Market Updates

Dow Jones down 38 points (-0.12%). Dow up 119 at best, down 137 at worst. S&P 500 down 0.16%. NASDAQ down 0.45%. VIX Volatility Index down 3.1%. In Europe, STOXX 50 +0.1% FTSE +0.2% CAC +0.1% DAX +0.1%. SPI Futures are down 26 points (+0.37%).

• ASX to slip, February CPI pending.
• Wall Street ends down with tech; investors assess bank comments.
• Wall Street falls while bond yields rise with gold.
• Apple launches buy now, pay later service in U.S.
• Investors seek value in clobbered U.S. regional bank shares.
• US regulator cites 'terrible' risk management for Silicon Valley Bank failure.
• China's Alibaba to break up empire into six units as Jack Ma returns home.
• U.S. charges FTX's Bankman-Fried with paying $40 mln Chinese bribe.
• US consumer confidence rises as Americans shrug off bank failures.
• Nickel hits three-week high on short-covering and low stocks.
• Gold rises on dollar dip, banking optimism limits gains.
• Iron ore rises as China port inventory fall lends support.
• Clashes as French protesters rally against Macron's pension bill.
• EU countries approve 2035 phaseout of CO2-emitting cars.

Catch up on the latest news with Henry Jennings’ Pre-Market Podcast.

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 ASX 200 raced ahead by 72 points to 7034 (1.1%) as the Albemarle bid for LTR turbo charged the resources sector and lit the blue touch paper under the bombed out lithium stocks. LTR up 68.5%, CXO up 15.4% and PLS up 11.9%. Huge short squeeze across the board. A bid too in UMG up 30.81% did not hurt the positive sentiment that spilled into resources as a whole. BHP rose 2.0% with FMG up 1.2%. Base metals also doing well with CHN a star on reserve increase, up 8.9%. MIN up 6.0% and LYC catching my disease up 2.8%. Gold miners in a funk as profit taking took hold. NCM down 0.6%, NST down 0.8% and KCN falling 25.4% as it raised some money. Didn’t waste much time after production began at Chatree. Oil and gas better led by WDS up 4.8% and WHC up 6.1% with NHC up 4.2% Banks better. The Big Bank Basket up to $167.89 (1.0%) breathing a sigh of relief that things are settling down in the financial world. MQG rallied 2.0% and insurers and wealth managers better too. QBE up 1.0% and MFG up 3.7%. Industrials were firm. Nothing massively inspiring. Spots of red in some sectors, XRO down 2.9% and the All-Tech Index up 0.5%. Healthcare mixed, REITs better again, CHC up 2.8% and GMG up 0.4%. In corporate news, LTR was the talk of the town, UMG saw froth as it was bid for too. CHN up on a reserve upgrade and MP1 better as a new CEO has been announced, up 4.0%. ORG bid was finalised at around 891c depending on the USD. Few more hurdles with FIRB etc. On the economic front, retail trade better than expected. Something that Solly was telling us yesterday. Asian markets mixed, Japan down 0.2%, HK up 0.7% and China off 0.2%. 10-year yields back up to 3.29%.

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US markets mostly up overnight. S&P 500 up on news First Citizens BancShares would take on deposits and loans of failed Silicon Valley Bank, while tech-heavy Nasdaq closed down after a bit of pullback in big tech. Treasuries weaker, with the 2-year yield back over 4%, and both S&P 500 Banks Index and KWB Regional Banking Index finished up 3.1% and 0.6%, respectively. Dow Jones up 195 points (+0.60%). Dow up 326 at best. S&P 500 up 0.16%. NASDAQ down -0.47%. VIX Volatility Index down 5.9%. In Europe, STOXX 50 +0.8% FTSE +0.9% CAC +0.9% DAX +1.1%. SPI Futures are up 29 points (+0.41%).

First Citizens BancShares has agreed to acquire all the deposits and loans of failed Silicon Valley Bank in a deal that includes the purchase of ~$72bn of SVBs assets at a discount of 16.5bn. Shares in First Citizens BancShares shares up 53.74% following the rescue of the largest bank collapse since the 2008 financial crisis.

• ASX to rise; Brookfield pledges to speed up Origin energy transition.
• S&P 500 ends up slightly; SVB deal lifts bank shares
• Wall St equities gain, Treasury yields rise as bank worries ease
• Walt Disney Co begins 7,000 layoffs
• Tesla faces new race bias trial from employee who had $137 mln verdict cut
• Amazon loses bid to toss consumer antitrust lawsuit
• Silicon Valley Bank deal offers beleaguered banking investors relief
• World Bank warns of 'lost decade' in global growth without bold policy shifts
• US regulator sues top crypto exchange Binance, CEO for 'willful evasion'
• Oil rises over $3 on Kurdistan export halt, banking optimism
• Copper edges higher as Wall Street banking fears ease
• Gold slips more than 1% as risk appetite improves
• Iron ore snaps losing streak, but China demand jitters linger
• Ukraine shuts 'post-apocalyptic' battlefield town to civilians

ON THE CALENDAR

• Domestic data: Retail sales, RBA Connolly Speech.
• US data: Dallas Fed Manufacturing Index.

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ASX 200 drifted lower during the session off highs closing up 7 points at 6962 (+0.1%). Banks turned down slightly after a early positive start. CBA down 0.8% and ANZ off 0.4% with the Big Bank Basket at $166.15 (-0.4%). MQG off 1.5% slipping further down although insurers better, QBE up 0.9% and MPL up 1.6% as LFS seems to have taken the pressure and focus off their cyberattack. Money managers slightly firmer, MFG up 2.1%. Industrials better mostly, TLS up 1.0% and EDV up 2.8% on NSW election results and pokie reforms, with ORG doing well ahead of possible M&A news later this week, up 2.3%. Healthcare better led by COH up 1.9% and RMD gaining 1.7%. REITs in demand as yields fall, GMG up 2.1% and DXS up 0.4%. Tech slightly better as CPU rise 1.1% and the index up 0.4%. Resources were a mixed bag as disappointing Chinese data drew sellers. BHP down 0.2% and RIO off 0.6% with the lithium stocks once again under pressure. PLS down 3.4% and LKE tumbling 13.5% as the Chairman sold shares last week. Gold miners mostly better but unremarkable, NCM up 1.0% and NST up 2.6%. Energy stocks hit hard as WDS fell 3.4% and STO down 1.6% with WHC off 1.5%. On the corporate front, ALD fell 1.2% as it outlined outages at Lytton, IPD soared 111.86% on some good news and IVC officially rejected the TPG bid. KCN in a trading halt, raising $46m and CHN in a halt pending a resource upgrade. UMG in a halt too as it looks like it has drawn the attention of a suitor. PMV results today and paying a special dividend, down 2.5%. Nothing on the economic front, Asian markets eased. 10-year yields down again to 3.20%. Dow futures up 142 points. NASDAQ futures up 51 points.

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US stocks closed higher overnight marking the end of a volatile week as US Fed officials calmed markets over a potential liquidity crisis in the banking sector. European stock markets fell on fears that regulators and central banks have yet to contain the worst shock in the banking sector since 2008. Market sentiment was hurt by a sell-off of Deutsche Bank, which fell by as much as 15%, closing down 8.53%. Dow Jones up 132 points (+0.41%). At best Dow up 152, and at worst, down 300. S&P 500 up 0.56%. NASDAQ up 0.31%. VIX Volatility Index down 3.2%. In Europe, STOXX 600 -1.37% FTSE -1.26% CAC -1.74% DAX -1.66%. SPI Futures are down 3 points (-0.04%).

