Daily Market Reports | Sep 24 2024
This story features ATLAS ARTERIA, and other companies. For more info SHARE ANALYSIS: ALX
| World Overnight | |||
| SPI Overnight | 8196.00 | – 9.00 | – 0.11% |
| S&P ASX 200 | 8152.90 | – 56.60 | – 0.69% |
| S&P500 | 5718.57 | + 16.02 | 0.28% |
| Nasdaq Comp | 17974.27 | + 25.95 | 0.14% |
| DJIA | 42124.65 | + 61.29 | 0.15% |
| S&P500 VIX | 15.89 | – 0.26 | – 1.61% |
| US 10-year yield | 3.74 | + 0.01 | 0.30% |
| USD Index | 100.92 | + 0.19 | 0.19% |
| FTSE100 | 8259.71 | + 29.72 | 0.36% |
| DAX30 | 18846.79 | + 126.78 | 0.68% |
Good morning.
It looks like the Australian share market will take a slow start on Tuesday morning with investors waiting for the outcome of today’s RBA meeting.
Virtually everybody is convinced there will be no change to the cash rate, so that leaves additional communication to give direction to the local bond market, and thus by extension FX crosses and equities.
The Reserve Bank cash rate decision becomes public at 2.30pm AEST and governor Michele Bullock will hold a press conference afterwards.
Overnight, the three major indices in the US advanced as the Dow Jones rose 0.2%, the S&P500 added 0.3% and the Nasdaq advanced a virtually unnoticeable 0.1%.
The overnight gain did help the S&P500 reset its closing record high for a third consecutive session. Eight of the 11 S&P500 sectors closed higher, with energy stocks leading with a 1.3% rise.
The Euro Stoxx 50 lifted 0.3% and the FTSE 100 gained 0.4%. The yield on the US 10y Treasury note lifted a touch to 3.75%.
In economic news, preliminary PMI data for September has the US manufacturing index at 47.0 and services index at 55.4. The services PMI was slightly better than expected.
The data were not as positive over in Europe. The preliminary September PMI data for the euro area saw the manufacturing index fall to 44.8, while services PMI eased to 50.5. Economists suggest the fall in services PMI reflects the post-Olympics slowdown. The manufacturing side of the economy remains weak. In both France and Germany, manufacturing and services were weaker than expected.
Preliminary PMI data for the UK showed the manufacturing index eased to 51.5, while the services PMI softened to 52.8 in September. The PMI data suggest growth is holding up, even as the pace of growth slows. The Bank of England paused in September, citing the need for further disinflation.
In commodities, gold reset its record high, rising as much as 0.5% to $US2634.90/oz. The precious metal has risen more than 27% so far this year. Separately, copper advanced on renewed expectations that China is edging closer to a more determined effort to bolster its economy.
Iron ore has dropped below $US90 a tonne, and oil eased.
Fed speakers backed the FOMC’s decision to cut rates by -50bp last week with Atlanta Fed’s Bostic (voter) saying the larger-than-usual rate cut was intended to bring interest rates closer to neutral.
Bostic also cautioned -50bp cuts cannot be committed to, as there are lingering risks of inflation accelerating were the Fed to ease rapidly. Chicago Fed’s Goolsbee (voter) stated rates need to ease significantly in coming months as the Fed seeks to prevent further labour market weakness.
On the calendar today:
-RBA cash rate
-Japan PMI
-Atlas Arteria ((ALX)) ex-div 20c
-Southern Cross Electrical Engineering ((SXE)) ex-div 5c (100%)
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Rightmove said it will consider a GBP6.1bn sweetened bid from REA Group ((REA)), the third proposal in less than three weeks from the property portal. The improved offer values Rightmove at 770 pence a share, or 2.8% higher than the previous bid
-The ACCC is suing Coles ((COL)) and Woolworths ((WOW)) over misleading discounts, calling it as significant as the Qantas ghost flights case
-Telix Pharmaceuticals ((TLX)) is acquiring US radiopharmacy network RLS, enhancing its North American manufacturing and distribution platform
-South32 ((S32)) has been awarded a US Department of Energy grant to advance its Hermosa project
-Nickel Industries ((NIC)) has acquired a 51% stake in Indonesia’s Siduarsi nickel-cobalt project, one of four active nickel contracts of work in the country
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2653.20 | + 6.10 | 0.23% |
| Silver (oz) | 31.02 | – 0.48 | – 1.52% |
| Copper (lb) | 4.35 | + 0.01 | 0.28% |
| Aluminium (lb) | 1.12 | 0.00 | 0.00% |
| Nickel (lb) | 7.45 | + 0.03 | 0.45% |
| Zinc (lb) | 1.30 | + 0.01 | 0.56% |
| West Texas Crude | 70.73 | + 0.40 | 0.57% |
| Brent Crude | 73.49 | – 0.20 | – 0.27% |
| Iron Ore (t) | 91.60 | – 0.33 | – 0.36% |
The Australian share market over the past thirty days
| Index | 23 Sep 2024 | Week To Date | Month To Date (Sep) | Quarter To Date (Jul-Sep) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8152.90 | -0.69% | 0.75% | 4.96% | 7.41% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| ALX | Atlas Arteria | Upgrade to Outperform from Neutral | Macquarie |
| BHP | BHP Group | Upgrade to Overweight from Equal-weight | Morgan Stanley |
| CPU | Computershare | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| EVN | Evolution Mining | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| FMG | Fortescue | Upgrade to Equal-weight from Underweight | Morgan Stanley |
| NST | Northern Star Resources | Downgrade to Underweight from Equal-weight | Morgan Stanley |
| PLS | Pilbara Minerals | Upgrade to Equal-weight from Underweight | Morgan Stanley |
| RRL | Regis Resources | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| SGM | Sims | Downgrade to Neutral from Buy | UBS |
| SHV | Select Harvests | Downgrade to Hold from Buy | Ord Minnett |
For more detail go to FNArena’s Australian Broker Call Report, which is updated each morning, Mon-Fri.
All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website. Click here. (Subscribers can access prices on the website.)
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CHARTS
For more info SHARE ANALYSIS: ALX - ATLAS ARTERIA
For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED
For more info SHARE ANALYSIS: NIC - NICKEL INDUSTRIES LIMITED
For more info SHARE ANALYSIS: REA - REA GROUP LIMITED
For more info SHARE ANALYSIS: S32 - SOUTH32 LIMITED
For more info SHARE ANALYSIS: SXE - SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED
For more info SHARE ANALYSIS: TLX - TELIX PHARMACEUTICALS LIMITED
For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED