Daily Market Reports | Sep 30 2024
This story features DEEP YELLOW LIMITED, and other companies. For more info SHARE ANALYSIS: DYL
| World Overnight | |||
| SPI Overnight | 8277.00 | + 22.00 | 0.27% |
| S&P ASX 200 | 8212.20 | + 8.50 | 0.10% |
| S&P500 | 5738.17 | – 7.20 | – 0.13% |
| Nasdaq Comp | 18119.59 | – 70.70 | – 0.39% |
| DJIA | 42313.00 | + 137.89 | 0.33% |
| S&P500 VIX | 16.96 | + 1.59 | 10.34% |
| US 10-year yield | 3.75 | – 0.04 | – 1.11% |
| USD Index | 100.38 | – 0.19 | – 0.19% |
| FTSE100 | 8320.76 | + 35.85 | 0.43% |
| DAX30 | 19473.63 | + 235.27 | 1.22% |
Good morning.
Markets ended the week with a relatively upbeat tone, buoyed by benign inflation data.
Equity markets were in the green in Europe (Euro Stoxx 50 up 0.7%, FTSE 100 up 0.4%), but moves in US indices were more mixed, with the S&P500 down -0.1% but the Dow up 0.3%.
In Australia, the promise of more stimulus from China has triggered a noticeable rotation in market momentum, favouring those out-of-fashion cyclicals and market laggards while funds have been flowing out of the previous winners.
SPI futures are indicating a positive start for the local bourse on Monday morning.
The yield on the US 10-year Treasury fell -4.2bp to 3.75%, and yields were lower across Europe.
WTI oil was up 1.1% to US$68.2/bbl. Gold fell -0.3% to US$2,658.2/oz. Base metals recorded their biggest weekly gain since early May.
Monthly PCE data showed both headline and core inflation rose 0.1% m/m in August, the latter being softer than expected.
On an annual basis, headline PCE inflation edged lower to 2.2% y/y from 2.3% and core PCE inflation rose slightly to 2.7% y/y from 2.6%.
Goods PCE inflation fell to -0.9% y/y, with prices for durable and non-durable goods falling on an annual basis. Services prices were steady at 3.7% y/y.
As per the economists at ANZ Bank, the debate about the speed of Fed easing will be largely driven by labour market and activity indicators.
This week brings the JOLTS, ADP employment and nonfarm payroll (NFP) data. The consensus expectation is the pace of hiring was stable in September (146k NFP expected vs 142k previously), with the unemployment rate expected to be flat at 4.2%.
Data in line with these estimates would support ANZ Bank’s in-house view the labour market is rebalancing but not deteriorating.
ANZ economists think the Fed will ease in conventional increments of -25bp. Chair Powell is scheduled to speak later today, and seven other Fed policymakers are due to speak this week.
When it comes to the RBA, ANZ Bank does not expect it to act on its tightening bias, which is judged to not be as strong as it was in August.
The monthly inflation rate fell to 2.7% y/y in August, the first time it has been in the RBA’s 2-3% target band since October 2021. The first RBA cut is expected to be in February 2025.
On the calendar today:
-New Zealand Sept A&NZ Business confidence
-August Aug private sector credit
-Japan Aug retail sales
-China PMI
-UK 2Q GDP
-Deep Yellow ((DYL)) earnings report
-Liontown Resources ((LTR)) earnings report
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Affinity Equity Partners has reportedly dropped out of the Waste Services Group bid leaving EQT Holdings ((EQT)), The Carlyle Group, Pacific Equity Partners, and BGH Capital in the running with bids due this week
-Cosmetique plans a $17.5m ASX listing to expand its 17 clinics and capitalise on Australia’s $4bn injectables market
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2681.50 | – 13.60 | – 0.50% |
| Silver (oz) | 31.91 | – 0.39 | – 1.21% |
| Copper (lb) | 4.60 | + 0.13 | 2.92% |
| Aluminium (lb) | 1.19 | + 0.01 | 0.61% |
| Nickel (lb) | 7.67 | + 0.11 | 1.40% |
| Zinc (lb) | 1.39 | – 0.01 | – 0.62% |
| West Texas Crude | 68.64 | + 1.20 | 1.78% |
| Brent Crude | 71.54 | + 0.66 | 0.93% |
| Iron Ore (t) | 92.98 | + 0.44 | 0.48% |
The Australian share market over the past thirty days
| Index | 27 Sep 2024 | Week To Date | Month To Date (Sep) | Quarter To Date (Jul-Sep) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8212.20 | 0.03% | 1.49% | 5.73% | 8.19% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| BKW | Brickworks | Upgrade to Accumulate from Hold | Ord Minnett |
| Downgrade to Hold from Buy | Bell Potter | ||
| LNW | Light & Wonder | Upgrade to Buy from Neutral | UBS |
| PBH | PointsBet Holdings | Downgrade to Hold from Buy | Bell Potter |
| PTM | Platinum Asset Management | Downgrade to Hold from Buy | Bell Potter |
| WHC | Whitehaven Coal | Upgrade to Buy 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.)
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CHARTS
For more info SHARE ANALYSIS: DYL - DEEP YELLOW LIMITED
For more info SHARE ANALYSIS: EQT - EQT HOLDINGS LIMITED
For more info SHARE ANALYSIS: LTR - LIONTOWN RESOURCES LIMITED