• World stocks gyrate as bank contagion fears bite
• Wall Street ends green as Fed officials sooth bank jitters
• Deutsche Bank tumbles as nervous investors seek safer shores
• Coinbase, SEC on collision course for 'existential' clash over crypto industry
• Block shares extend losses as Hindenburg report weighs
• US business investment appears weak in first quarter as orders rise moderately
• Venture capitalists race to land next AI deal on Big Tech's turf
• Gold set for fourth weekly rise as bank worries spark rush to safety
• Nickel surges as inventories slide and speculators wade in
• Iron ore rebounds as further fall in port inventories lifts sentiment
• Russia presses along Ukraine front after reports of Bakhmut slowdown
• U.S. and China wage war beneath the waves - over internet cables

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 ASX 200 falls 13 points to 6955 rallying quietly from the open as US futures stayed positive. Resources turn to be stronger today. Modestly. Lithium stocks bounced but not convinced, PLS up 3.8% and MIN up 0.6% with LTR rallying 4.2%. Iron ore stocks better, RIO up 0.2% and gold stocks doing well as AUD gold approaches $3000. EVN up 2.8%, NST up 0.8% and SBM up 4.0%. Oil and gas stocks drifting lower, coal eased. Banks were weaker again, CBA dropping 1.2% with NAB under pressure down 1.6% as the media continues to focus on the banking sector and echoes of the GFC. The Big Bank Basket down to $166.74 (1.2%). MQG giving back a little down 0.8% and wealth managers mixed. MFG up 2.5%. Insurers eased. Industrials mixed, WOW up 0.2% and EDV up 0.3% with ALL still doing well up 1.1% with REITs mixed. Tech eased with the All-Tech Index down 0.6%. In corporate news, EHE attracted the interest of PE with a 300c bid, Block was attacked by Hindenberg and dropped 18.4% on the allegations. WBT returned after its excellent adventure on being front run and dropped 10.3%. Nothing on the economic front locally. Japanese CPI at highs. Asian markets modestly weaker. 10-year yields down to 3.23%

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Wall Street closed higher despite some wobbles shrugging off some of yesterday’s losses as markets took comfort in US Treasury Janet Yellen’s reassurances that measures will be taken to keep deposits safe and that the Fed may pause rate hikes to offset recent turmoil in financial markets. Gains in US stocks were offset by losses in Europe as Switzerland, Norway, and Britain all hiked interest rates as their battle against inflation continues. Short-dated US Treasurys were rocked, falling 15.6bps as market participants pessimistic about the economic outlook bet the Fed will need to cut rates later in the year. Dow Jones up 75 points (+0.23%). At best Dow up 481, and at worst, down 165. S&P 500 up 0.30%. NASDAQ up 1.01%. In Europe, STOXX 600 -0.21% FTSE -0.89% CAC +0.11% DAX -0.04%. SPI Futures are down 39 points (-0.56%).

All three major US stock indexes clawed back into positive territory in the final hour of trade as Yellen continued her congressional testimony stating “The strong actions we have taken ensure America’s deposits are safe. Certainly, we would be prepared to take additional actions if warranted”. Large technology stocks the biggest winners, seen by many as a shelter in times of economic uncertainties. Meta +2.24%, Google +2.16%, Microsoft +1.97%, and Apple +0.70%.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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ASX 200 fell 47 points to 6969 (-0.7%) but steady at lower levels as we await the US and European markets. Resources in a funk with BHP off 0.8% and MIN down 2.9%. The Lithium and battery material stocks cratered hard, PLS down 4.7%, CXO off 3.8% and AKE down 4.3%. Rare earths also remain under pressure with LYC down 3.2% and ARU off 7.9%. Gold miners were firm but unspectacular despite bullion heading higher. NCM up 1.1% and NST rallying 2.0%. Oil and gas stocks eased back and coal not such a merry old soul as WHC fell 2.8%. Banks were weaker but no great dramas, the Big Bank Basket dropped to $168.75 (-0.4%). MQG back in the doghouse down 1.8% and wealth managers falling away again, MFG down 3.9% and IFL off 2.8%. Insurers weaker, QBE down 1.6%. Industrials were mixed. Defensives in staples doing ok, WES up 0.2% and WOW up 0.1% with BXB doing well up 0.8%. REITs eased back, tech down with XRO off 0.9% and NXT off 1.6%. Healthcare mixed, COH off 2.3% and RMD down 1.2%. In corporate news, BKW results helped the stock rally 3.1%, SOL lifted its dividend by 24% and WBT revealed a cash call and an SPP at 500c. SIG reported an increase in revenue of 6.2%. Nothing on the economic front. Asian market mixed, China and HK better but Japan slightly lower. 10-year yields eased to 3.31%. Dow futures up 141 points. NASDAQ futures up 60 points.

