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US equity markets settled with modest losses after a choppy session, struggling to extend the recent rebound as Treasury yields resumed their march higher - Dow fell -100-points or -0.33%, The broader S&P500 lost -0.67%, with Real Estate (down -2.56%) leading ten of the eleven primary sectors lower. Energy (up +2.94%) was the only primary sector to advance. The Nasdaq fell -0.83%. Netflix Inc jumped +13.09% after the streaming giant posted a stronger-than-expected result at the top and bottom lines after the close of the previous session. The small capitalisation Russell 2000 lost -1.72%.

Strong growth in energy demand in the Indo Pacific not just Europe is driving up the LNG price.

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Morgans AM: Wednesday, 19 October 2022 by Morgans Financial

Morgans AM: Tuesday, 18 October 2022 by Morgans Financial

US equity markets erased early gains to steel sharply lower on Friday (14 October), failing to build on the previous session’s strong rally after the latest University of Michigan monthly survey of US consumers recording a worsening of inflation expectations - Dow fell -404-points or -1.34%, The broader S&P500 lost -2.37%, notched its seventh negative close in eight days. Consumer Discretionary (down -3.88%), Energy (-3.71%) and Information Technology (-3.41%) all falling over >3% to lead all eleven primary sectors lower. The Nasdaq dropped -3.08% to end at 10,321.39, its lowest settlement since 2 July, 2020. Tesla Inc declined 7.55% and Lucid Motors -8.61%. The small capitalisation Russell 2000 lost -2.66%.

We think the increase in government bond yields and the threat of slowing global economic growth will keep risk assets such as equities under pressure. However, we think Australian equities will fare better than global peers.

Download the latest edition of Investment Watch here: https://morgans.com.au/research-and-markets/economics-and-strategy/Investment-Watch-Spring-2022-Outlook

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Morgans AM: Friday, 14 October 2022 by Morgans Financial

US equity markets - Dow eased -28-points or -0.10%, The broader S&P500 lost -0.33%. Utilities (down -3.42%) and Real Estate (-3.42%) led eight of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +0.75% gain. Intel Corp rose +1.13%, with Bloomberg reporting that the company may fire thousands of workers by the end of the month, around the same time the chip manufacturer reports its third quarter result (27 October) amid a tough year for semiconductor makers. Intel has around 121,100 employees worldwide. While the report did not include geographical specificity concerning the targeted jobs, it said the sales and marketing departments could see up to 20% reductions in staff. The Nasdaq dipped -0.09%. The small capitalisation Russell 2000 slipped -0.3%.

Rapid growth in the Indo Pacific is generating strong demand for Australian energy exports.

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The S&P500 and Nasdaq extended declines into a fifth consecutive session following choppy trading, pulled lower in part by the announcement from the Bank of England (BoE) that it would end its emergency intervention in the UK bond market by Friday (14 October) - Dow added +36-points or +0.12%, paring an earlier session rally of as much as +400-points. Amgen Inc paced gains for the Dow with a +5.72% gain, with the biotechnology company buoyed by an upgrade to an “overweight” recommendation (US$279 target price) by analysts at Morgan Stanley. Walgreens Boots Alliance Inc rose +2.42% after the company said it has accelerated its plans to buy full ownership of CareCentrix, acquiring the remaining 45% stake for US$392M. The broader S&P500 fell -0.65% to 3,588.84, settling within 0.1% of its 30 September 2022 closing low of 3,585.62. Communication Services (down -1.64%) and Information Technology (-1.52%) both fell over >1.5% to lead seven of the eleven primary sectors lower. Real Estate (up +1.02%) and Consumer Staples (+0.93%) were the leading primary sector performers overnight. The Nasdaq dropped -1.10% to 10,426.19, logging its lowest close since 28 July, 2020. Meta Platforms Inc (down -3.92%) and Netflix Inc (-6.82%) were both under notable pressure, with both stocks having dropped more than >60% year to date. Chipmakers also saw fresh selling, with the PHLX Semiconductor Index dropping -2.5%. Advanced Micro Devices Inc lost -0.31%, and Nvidia Corp -0.72% The small capitalisation Russell 2000 inched +0.06% higher.