Market Updates

US markets fell overnight, with the Dow down 1.81% as two Fed Officials called for continued interest rate increases off the back of weak retail sales data showing consumers are retrenching but still exceeded estimates.

The Dow Jones closed down 614 points (-1.81%). At best it was up 106 points, at worst it was down 641 points. The NASDAQ declined 1.24%, as rate-sensitive sectors declined, Tesla down 2.06% Amazon down 0.61%, and Microsoft down 1.89%. The S&P 500 fell 1.56%. In Europe, STOXX 600 +0.23%, FTSE -0.26%, CAC +0.08%, and DAX -0.03%. SPI Futures are down 31 points.

HEADLINES 

• BOJ has markets bracing for more bond, FX turmoil as shift seen inevitable.
• Wall St closes lower after weak data, hawkish Fed comments.
• Bed Bath & Beyond looks for buyer ahead of potential bankruptcy filing – CNBC.
• Oil eases 1% as U.S. recession worries offset China recovery hopes.
• U.S. dollar tumbles after weak data; yen flat as BOJ impact fades.
• China reports big jump in foreign capital inflows on reopening bets.
• Yields drop as retail sales miss expectations.
• Pound Flirts With Seven-Month High as Growth Fears Hamper Dollar.
• Gold Slides as Hotter US Inflation Keeps Hawkish Fed on Track.
• Chinese Travel Rebound May Take Months Amid Hurdles to Flights.

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

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ASX 200 closes up 7 points at 7393 (0.1%) in another tight-range day. Tiny late surge. Seems BoJ was not a catalyst after all. The song remains the same from the central bank. Good times and bad times from resources as Chinese authorities once again shake a waggly stick on iron ore prices. BHP down slightly, FMG up 0.8%, RIO up 1.1% and MIN up 0.3%. Lithium stocks remain dazed and confused.  PLS down 1.5%, IGO off 2.8%. Not a whole lotta love for gold miners today either, as NCM fell 1.8% and NST off 1.7%. Coal stocks had a celebration day, with WHC up 2.9% and NHC better by 3.0%. Healthcare stocks were on a stairway to heaven as CSL rose 0.8%, RMD bucked up 2.3% on broker upgrades, with FPH also doing well. Industrials mixed as REITS fell a little, old skool stocks rambled on, REA up 0.1% and SEK better by 1.0% with bond proxies trampled under foot, TCL off 0.5% and ALX off 2.0%. Banks becalmed with the Big Bank Basket unchanged at $187.93. In corporate news, RBL fell 11.4% as the bubble burst, TLX did well on revenue numbers, and a good outlook, NIC in a trading halt as it said thank you with a big new capital raise and AKE underwhelmed a little on their quarterly update. On the economic front, we had building approvals down as the House of the Holy commitments fell 5.2%. In Asian markets readying for Lunar New Year, China up 0.1%, HK unchanged% but Japan leaping on a lower yen up 1.7%. 10-year yields 3.56%. Dow futures are down 5 points. Nasdaq futures up 14 points.

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The Dow Jones fell 392 points (-1.14%) the NASDAQ finished 0.14% higher and the S&P 500 lost 0.20%. European markets were mostly higher, with STOXX 600 +0.40%, UK FTSE -0.12%, France +0.48%, Italy +0.31%, Greece +0.59%, and German DAX finished +0.35% higher. SPI Futures are up 14 points (+0.19%).

In commodities, Copper rose to a 7-month high on Chinese demand despite data pointing to weak demand in the near term. Aluminium was down 0.1% as data showed China’s aluminium production grew by 4.5%. Zinc and tin were down 0.3% and 0.1%. Nickel and lead were up 1.7% and 0.1%. Gold fell overnight from an 8-month high on hopes the Fed would take a less aggressive stance on interest rates. Iron ore down 1.1% overnight. Goldman-Sachs saying gold could hit $1950/oz in 2023 thanks to the Lunar New Year Holiday in China. Brent Oil and WTI were up 2.97% and 1.73%, the highest level since December on hopes of global demand increasing.

Tune in to Henry Jennings’ Pre-Market Podcast to get in the know for the day ahead. 

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ASX 200 closes down 2 points to 7386 (0.03%) in tight trading ahead of US reopening tonight and more results to come. Resources suffering today after iron ore stocks came under some pressure on Chinese moves. BHP failed to hold all-time highs falling 1.3% with RIO reporting quarterly today down 1.2% and FMG off 1.3%. Gold miners were in profit taking mode after the big run, NCM down 1.8% and NST off 1.5% as some brokers moved to negative recommendations. Lithium stocks remain under some pressure as did base metal stocks, S32 down 2.9% and IGO off 0.9%. Energy stocks mixed, oil stocks better led by WDS up 0.2% but coal not such a merry old soul after all, WHC off 2.3%. Banks gave up some early gains and were the swing in the market with the Big Bank Basket unchanged at $187.95 . Insurers slightly better but fund managers gave up yesterday’s gains. MQG down 0.4%. Defensive industrials firmed, CSL up 1.3% and RMD rallying 1.7%. WOW COL and EDV all having a good day as bargain hunters around. Tech stocks eased, XRO down 2.3% and WTC down 1.0%. The All-Tech Index down 0.7%. In corporate news, JBH showed that retail is not dead, following SUL yesterday. DTL rose 4.3% on an earnings update and HUB fell 4.5% on a $4.4m impairment. On the economic front, Chinese GDP came in slightly better than expected. Still not great though and shows stimulus is needed post CV19. Asian markets mixed Japan down 1.2%, China off 0.2% and HK down 1%. 10-year yields 3.60%.

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US Markets closed for Martin Luther King Jr Holiday.

• SPI Futures down 18 points.
• Gold eases as USD rallies slightly.
• US Dow Futures down around 38 points.
• Commodities mixed Copper down 1%. 
• Oil down 1.3%

European equity markets closed higher on Monday, with the STOXX 600 extending its 2023 rally to a fresh nine-month high led by retail, financial and media stocks. Domestically, the German DAX added 0.4% to above 15,139 for the first time since mid-February.

Davos 2023 – The World Economic Forum in Davos Starts Today.

• Big Oil insights of climate activist protests.
• Greta Thunberg's attendance at Davos a hot topic of conversation.
• Recession casts long shadow over opening of WEF Summit.
• Global recession in 2023 seen as likely in WEF survey.
• PwC survey says CEOs are the most gloomy on growth in a decade.
• Survey says two thirds of economists expected global recession this year.
• 18% of economists say recession this year is “extremely likely”.
• World Bank cuts 2023 growth forecasts quoting rate hikes, Ukraine war and economic slowdown.
• Manchester United host Davos party. Team for sale.

Tune in to Henry Jennings’ Pre-Market Podcast to get in the know for the day ahead.

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ASX 200 closed up another 60 points to 7388 (0.8%) as banks took up the baton again. The Big Bank Basket rose to $187.82 (0.95%). CBA up 0.8%, WBC up 0.7% with fund managers up strongly too, MFG up 2.9% and GQG up 2.6%. Insurers steady. REITs better again on rate outlook. GMG up 2.2% and SGP up 1.9%. Tech stocks also doing well with WTC up 4.0% and XRO up 4.6% with the Index up 2.6%. Lower rates helping. Industrials firmed, TCL up 1.3% and WES up 1.2%. Healthcare stocks firmed, CSL up 1.4% with SHL up 1.9% and FPH rallying 2.9%. Meanwhile, iron pre-stocks eased back from highs as China looks to clamp down on price rises. BHP up 0.1% with FMG under pressure, off 2.1%, Gold miners better, NCM up 2.4% and NST up 2.9%. Lithium stocks struggling to gain traction, INR doing well up 21.9% on US deal. Oil and gas stocks better, WDS up 1.6% and WHC up 2.4%. In corporate news, SUL had a positive business update rising 7.7%, BBN went down 11.6%, screaming on a dummy spit as December sales disappointed. BTH rose 13.6% on ARR jump and PNV up 2% on record revenue numbers. Nothing on the economic front. In Asia, Japan fell 1.3% ahead of BoJ policy meeting, China up 2.0% and HK up 0.7%. 10-year yields steady at 3.59%. US markets closed tonight. Dow futures up 37 points and Nasdaq futures up 10 points.

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Dow Jones up 113 points (+0.33%). Up 152 at best, down 274 at worst. Dow Jones up 2.0% for the week. S&P 500 up 0.41% and up 2.7% for the week. NASDAQ up 0.73% and up 4.8% on the week, the biggest weekly gain in two months. So far this month the S&P 500 is up 4.2%, the Dow Jones up 3.5%, the NASDAQ up 5.9%. At the same time, the VIX Volatility index is at a one-year low.

