0.6%. Meanwhile, in resources, lithium stocks remained under pressure as brokers rushed to downgrade. PLS down 0.8%, and IGO falling another 4.4%. Iron ore miners are better, BHP up 1.2%, with gold miners finding some friends. EVN up 2.5%, and NST up 1.3% on some bargain hunting. Oil stocks eased slightly as crude steadied a little, WDS down 0.4%. In corporate news, RIO rose 1.1% on news of a US$100m loan to infrastructure builders for Simantou in Guinea. GQG rallied 3.1% on FUM news. In economic news, the RBA released its latest financial stability report, showing no significant rise in loan issues as employment stays strong. Asian markets mixed as Golden Week nears an end. HK up strongly. European markets to open around 0.4% higher. 10-year yields steady at 4.54%. Dow Futures down 35 points. NASDAQ Futures down 5 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.

The Dow Jones Industrial Average lost 9.98 points, or 0.03%, to close at 33,119.57. The S&P 500 dipped 0.13% at 4,258.19, and the Nasdaq Composite traded down 0.12% to end at 13,219.83.

Energy is this week’s biggest loser, followed by the beaten-down utilities sector. Both sectors are down 5.9% and 4%, respectively.

Weekly Jobless Claims came in at 207,000 for the week ending Sept. 30, up just 2,000 from the prior week’s numbers. Economists had forecasted 210,000.

The 10-year Treasury yield initially ticked up after the jobless claims report before inching down. It was last yielding at 4.714%.

•  US mortgage rates rose for a fourth straight week, reaching the highest level since December 2000. 
• U.S. online sales to grow 4.8% in crucial holiday season -report.
•  The CNN Fear and Greed index remains in Extreme Fear territory, holding at 22. 
• WTI at lowest level in over a month after this week's selloff.
• Gold extends decline for ninth day as fears of higher US rates weigh.
• Economic news today: China CPI and PPI September; China trade balance, exports and imports September 

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 shrugged off early indifference to push off the 6900 level to close at 6925, up 35 points (+0.5%). Banks and industrials leading the bounce from oversold levels. The Big Bank Basket rose to $173.59 (+0.9%). CBA up 0.9%, and NAB up 0.7%. Insurers steadied, fund managers found their feet, and MQG up 1.1%. REITs found support as GMG rose 2.6% and SCG up 2.9%. Industrials too finding bargain hunters, TLS up 1.1%, REA up 2.6%, and WOW rallying 1.5%. Healthcare is better, although CSL still wallowing. Tech following US tech higher, with the All-Tech Index up 1.4% and ALU up 1.6%.  Resources dragged. BHP down 0.7%, RIO off 1.5% and lithium stocks under pressure, PLS down 2.7% and IGO off 4.0% on some broker chat on downgrades. Gold miners steadied, NCM up 1.8% on a $1.10 special dividend. Oil and gas recovered from early lows. In corporate news, not much around again, WGX rallied 2.5% production guidance, PXA fell 1.8% after announcing a UK acquisition. On the economic front, trade numbers cheered, and spending data suggested the economy is still doing ok. Asian markets rallied on slightly higher oil prices and better US sentiment, Japan up 1.8% and HK up 0.8%. Dow Futures down 13 points and NASDAQ Futures down 2 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.

U.S. stocks closed higher on Wednesday.

The Dow Jones Industrial Average added 127.17 points, or 0.4%, to close at 33,129.55. The S&P 500 gained 0.81% at 4,263.75. The Nasdaq Composite rose 1.35% at 13,236.01.

Tesla up 5.9% and Amazon, Google, and Microsoft all up around 2%. Growth in US services sector slowed along with US private payrolls increasing less than expected. Equity markets viewed these results as reducing the chance of a Fed rate rise however all eyes remain on the key US jobs number expected Friday night (our time). In Washington, republicans Steven Scalise and Jim Jordan announced they will seek to replace Kevin McCarthy as Speaker for the House of Representatives.

ASX futures are up 31 points. EU markets were mixed with the STOXX 600 down slightly, FTSE down 0.77% while Germany up 0.1% and France flat. UK PM Sunak officially scrapped the northern leg of the proposed HS2 high-speed rail (from Birmingham to Manchester). The project was aimed at reducing Britain’s geographic income gap and turns a spotlight on the long delays and blown out budgets often experienced by major infrastructure projects in the country. This move is expected to free up ~£36bn which Sunak has declared will be invested into other transport areas.

Oil suffered heavy losses overnight with Brent and WTI both falling over 5% as gasoline stocks rose by 6.5m barrels, far exceeding expectations of a 200k barrel rise. Reasons for the decline reported on newswires included the overnight economic releases, flooding in NY and depressed demand after a 30% spike in prices in Q3 caused a “counter season plunge”. How long the price remains on decline is unclear however with the Saudis continuing their voluntary 1m barrel / day supply cuts until at least the end of the year.

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.