Daily Market Reports | Oct 02 2024
This story features BHP GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: BHP
| World Overnight | |||
| SPI Overnight | 8254.00 | + 2.00 | 0.02% |
| S&P ASX 200 | 8208.90 | – 60.90 | – 0.74% |
| S&P500 | 5708.75 | – 53.73 | – 0.93% |
| Nasdaq Comp | 17910.36 | – 278.81 | – 1.53% |
| DJIA | 42156.97 | – 173.18 | – 0.41% |
| S&P500 VIX | 19.26 | + 2.53 | 15.12% |
| US 10-year yield | 3.74 | – 0.06 | – 1.55% |
| USD Index | 101.21 | + 0.45 | 0.45% |
| FTSE100 | 8276.65 | + 39.70 | 0.48% |
| DAX30 | 19213.14 | – 111.79 | – 0.58% |
Good morning.
An escalation of tensions in the Middle East has led to a sell-off in risk assets overnight as Iran retaliated for Israel’s ground offensive into Lebanon, sending hordes of projectiles into Israel.
If early reports are accurate, the damage inflicted on Israel from the circa 180 ballistic projectiles remains relatively small.
Financial markets responded as per textbook guidance favouring safe havens including US treasuries, the USD and gold, with funds flowing out of riskier assets.
Energy prices, both oil and gas, responded positively while base metals continue to take a positive lead from China’s stimulus promises. BHP’s ((BHP)) US listed shares closed higher while those of Rio Tinto ((RIO)) are flat.
It was also a day of weak economic indicators, with the US ISM manufacturing index unchanged at 47.2 in September.
The September reading is signalling the US manufacturing sector remained in contraction for a sixth straight month and in 22 months out of the last 23 months.
Historically, such statistics would always point towards economic recession.
New orders rose from 44.6 to 46.1, while employment fell from 46.0 to 43.9 The prices paid index declined -5.7pts to 48.3, indicating raw materials prices decreased in September after eight straight months.
Separately, the JP Morgan Global Manufacturing PMI (Sep) fell -0.8 points MoM to 48.8; the equal lowest print in the series since July 2023 (48.6).
US JOLTS job openings rose 329k to 8.04m in August.
Faster than expected disinflation in the euro area keeps an ECB October rate cut on the table, also marking the first time headline inflation has fallen below the 2.0% target since April 2021.
The weakness in headline inflation was primarily driven by a -6.0% y/y fall in energy costs.
The US vice presidential debate is scheduled for 11am AEST.
On the calendar today:
-China Public holiday
-Eurozone Aug Unemployment rate
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-The RBA has blacklisted Westpac ((WBC)) for 12 months over suspected briefing leak involving Michele Bullock
-The Labor government eyes gambling ad ban on streaming services, granting TV networks a key concession in upcoming reform package
-Growthpoint Properties Australia ((GOZ)) is selling its 15.1% stake in Dexus Industria REIT for about $131.7m, offering shares at a -3.8% discount
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2684.80 | + 29.90 | 1.13% |
| Silver (oz) | 31.71 | + 0.30 | 0.96% |
| Copper (lb) | 4.58 | + 0.03 | 0.64% |
| Aluminium (lb) | 1.19 | + 0.01 | 0.95% |
| Nickel (lb) | 7.96 | + 0.08 | 0.95% |
| Zinc (lb) | 1.41 | + 0.03 | 1.95% |
| West Texas Crude | 70.76 | + 2.42 | 3.54% |
| Brent Crude | 74.61 | + 2.62 | 3.64% |
| Iron Ore (t) | 108.74 | + 1.28 | 1.19% |
The Australian share market over the past thirty days
| Index | 01 Oct 2024 | Week To Date | Month To Date (Oct) | Quarter To Date (Oct-Dec) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8208.90 | -0.04% | -0.74% | -0.74% | 8.14% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| BKW | Brickworks | Upgrade to Accumulate from Hold | Ord Minnett |
| Downgrade to Hold from Buy | Bell Potter | ||
| FBU | Fletcher Building | Upgrade to Buy from Sell | Citi |
| PBH | PointsBet Holdings | Downgrade to Hold from Buy | Bell Potter |
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: BHP - BHP GROUP LIMITED
For more info SHARE ANALYSIS: GOZ - GROWTHPOINT PROPERTIES AUSTRALIA
For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED
For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION