Market Updates

ASX 200 rose 34 points to 7191 (0.5%). A solid grind higher with banks in demand. The Big Bank Basket up to $174.99 (+1.1%). CBA the standout with a 1.2% gain and WBC continues to find friends post-result up 1.4%. MQG had a solid day today up 1.8%, with insurers flat. MPL up 2.6% with results pleasing. REITs rallied as GMG up 0.5% and SCG up 1.9%. Industrials mixed, TLS eased back 0.7%, Tech better led by WTC bouncing 8.1% as buyers nibbled, the All-Tech Index rallied 2.4% as XRO rose 3.5% and ALU up 4.9%. Nvidia results perking up the whole sector. Old skool platforms doing better REA up 2.4%, and SEK rallying 1.4%. Staples still suffering a little. Healthcare slightly firmer, with CSL up 0.3% and SHL rallying 0.6%. RHC suffered as earnings disappointed, down 12.0%. In resources, iron ore stocks muted, Lithium stocks better, LRS leading the charge up 4.5%. PLS up 2.4%, and gold miners better. NST reported good results up 5.2%. Oil and gas bounced with WDS up 1.5% as strike now looks unlikely. In corporate news, plenty of action, QAN up 0.8% on record profits. APA fell 3.4% after the capital raise, IFL fell 10.7% on its underwhelming numbers. PTM also dipped 4.6% on results after hours last night. NEC slightly better than forecast, up 0.5%. CGC fell 10.8% on a trading update and worries on takeover bid, SIQ led the salary sacrifice sector lower on weaker-than-expected results, down 10.0%. Nothing on the economic front. Asian markets catching the Nvidia tailwinds up across the board. 10-year yields falling hard too. Dow Futures up 43 points. Nasdaq Futures up 186 points.

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US markets ended sharply higher, ending just off best levels, their biggest gain in nearly two months fuelled by weak PMI data across both the US and Europe, bolstering expectations that central banks would halt interest rate hikes to avert a recession. The Dow Jones rose 184 points (+0.54%). Dow at best up 246 points. S&P 500 posted its first 1% gain since 30-Jun, up 1.10%, and the NASDAQ posted its best day since 28-Jul, up 1.59%. Big tech led the gains in anticipation of Nvidia’s results Apple +2.2%, Meta +2.3% and Nvidia 3.2% prior to results (+6.99% after-hours market post results). US PMI fell to 50.4 in August, missing expectations of 52, indicating a sluggish increase in output for US firms in August, with overall activity level nearing stagflation. US treasury yields slipped on weak PMI results, with the 10Y yield falling 13.2bps and the 2Y fell below the 5% threshold. USD Index fell 0.14% after hitting a two-month high, and VIX dropped 5.8%.

• ASX to rise at opening bell. SPI Futures up 36 points (+0.51%).
• Copper up 1.09% for a fifth straight session, helped by surprisingly upbeat copper consumption data in China.
• Nickel +2.27%, Aluminium flat, Zinc +1.89%, Lead +1.53%, Tin +0.15%.
• Brent and WTI oil fell 1.17% and 1.67% as demand woes stemming from a build in US gas stocks and weak manufacturing data globally outweigh optimism.
• 10Y yield: US 4.20%, Australia 4.19%, and Germany 2.51%.
• Gold up 0.91%, helped by a pullback in US bond yields.

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ASX 200 rose 27 points to 7148 (0.4%), bouncing off the important 7100 level. Banks and BHP leading the way. Results continue to surprise.In every sense. The Big Bank Basket rose to $173.08 (+0.8%). Insurers bounced back, QBE up 1.5%, and SUN up 1.3%. MQG going nowhere, down 0.6%. REITs mixed with SCG and VCX easing back. Healthcare remains in ICU as CSL wallows, down 0.4%, RMD off 1.5% and COH falling 0.6%. Industrials were firm, TLS eased after a good run yesterday. WES up 1.2% and WOW rallied 3.5% on good results. COL continued to suffer on downgrades off 0.4%. Tech got whacked as WTC fell 19.6% on an earnings miss. The All-Tech Index cratered, down 1.8%. Resources back in favour, BHP up 1.9%, leading the miners higher. Commodity prices helping, FMG up 2.5% and RIO up 2.4%. Gold miners continued the rally, NCM up 0.4% and NST higher by 1.1%. Lithium stocks found some support, PLS up 1.0% and MIN up 2.8%. Oil and gas eased with WDS off 1.2% and STO continuing to fall on ho-hum numbers.

