Market Updates

 ASX 200 closes up 47 points to 7558 (0.6%) as 10-year yields tumble and rate sensitive stocks rally. Banks leading the charge higher with CBA hitting records, ANZ screaming ahead up 2.3% and the Big Bank Basket up to $192.72 (1.5). ASX up 2.5% and fund managers cheering up, even MFG up 1.4%. MQG lagging a little. Insurers under a little pressure after IAG warning on margins. Industrials doing very well, TLS up 0.7%, WOW up 0.7% and WES rallying 1.3% with TCL up 0.9%. Tech better in places, CPU rallied 3.8% as traders squared books, WTC fell 2.4% and XRO down 0.7% with the All Tech Index up 0.8%. REITS doing well, GMG the star up 2.8% with SGP in the frame too up 3.0%. Healthcare soared led by CSL which is trying to break out from 4 years of slumber. Positive numbers from competitor helping up 3.0%. Resources were in a world of pain as sector rotation continues, BHP off 1.9% and RIO down 2.0% with FMG falling 1.3%, lithium stocks better, PLS up 1.9% and AKE up 0.8% with gold miners playing Duke of York marching up and then back down again. NCM down 2.9% and NST off 4.0%. Oil and gas finding support with STO up 0.9% and WDS up 0.7%. Coal stocks slightly better. In corporate news, JHG doing well up 12.9% in latest FUM numbers. On the economic front we got some lending numbers and Asian markets slipped on tech woes in HK. 10-year yields falling to 3.37%.

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The S&P 500 rose to its highest level in five months on Thursday as better-than-expected Meta results further improved sentiment around technology shares, which led the market lower last year.

The broader market index jumped 1.47% to 4,179.76, or its best level since August. Meanwhile, the tech-heavy Nasdaq Composite advanced 3.25% to 12,200.82, or its highest level since September. The gains come ahead of a trio of Big Tech results after the bell in Apple, Amazon and Alphabet.

Apple down 3.5% after hours, Amazon down around 5% and Alphabet down around 4.5%. Atlassian down 12%.

ECB and BoE raise rates 0.5%.

USD stronger. Gold drops 2%. Oil down 1.6%.

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 ASX 200 gave back nearly all of the early gains closing up 10 points at 7512 (0.1%) as big resources saw profit-taking across the board. Had to happen at some stage. BHP fell 1.4% with RIO under serious pressure having found the capsule down 2.3%. FMG held up better. Gold miners were superstars, NCM up 3.7% with NST up 4.6% and DEG up 3.4%. Lithium stocks better, LTR up 2.3% and CHN doing well up 6.2%. SYA too bouncing back up 5.9%. Oil and gas stocks slid as WDS fell 1.0% and STO off 1.6%. Coal stocks ease, WHC down 1.2%. Industrials and tech the winners today. Tech stocks powering ahead as Meta delivered. WTC up 6.8%, XRO surging 7.5% and ALU up 3.5%. The All-Tech Index up 3.6%. REITs better, GMG up 0.9% and MGR up 1.7%. Interest rate sensitive stocks also doing well, TCL up 0.9% and AIA up 1.0%. Healthcare still trundling higher, CSL up 1.0% and FPH up 0.6%. RMD a slight struggle, off 0.7%. Old Skool platform stocks better too, REA up 3.0% and CAR up 2.0% and SEK doing well up 5.4%. Banks slipping off highs with the Big Bank Basket down to $189.89 (0.5%). Insurers falling hard with QBE off 4.8%. MQG kicks higher by 1.8%. In corporate news, PNI disappointed with results falling 2.7%, ASX has two new board members and DRO in a halt as it raises money. On the economic front, building permits jumped 18.5% MoM in December 2022. Asian markets mixed, HK up 0.4% the best of the bunch. Dow Jones futures down 42 points. NASDAQ futures up 122 points.

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The S&P 500 gained 1.05% to 4,119.21, reversing an early decline of almost 1%. The Nasdaq Composite added 2% to 11,816.32, boosted by gains in chipmakers following strong earnings from  AMD. Meanwhile, the Dow Jones Industrial Average rose 6.92 points, or 0.02% to 34,092.96 , after sliding more than 500 points at the day’s lows.

Fed chief Jerome Powell soothes the market nerves despite a 0.25% rate increase.
USD falls, gold rallies. AUD at 71.40c Commodities and oil ease.

The big news after hours was Meta and its results together with a US$40bn stock buyback. The stock rallied another 17% on the news.

Headline inflation in the euro zone came in at 8.5% in January, according to preliminary data released Wednesday. In December, the rate was recorded at 9.2%.

ECB and BoE to come tonight.

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 ASX 200 rose 25 points to 7502 (0.3%). Some caution crept in ahead of the FOMC meeting. Resources firmed but unspectacular, BHP up 0.3%, RIO bouncing 1.4% and FMG up 0.4%. Lithium stocks slightly better but no great shakes, PLS up 0.4% and IGO up 1.0%. Gold miners eased back especially in the second liners, SBM, DEG and SLR. NST one of the positive ones up 0.7%. Oil and gas slid with WDS down 1.4% and STO falling 1.0%. Coal stocks eased with WHC down 1.6%. In the industrials, tech was varied, WTC down 1.7% with XRO eking out some gains. REITS firmed GMG up 1.2% and GPT up 1.3%. Healthcare better, CSL leading up 1.2%, RMD up 0.4%. Banks mixed with CBA coming off record highs, WBC down 0.5% and the Big Bank Basket steady at $190.76. In corporate news, FLT returned from the cap raise and acquisition with the shorts running for cover, up 8.1%, well off highs.. CCP turned positive after 1H results up 1.7%. TRS CEO has resigned. NUF reaffirmed guidance. On the economic front RBA’s head economist said inflation had peaked in late 2022. In Asian news Caixin manufacturing PMI not as strong as hoped at 49.2 in January. Asian markets choppy on the news. Barely changed though. 10-year yields up to 3.57%.

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US markets were up overnight, adding to January's rally, as signs of easing labour costs and cooling inflation helped boost the market. US treasury yields and the dollar index declined. Exxon and GM up 2.2% and 8.35% after positive earnings releases, while McDonald’s and Caterpillar were down 1.39% and 3.52% on their results.

The Dow Jones closed up 369 points (+1.09%). At best it was up 378, and at worst it was down 52. The S&P 500 was up 1.46%, and the NASDAQ was up 1.67%. In Europe, STOXX 50 gained 0.15% FTSE -0.17% CAC +0.005% DAX -0.2%. SPI Futures are up 44 points (+0.59%).

Copper rose 0.20% overnight following a fluctuation in prices that reached seven-month highs before falling due to the Fed's hawkish tone, which strengthened the dollar making industrial products more expensive for buyers using other currencies. Base metals showed mixed results, with Aluminum and Nickel up 1.74% and 3.07%, while Zinc, Lead, and Tin fell 1.11%, 0.14%, and 0.62%. Gold gained 0.30%, marking its third consecutive monthly increase, backed by a weak dollar and expectations around slower rate hikes from the Fed. WTI rose 1.26% while Brent fell 0.61%, despite recent data indicating a sharp rebound in Chinese manufacturing and services activity in January. Bitcoin up 1.97% to $23k, up 39.1% for the month.

