Daily Market Reports | Jul 11 2023
| World Overnight | |||
| SPI Overnight | 7006.00 | + 43.00 | 0.62% |
| S&P ASX 200 | 7004.00 | – 38.30 | – 0.54% |
| S&P500 | 4409.53 | + 10.58 | 0.24% |
| Nasdaq Comp | 13685.48 | + 24.77 | 0.18% |
| DJIA | 33944.40 | + 209.52 | 0.62% |
| S&P500 VIX | 15.07 | + 0.24 | 1.62% |
| US 10-year yield | 4.01 | – 0.04 | – 1.09% |
| USD Index | 102.26 | – 0.01 | – 0.01% |
| FTSE100 | 7273.79 | + 16.85 | 0.23% |
| DAX30 | 15673.16 | + 69.76 | 0.45% |
Greg Peel and the Overnight Report will return in their usual form tomorrow.
By Rudi Filapek-Vandyck
Smile! Today looks like a positive day for the Australian share market.
July hasn't been kind to the local market thus far and there's a feeling creeping in that the way forward might be less straightforward. Not that 2023 to date has been anywhere near predictable for the Australian market.
One of the key reasons as to why US markets have become a little apprehensive to continue rolling on is that of corporate earnings. Soon, US corporates start releasing Q2 financial updates and the big question remains: is that long-awaited margin pressure finally going to show up?
Central bankers are in no mood to switch to softy-mode and bond yields have yet again reset to account for more interest rate hikes. That zero inflation outcome in China yesterday definitely has caused some headscratching here and there.
Last night, US Fed speakers continued to stick to the script: more rate hikes should be expected.
Meanwhile, Australia's prime minister is touring Europe, and the index managers of the Nasdaq100 are working on an alternative to diminish the outsized influence of Big Tech. In Russia, Putin apparently had a face-to-face with Prigozhin and NATO is preparing for the Ukraine to join the alliance after the war.
One can but wonder whether the Russians need any extra motivation to keep on keeping on. Sweden might soon be a fresh NATO member.
That zero inflation number in China surely is yet another sign the Chinese engine refuses to revv up this year? More reasons to be a little more apprehensive.
US bond yields calmed down last night and retreated a little, but US equities showed no confidence and traded in and out of positive territory for most of the session. Noteworthy: the Dow performed best out of the three major indices.
Clearly, the local market likes to identify most with the index laggard over there with SPI futures indicating a ray of sunshine awaits the Australian share market today. Year to date, the Dow and the ASX200 have performed quite similarly, ex the juicy dividends that are on offer locally.
Unsurprisingly, the Aussie dollar is unable to make any gains; let's call it the China syndrome. Iron ore and thermal coal prices retreated. Base metals were all over the shop, though mostly down. Crude oil enjoyed a positive trading session.
Wednesday sees the release of CPI data in the US, which is yet another reason to dial back on the risk taking, or so it appeared.
Locally, investors' attention will be drawn towards releases on Australian consumer sentiment and the NAB monthly business survey.
Year to date the ASX200 is down -0.49% (ex-dividends) but today's session might reduce that number, if SPI futures can be relied upon.
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 1925.00 | + 0.60 | 0.03% |
| Silver (oz) | 23.10 | + 0.04 | 0.17% |
| Copper (lb) | 3.76 | + 0.01 | 0.17% |
| Aluminium (lb) | 0.95 | + 0.00 | 0.34% |
| Nickel (lb) | 9.37 | + 0.04 | 0.40% |
| Zinc (lb) | 1.06 | – 0.01 | – 0.54% |
| West Texas Crude | 73.22 | – 0.64 | – 0.87% |
| Brent Crude | 77.79 | – 0.68 | – 0.87% |
| Iron Ore (t) | 109.21 | – 1.33 | – 1.20% |
The Australian share market over the past thirty days…
| Index | 10 Jul 2023 | Week To Date | Month To Date (Jul) | Quarter To Date (Jul-Sep) | Year To Date (2023) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 7004.00 | -0.54% | -2.77% | -2.77% | -0.49% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| 3PL | 3P Learning | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| ARB | ARB Corp | Downgrade to Underperform from Neutral | Macquarie |
| EVN | Evolution Mining | Upgrade to Neutral from Sell | UBS |
| FPR | FleetPartners Group | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| IGO | IGO | Downgrade to Neutral from Buy | Citi |
| LTR | Liontown Resources | Downgrade to Sell from Neutral | Citi |
| MFG | Magellan Financial | Downgrade to Underperform from Neutral | Macquarie |
| RKN | Reckon | Downgrade to Underweight from Equal-weight | Morgan Stanley |
| TLC | Lottery Corp | Downgrade to Equal-weight from Overweight | Morgan Stanley |
| TWE | Treasury Wine Estates | Downgrade to Sell from Neutral | Citi |
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.)
(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)
All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com
FNArena is proud about its track record and past achievements: Ten Years On