Daily Market Reports | Apr 15 2024
Calm Before the Storm
Having staged a solid comeback on Thursday following a CPI-related fall on Wall Street, on Friday the ASX200 ignored a PPI-driven rally on Wall Street and fell -25 points. The futures had said -29. That rally was all about US Mega Caps.
For the week, the ASX200 closed up 15 points.
That will change today given developments over the weekend, which were portended on Friday night, sending Wall Street tumbling. Our futures were down -50 points on Saturday morning.
In contrast to playing defensive all week, staples was the worst sector performer on Friday (-0.9%). Utilities has been playing a more definitive defensive role, and that sector proved the best performer (+1.2%).
Technology rose 0.5% and healthcare just squeaked into the positive, leaving every other sector down on the day.
Discretionary fell -0.8%. Domino’s Pizza ((DMP)) hosted an investor day and its shares fell -7.5% to top the index losers’ table.
Star Entertainment ((SGR)) revealed high rollers had rolled on elsewhere, and its shares fell -7.2%.
There was no saving the day from the resource sectors, with energy down -0.5% on lower oil prices and materials down -0.4% on a mixed bag of metal price movements.
Bond yields ticked up only a tad but the banks fell -0.2% and real estate -0.7%.
In another case of there’s not much point in dwelling further, today geopolitics will take centre stage, ahead of tomorrow’s Chinese GDP release.
When Drones Attack
“Sooner rather than later,” said Biden on Friday night, when asked when he thought Iran might retaliate against Israel. And so it came to pass on Saturday night, more extensively than was expected.
That warning was enough for Wall Street to put up the defences, and sell.
Before the drones and missiles launched from Iran had even reached Israel, Tehran declared the retaliation had “concluded”. As to whether that ends proceedings for now is up to Israel, which had vowed to respond to any attack, which would suggest another all-out war ahead.
No doubt Biden is telling Netanyahu to sit on his hands.
What transpires will nevertheless inform global markets.
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