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 ASX 200 slipped 5 points to 7464 (0.1%) as an early rally reversed. The index does not tell the whole story though with huge volatility in some sectors. Some caution crept in ahead of the Fed and US results and end of month book squaring taking the wind out of the lithium sector and golds. Resources were smashed although BHP, RIO and FMG holding up but S32, IGO and PLS gave up the uneven struggle and threw in the towel short term, Quarterlies dropping all over the place. Gold miners failed to impress as NCM fell 1.2%, NST off 1.7% and EVN falling 2.4%. Rare earths too in the headlights, LYC down 3.3%, MIN off 3.9% and CXO falling 5.7% in lithium. Nasty end to the month from the resource sector. Oil and gas mixed, coal eased, NHC off 0.3%. Banks were flat with the Big Bank Basket unchanged yet again at $190.69. Insurers mixed and money managers eased, GQG off 4.4%. REITs slipped after some good sessions, GMG off 0.8% and CHC down 2.3%. Tech stumbled lower, CPU off 0.6% and XRO down 1.1%. The index dropped 1.0%. Healthcare recovered as defensives generally improved, CSL up 1.7% and RMD up 2.4% after a big drop yesterday. WOW flying on retail numbers up 3.8% and COL up 2.4%.
In corporate news, it was all about quarterlies, MP1 were smashed 24.7% on a disappointing result, PBH in similar fashion as it extended its deal with NBC, down 17.4%. SYA dropped 11.9% on a successful ore crushing trial, PWH rallied hard up 5.0% on a UK acquisition and NXD starting to look interesting on an update, up 5.8%. FLT in a halt on a capital raise and UK acquistion.
On the economic front, the December retail numbers missed by a country mile and showed that the Black Friday sales pulled spending out of Xmas. We got slightly better Chinese PMI numbers today. In Asia, Japan eased 0.2%, HK fell 1.2% and China off 0.8% after a huge run. 10-year yields at 3.52%. No great shakes post retail sales numbers.

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US markets fell overnight weighed down by declines in the tech sector and other mega-cap shares, leading into a full week of central bank announcements and earnings reports from big-tech companies including Alphabet and Meta. 

More than 100, S&P 500 companies are expected to report this week as well as the closely watched U.S employment data that may shed some light on whether progress has been made to bring inflation down. US treasury yields rose, the dollar index is up, and oil fell as the market awaits clues about the Fed’s path forward.

The Dow Jones closed down 261 points (-0.77%). At best it was up 77, and at worst it was down 283. The S&P 500 fell 1.30%, and the NASDAQ was down 1.96%. In Europe, STOXX 50 -0.5% FTSE +0.3% CAC -0.2% DAX -0.2%. SPI Futures are down 10 points (-0.13%).

 On the corporate front, those having earning reports due this week including Apple (-2%), Amazon (-1.6%), and Alphabet (-2.4%), Meta (3.1%) closed in the red. Meantime, Microsoft and Tesla fell 2.2% and 6.3% respectively.

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ASX 200 fell 12 points at 7482. Resources came under a little pressure as China came back online and RIO fessed up to losing a radioactive capsule. RIO down 1.1% on the news, BHP off 0.6% and FMG off 1.3%. Lithium stocks in demand again as Chinese producers making record profits, PLS up 2.0%, AKE up 1.1% and rare earths also doing well with LYC up 6.9% with ARU continuing  1.8% higher. Quarterlies helping sentiment. Gold miners steady and better in places, SBM up 6.1% and NST rallying 1.0%. Oil and gas steady with coal stocks steadier after a dismal day Friday, WHC down 0.5% and NHC 0.7% better.  In the industrials, REITs continue to find buyers, GMG up 1.1% and CHC rallying 2.2%. 'Old Skool' platforms better too, REA up 2.8% as first cab off the results rank. Tech better following Nasdaq higher with the Index up 2.2% and XRO up 3.1% with WTC better by 5.2%. Healthcare under pressure, RMD fell hard on results and comments, down 6.8%. Banks flat with the Big Bank Basket unchanged. In corporate news today, plenty of quarterlies again, SUN and IAG hit by floods in NZ down 2.0% and 3.7% respectively. LFS soared 9.1% on news that DJs will be using it as card provider. LYC soaring on quarterly. OZL sees record output but pricing pressures from higher energy prices. Nothing on the local economic front. In Asia, mixed results as Lunar New Year ended. 10-year yields up to 3.56%. Dow Jones futures down 105 points. NASDAQ futures down 54 points.

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The Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to finish at 33,978.08.

All the major averages posted a positive week and are on pace for a month of gains. The tech-heavy index rose 4.32% and closed out its fourth week of gains. It’s on pace for its best monthly performance since July. The S&P and Dow added 2.47% and 1.81%, respectively, this week.

Tesla up 33% last week.

Big week for central banks. Fed, BoE and ECB the focus.

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

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