Daily Market Reports | May 30 2024
This story features BHP GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: BHP
| World Overnight | |||
| SPI Overnight | 7640.00 | – 52.00 | – 0.68% |
| S&P ASX 200 | 7665.60 | – 101.10 | – 1.30% |
| S&P500 | 5306.04 | + 1.32 | 0.02% |
| Nasdaq Comp | 17019.88 | + 99.09 | 0.59% |
| DJIA | 38852.86 | – 216.73 | – 0.55% |
| S&P500 VIX | 14.05 | + 1.69 | 13.67% |
| US 10-year yield | 4.61 | + 0.07 | 1.54% |
| USD Index | 105.11 | + 0.49 | 0.47% |
| FTSE100 | 8224.89 | – 29.29 | – 0.35% |
| DAX30 | 18564.15 | – 113.72 | – 0.61% |
No comments from Chris Weston today.
-Global bond yields extend their move up
-Rise in EU core yields also supported by higher-than-expected German CPI
-Higher yields dampen risk appetite. Global equities retreat
-USD stronger on higher US yields and safe-haven appeal
-ASX poised for a yet another weak opening
Higher-than-forecast inflation readings in Australia and Germany, plus sluggish demand for fresh US Treasuries, pushed bond yields higher across the globe on Wednesday, and equities have responded by heading south.
SPI futures are yet again signalling another weak opening for the local bourse today.
The Fed Beige book was released overnight and confirmed the economy and labour market are slowing with eight districts reporting slight growth — compared to five in April — and just two districts reporting modest or moderate growth, down from five.
But price action was led by bond yields, and they moved up (equities weaker in response).
Economists remain of the view the ECB stands ready to deliver a rate cut next week, which will be of global interest if/when they do/don’t.
European equities have now sunk to three-week lows. The Australian market has closed weaker in seven out of the past ten sessions.
Here's some technical background for the index: https://fnarena.com/index.php/2024/05/29/technical-views-on-nasdaq-asx200-wti-crude/
Ex-dividends the local ASX200 is still in the positive year-to-date, but that little surplus might be challenged today.
Locally, the big news is the Big Australian ((BHP)) won’t be pursuing the copper mines operated by Anglo American, at least not for the time being.
Also, Ramelius Resources ((RMS)) has reportedly approached Westgold Resources ((WGX)) for a potential $3b merger.
Reformed Lendlease ((LLC)) is already selling its first asset in the USA.
The Queensland Investment Corporation has launched a $129m sell down of Dalrymple Bay Infrastructure ((DBI)), underwritten by MacCap at a $2.58 per share.
Generation Development Group ((GDG)) plans to acquire the remaining shares of Lonsec
Yesterday
In yesterday’s session, shares in Lendlease slid -2.4% to $6.09 as investors digested the corporate restructuring including a $4.5bn plan to divest offshore operations and focus on Australia. FNArena has a story ready on Lendlease's plans, to be published shortly.
Shares in respirator company Fisher & Paykel Healthcare ((FPH)) gained 3.7% to $26.39 following a largely in-line FY24 performance, against the trend of the moment.
Base metal prices had a mixed session, with aluminium refusing to follow the pack (as is iron ore). Oil is struggling and gold was pushed back by US bond yields and a stronger USD.
Looking Ahead in Australia:
The calendar shows building approvals and business investment are scheduled for release. RBA Assistant Governor (Economic) Sarah Hunter speaks.
Life360 ((360)) and Sigma Healthcare ((SIG)) hold AGMS and Champion Iron ((CIA)) should release quarterly financials.
TechnologyOne ((TNE)) shares go ex-dividend.
Looking Ahead in the US:
Scheduled data include economic growth (GDP), jobless claims, pending home sales, inventories, and goods trade balance.
Earnings reports scheduled include Best Buy, Costco, Dollar General, Foot Locker, Hormel Foods, Kohl's, Marvell Technology, and Ulta Beauty.
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2336.40 | – 24.50 | – 1.04% |
| Silver (oz) | 31.88 | – 0.14 | – 0.44% |
| Copper (lb) | 4.72 | – 0.03 | – 0.58% |
| Aluminium (lb) | 1.26 | + 0.03 | 2.12% |
| Nickel (lb) | 9.23 | – 0.02 | – 0.16% |
| Zinc (lb) | 1.40 | – 0.00 | – 0.26% |
| West Texas Crude | 79.28 | – 1.00 | – 1.25% |
| Brent Crude | 83.38 | – 0.93 | – 1.10% |
| Iron Ore (t) | 117.74 | + 0.06 | 0.05% |
The Australian share market over the past thirty days…
| Index | 29 May 2024 | Week To Date | Month To Date (May) | Quarter To Date (Apr-Jun) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 7665.60 | -0.80% | 0.02% | -2.93% | 0.99% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| A2M | a2 Milk Co | Buy | Citi |
| CMW | Cromwell Property | Accumulate | Ord Minnett |
| DTL | Data#3 | Upgrade to Overweight from Equal-weight | Morgan Stanley |
| HMC | HMC Capital | Upgrade to Outperform from Neutral | Macquarie |
| KED | Keypath Education International | Downgrade to Neutral from Outperform | Macquarie |
| PDN | Paladin Energy | Downgrade to Hold from Buy | Bell Potter |
| PWR | Peter Warren Automotive | Downgrade to Sell from Neutral | Citi |
| Downgrade to Hold from Buy | Ord Minnett | ||
| SMP | SmartPay | 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.
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CHARTS
For more info SHARE ANALYSIS: 360 - LIFE360 INC
For more info SHARE ANALYSIS: BHP - BHP GROUP LIMITED
For more info SHARE ANALYSIS: CIA - CHAMPION IRON LIMITED
For more info SHARE ANALYSIS: DBI - DALRYMPLE BAY INFRASTRUCTURE LIMITED
For more info SHARE ANALYSIS: FPH - FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED
For more info SHARE ANALYSIS: GDG - GENERATION DEVELOPMENT GROUP LIMITED
For more info SHARE ANALYSIS: LLC - LENDLEASE GROUP
For more info SHARE ANALYSIS: RMS - RAMELIUS RESOURCES LIMITED
For more info SHARE ANALYSIS: SIG - SIGMA HEALTHCARE LIMITED
For more info SHARE ANALYSIS: TNE - TECHNOLOGY ONE LIMITED
For more info SHARE ANALYSIS: WGX - WESTGOLD RESOURCES LIMITED