In corporate news, some big companies reporting today, WOW much better than COL. DMP rallied hard on job cuts and a new cunning plan. APA in a trading halt raising $750m to buy some Alinta WA assets. WOR rose 0.6% as profit dropped, REH off 2.4% on slowing demand, and PPM down hard on a dividend cut and a drop in profits.

In economic news, Australian Services PMI fell to 46.7 in August. Asian markets mixed again, Japan up 0.4%, HK up 0.5% and China off 0.9%. Dow Futures up 94 points. Nasdaq Futures up 65 points.

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Wall Street ended mostly lower overnight, ending just off worst levels. Dow down 175 points (-0.51%). Dow at best up 50 points. Dow at worst down 207 points. S&P 500 extended its August slide down 0.28%, weighed down by banks as S&P Global Ratings joined Moody’s in cutting some US lenders’ ratings amid a “tough” environment. NASDAQ flat, up 0.06%. Nvidia fell 2.8% on the eve of its quarterly report. Expectations surrounding Nvidia’s earnings are high as it may be the next catalyst to push tech stocks higher again. Analysts predict Q2 earnings may exceed expectations, with the only limit to growth being whether the chipmaker was able to get enough supply to meet insatiable demand. US treasury yields flat. 10Y yield down one basis point.  USD Dollar Index edged higher, up 0.25%, and the VIX fell 0.9%.

• ASX to fall at opening bell. SPI Futures down 17 points (-0.24%).
• Russell 2000 -0.28%.
• Treasury futures now indicate a 100-basis point rate cut by the Fed by late 2024, down from 130 bps a few weeks earlier.
• S&P 500 Banks Index down 2.41%.
• KBW Regional Banking Index down 2.66%.

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US equities closed mixed overnight. Dow down 37 points (-0.11%). Up 70 points at best. Down 252 points at worst. NASDAQ up 1.56%, while the S&P 500 rose 0.69% the upward movement was mostly driven by Nvidia +8.5% as HSBC raised its price target for the stocks and Tesla +7.3% recovering some of last week’s losses following news of more price cuts in China. Financial markets remain relatively subdued, lacking any shifts in the prevailing narrative as sentiment has turned somewhat pessimistic due to the ongoing upward pressure on interest rates. The bond market reflected this sentiment, as yields on 10Y and 30Y bonds reached their highest levels since 2007 and 2011, respectively. Despite speculation, Powell's upcoming speech at the Jackson Hole symposium is unlikely to include a decisive signal on the Fed's future course.

• ASX to open higher. SPI Futures up 17 points (+0.24%).

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 ASX 200 dropped 33 points to 7116 (0.5%) as results dominated. Banks slid on WBC NIM woes, down to $170.88 (-0.9%) for the basket. WBC dropped 3.1%, with ANZ off 1.0%. MQG better, up 0.8%, but insurers fell after IAG results, QBE down 1.5%. Industrials were mostly firm, WES up 0.4%, ALL up 0.7% and REH managing a 0.2% gain. REA rose as tech stock saw buyers, XRO up 0.6% and WTC rallying 0.3%. The All-Tech Index down 1.0%. Healthcare in ICU as CSL stumbled again, down 1.4%, RMD fought back from early losses, finishing down 0.4% COH continues to get a good hearing up 1.6%. REITs mixed, VCX down 4.1% with SGP up 0.2%. Resources recovered a little after China cut some rates but not by enough. BHP down 0.4% of results tomorrow, FMG up 0.4% and lithium stocks in demand, PLS up 2.5%, MIN up 1.0% and LTR doing well, rallying 2.7%. Oil and gas are slightly better, WDS unchanged, and coal stocks flat.

In corporate news, PMV announced a strategic review and the CEO pulled the pin rising 12.2%, BRG followed up 9.0% on better margins and new product launches. AD8 proved the critics wrong with a 10.7% on record results. ELD collapsed 10.8% on profit guidance and IRE cut its dividend and sold a business to pay off dent and collapsed 35.6%. A2M was skimmed 13.6% on more Chinese woes and RWC dropped 8.3% on housing slowdown.

Nothing on the local economic front. Asian markets mixed again, Japan up 0.2%, HK down 1.6%, China down 0.6%. 10-year yields steady at 4.27%.

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ASX 200 fights back to close up 2 points at 7148 after a wobbly start. For the week the ASX 200 is down 2.6% as results season and China woes continue. Banks eased back again, CBA down 0.6% with the Big Bank Basket sliding to $172.49 (-0.5%). MQG fell 0.6% but MFG rallied 13.3% on a special dividend and cost-cutting. Insurers flat. REITs were dominated by GMG which has rallied an extraordinary 12% in two days as Data centres a new focus. Elsewhere REITS were sold off. Industrials were mixed, TLS fell 3.2% on broker comments, REA down 1.2% as DHG continued to fall, down another 4.0%. Consumer stocks eased back, ALL down 1.6%, COL fell 1.8% on an automation update, Utilities slightly better with ORG pushing up 1.9%. Tech going nowhere.  In resources, Iron ore stocks on a bounce BHP up 1.4% ahead of results next week, RIO up 0.9% and lithium stocks finding small support. Gold miners better. Oil and gas eased and coal stocks fell.

In corporate news, results dominate, IMU fell 16.0% on a placement, ABG up 10.2% on results, LFS fell 1.7% on its results. No economic data locally, but Japanese inflation eased in core numbers. Asian markets weaker, Japan down 0.7%, China down 0.7% and HK down 1.6%. 10-year yields falling slightly, down to 4.23%.

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US equities close in the red overnight for the third straight day as a global bond market selloff intensified and tamped down enthusiasm for tech stocks. Dow ended near worst levels, down 291 points (-0.84%). Dow at best up 123 points. Dow at worst down 325 points. S&P 500 and Nasdaq fell 0.77% and 1.17%, respectively, booking losses for the third consecutive session amid renewed concerns about interest rates remaining higher for longer. US 10Y yields reached their highest levels in nearly 16 years, pressuring rate-sensitive tech sector Meta -3.1%, Microsoft -1.1% and Apple -1.5%. Weighing heavily on the S&P 500, Healthcare stocks took a hit, with CVS Health tumbling 8% as Blue Shield of California revealed plans to reduce reliance on CVS as its pharmacy benefit manager, opting to collaborate with others, including Amazon. This news led to a 1.9% dip in UnitedHealth and a 6.4% fall in Cigna. Wall Street’s fear gauge VIX jumped 6.6%. Higher oil prices lifted energy stock, with Exxon Mobil gaining 1.9% and Chevron up 1.7%

• ASX to slip. SPI Futures down 28 points (-0.39%).

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ASX 200 closed down 49 points at 7146 (-0.7%) as China and US worries weighed. Super Thursday results also disappointed from TLS to NXL. A worse-than-expected jobs number at 3.7% helped the ‘RBA is done’ narrative and caused a rally off the lows but lacked conviction. Banks were mixed with the Big Bank Basket down to $173.41 (-0.8%). MQG fell hard down 2.0% with insurers mixed. QBE down 1.6%. Healthcare also in trouble today, CSL off 0.7% and RMD snapping back to reality after outperforming in the storm. REITs mixed with results in focus. GMG up strongly 5.7%. Industrials weaker across the board with TLS down 2.8% after aborting plans to sell its infrastructure business. Consumer stocks eased too, WOW off 1.7%, COL down 1.5%, and TCL copping some downgrades off 4.9%. Tech eased but did recover with the All-Tech Index up 0.4% WTC off 0.4% and XRO down 1.8%. Miners recovered from lows in the iron ore space with BHP and RIO modestly higher. Lithium stocks under pressure as CXO dropped a bombshell falling 24.8% on a capital raise. Gold miners also on the nose, NCM down 1.7%, and EVN fell 4.8% on results.

In more corporate news, SUL rewarded shareholders with a special dividend and rose 2.9%. ING rose 14.8% on better-than-expected numbers, CXO dropped 24.8% on its deeply discounted raise,  ORA rose 3.4% on results and IPH in demand rising 10.8%. SHL dropped 5.7% as CV19 effects wear off.

On the economic front, jobs numbers showed a slip in the unemployment rate to 3.7%. Asian markets still under pressure, but modest losses. Japan down 0.3%, China off 0.1% and HK down 0.9%. 10-year yields higher at 4.29%.

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