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Wall Street fell sharply overnight, falling from near two-week highs after the Fed hiked interest rates by the widely expected 25bps but signalled it may be on the verge of pausing future hikes amid recent volatility and turmoil in the financial markets. The 2-year and 10-year treasury yields retracted, and the USD index softened on the Fed’s dovish note. Dow Jones down 530 points (-1.63%), closing near low. At best Dow up 201, and at worst, down 540. S&P 500 down 1.65%. NASDAQ down 1.60%. In Europe, STOXX 50 +0.3% FTSE +0.4% CAC +0.3% DAX +0.1%. SPI Futures are down 52 points (-0.72%), losing most of yesterday’s gains.

• ASX to fall as Wall Street drops on rate angst.
• Fed delivers small rate hike, sees possibility of 'some additional' tightening.
• Powell warns inflation fight continues.
• First Republic shares fall sharply as Yellen says Treasury will not insure all deposits.
• UK inflation surprise pressures BoE to raise rates again.
• OpenAI tech gives Microsoft's Bing a boost in search battle with Google.
• China Evergrande offers bond and equity swaps in debt restructuring.
• GameStop's surprise profit triggers short squeeze, meme stocks rally.
• Gold firms on weaker USD.
• Copper rises for fifth day ahead of rates decision.
• OPEC+ likely to stick to its guns despite price slump, delegates say.
• Oil up 2% as dollar weakens on small US Fed rate hike.
• Russia hits Ukraine with missiles, drones as 'dear friend' Xi departs.

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Global equity markets closed up overnight as widespread fears over liquidity in the banking sector abated. All eyes are now on the Fed which is expected to wrap up its two-day policy meeting tomorrow with an expected 25bps hike. The USD dollar index edged lower, and short-dated treasury yields rose sharply. Dow Jones up 316 points (+0.98%). Dow up 349 at best. S&P 500 up 1.30%. NASDAQ up +1.58%. VIX Volatility Index down a huge 11.5%. In Europe, STOXX 50 +1.5% FTSE +1.8% CAC +1.4% DAX +1.8%. SPI Futures are up 62 points (+0.89%).

The banking sector has bounced back, continuing from Monday’s reversal. S&P 500 Banks Group, KBW Regional Banking Index, and STXE 600 Banks up 3.6%, 4.8%, and 3.8%, respectively. Despite some of its recent resurgence, the S&P 500 Banks Group is still down more than 18% this month. US regional banks get some relief, First Republic Bank +29.47% on news JPMorgan CEO Jamie Dimon is leading talks with other banks to stabilise it, via a possible investment. Peers also up,  Pacwest Bancorp +18.77% and Western Alliance Bancorporation +14.76%.

• ASX to rise, equities rally in Europe, New York.
• Global shares jump but bank 'whack-a-mole' not over.
• Wall Street ends green on bank bounce as Fed takes focus.
• First Republic leads surge in bank stocks as Fed comes into focus.
• Nvidia turns to AI cloud rental to spread new technology.
• Nike beats revenue estimates on strong demand for sneakers.
• Fed rates, projections, stability concerns a 'mess' to be sorted.
• Lower mortgage rates boost US home sales in February.
• Social media-driven bank runs burden regulators with a bigger problem.
• Gold retreats in run up to Fed decision.
• Copper prices climb on demand pick-up, weaker dollar.
• Oil prices rise for second day as banking fears fade.
• Putin, Xi pledge friendship but talks yield no Ukraine breakthrough.
• 'Weakened' Macron sticks with pension bill, eyes new reforms.

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