A good start to the US results season with all four major investment banks higher on the back of results with some beating estimates. We have Morgan Stanley and Goldman’s results on Monday. 

• JPMorgan up 2.5% on results. Beats estimates.
• Citigroup up 1.7% on results.
• Bank of America up 2.2% on results.
• Wells Fargo up 3.2% on results.
• UnitedHealth up 12.4% on results.
• Goldman Sachs and Morgan Stanley results on Monday.

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

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ASX 200 closed up 48 points to 7328 (0.7%) as the rally started to run out of juice in the short term. Banks took up the baton as the Big Bank Basket rose to $186.05 (+1.2). CBA up 1.3% and NAB up 1.6%. MQG rallying another 0.7% with insurers better, QBE up 0.8%. REITs continued to push higher with SGP up 0.5%, SCG up 1.4% and Fund Managers also better, GQG up 3.3% and MFG up 2.6%. Industrials were strong, TLS up 0.3%, WES up 0.7% and TCL ahead by 1.1%. ‘Old Skool’ platforms rallied too, REA up 3.6% and SEK up 3.9%. New tech better, WTC up 1.4% and XRO up 0.6%. The All-Tech Index up 1.2%. Resources were mixed, BHP better by 0.5% as it eyes $50. RIO up 0.9% and gold miners better but hardly the stuff of dreams today. Lithium stocks under some pressure with PLS down 4.1% and IGO off 1.9%. Energy stocks up with WDS up 1.2% and STO up 2.4% with coal stocks bouncing YAL up 1.6% and NHC up 5.1%. In corporate news, 360 gave us a business update with some job cuts helping sentiment up 11.1%. In economic news, home loan approvals tumbled YoY 24%. Housing lending fell 3.7% in November. Asian markets, Japan fell 1%, China up 0.8% and HK up 0.2%. 10-year yields up to 3.59%. Dow futures down 63 points, Nasdaq futures down 41 points.

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Bond yields tumbled overnight as US inflation slowed for the sixth straight month in line with expectations, opening the door for the Fed to downshift on rate hikes. The Dow Jones closed up 217 points. At best it was up 320 points, and at worst it was down 181 points, in a volatile trading day. The NASDAQ rose 0.64% and the S&P 500 finished 0.33% higher. In Europe, Stoxx 50 +0.7% FTSE +0.9% CAC +0.7% DAX +0.7%. SPI Futures are up 34 points (+0.47%).

Commodities – Copper proving unstoppable overnight as it continues to reach a 7-month high, up 0.6% as US consumer prices unexpectedly fell causing the prices to surge. Base metals all positive, nickel up 0.6%, lead up 0.4%. While Zinc, Tin, and Aluminium lead the way, up 1.2%, 2.3%, and 1.4% respectively. Gold rose 1% overnight as softening inflation data gave traders confidence. Brent Crude and WTI both continue to rise as China ramps up imports, up 1%. Iron Ore up 0.21% despite China claiming they will be finding the cheapest prices through a consortium.

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

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 ASX 200 surged again as resources boomed, the index up 85 points to 7280 (1.2%). Big miners in demand with BHP up 1.8% to another 52-week high, FMG up 2.8% and RIO up 1.5%. Lithium and rare earths better too, PLS up 4.5% and LYC up 2.1%. Gold miners mixed, NCM down 0.6% and NST up 0.9%. Energy stocks a little mixed, coal stocks eased, SMR down 2.5% WHC off 1.4% while oil stocks better, WDS up 2.1%, STO up 1.0%. Industrials once again firm but unexciting. REITs taking their cue from US peers and lower 10-year yields, GMG up 1.5%, SCG up 1.0%, healthcare up led by CSL up 1.2. Others slightly firmer. Banks another strong sector with the Big Bank Basket shaking off its recent torpor, up to $183.73 (1.6%). MQG rallied 1.6% as Goldman Sachs wields the axe. In corporate news, MAF downgraded expectations, falling 10.7%, GOR stumbled 3% lower with production 14% below consensus, the PDL/PTM deal is done and dusted. IRI flags an EBITDA rise but warned on cost pressures, up 10%. In economic news, good trade numbers helping sentiment for miners. Asian markets becalmed. 10-year yields slipping to 3.59% as bets increase that RBA will go another 25bps in Feb.

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