Daily Market Reports | 8:31 AM
This story features BANK OF QUEENSLAND LIMITED, and other companies. For more info SHARE ANALYSIS: BOQ
SPI futures are suggesting a firm start to Tuesday’s session for the local bourse with the ASX200 aiming to set a new all-time record high.
| World Overnight | |||
| SPI Overnight | 8533.00 | + 67.00 | 0.79% |
| S&P ASX 200 | 8447.90 | + 11.70 | 0.14% |
| S&P500 | 6047.15 | + 14.77 | 0.24% |
| Nasdaq Comp | 19403.95 | + 185.78 | 0.97% |
| DJIA | 44782.00 | – 128.65 | – 0.29% |
| S&P500 VIX | 13.44 | – 0.07 | – 0.52% |
| US 10-year yield | 4.20 | + 0.02 | 0.43% |
| USD Index | 106.33 | + 0.50 | 0.47% |
| FTSE100 | 8312.89 | + 25.59 | 0.31% |
| DAX30 | 19933.62 | + 307.17 | 1.57% |
By Chris Weston, Head of Research, Pepperstone
Good morning.
On the day, there has been plenty for the big picture players to focus on notably, a looming no-confidence vote in France, an improved reading in the US ISM manufacturing report, a renewed bid in the MAG7 plays and an unwelcomed return of geopolitical headlines all making headlines.
The reaction in markets is what interests the most, and on the day, despite US Treasuries finding form, we’ve seen broad USD strength, the S&P500 has pushed to its 55th new all-time high in 2024, while gold and crude are largely unchanged.
Equity hedges have been unwound, which speaks to a market confident of a grind higher into year-end.
Removing downside hedges makes sense given the largest drawdown in the S&P500 in Q4 has been -3.1%, and hedges cost money and subtract from performance if equity is moving higher.
On the day we’ve seen a solid bid in comms services names (Meta & Alphabet), tech and consumer discretionary said another way, the MAG7 index (+1.9%) has broken out to a new all-time high, with all 7 MAG7 constituents rising on the day.
Microsoft and Meta would be my picks that lead us higher from here, with MSFT filling the gap from the 31 Oct, where a break of US$432.23 would suggest a continuation rally into US$440.
Naturally, when tech and the big discretionary plays are firing up, it’s the NAS100 which has outperformed, and we see NAS100 futures 120p from testing the former all-time high at 21,340.
We’ve seen solid moves in European equity too, and notably in the German DAX which is in beast mode and doing everything right technically.
French equity is the exception, with the CAC40 closing unchanged, which is quite a solid result given the brewing political angst.
Certainly, we’ve seen the political risk expressed in the EUR, which is lower on the day against all G10 currencies, and notably vs the JPY and USD. We can add negative revisions to the French and German manufacturing PMIs, which make for sobering viewing, and the upshot has been broad EUR selling.
We did see some modest USD selling late in the session as Fed gov Waller signalled that he is leaning on a December rate cut and that rates are still “some distance from neutral”.
US interest rate swaps now price at 79% chance the Fed cut by -25bp on 18 Dec.
Looking ahead, we see a largely positive open for Asia with the ASX200 set to outperform with the index set to open nicely above 8500 and to new highs.
Event risk in the session ahead comes in on the light side, with Swiss CPI and US Job openings (JOLTS) the key events on the radar.
On the calendar today:
-US Oct JOLTS
-Bank of Queensland ((BOQ)) AGM
-Collins Foods ((CKF)) earnings report
-Incitec Pivot ((IPL)) ex-div 6.30c
-WiseTech Global ((WTC)) investor briefing
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Telstra ((TLS)) acquires Boost Mobile, a prepaid mobile services provider
-Northern Star ((NST)) wants to acquire De Grey Mining ((DEG))
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2660.11 | – 20.89 | – 0.78% |
| Silver (oz) | 30.98 | – 0.13 | – 0.43% |
| Copper (lb) | 4.14 | + 0.00 | 0.04% |
| Aluminium (lb) | 1.17 | + 0.00 | 0.23% |
| Nickel (lb) | 7.09 | – 0.11 | – 1.56% |
| Zinc (lb) | 1.39 | – 0.01 | – 1.03% |
| West Texas Crude | 68.05 | + 0.05 | 0.07% |
| Brent Crude | 71.83 | – 1.11 | – 1.52% |
| Iron Ore (t) | 102.44 | – 2.00 | – 1.91% |
The Australian share market over the past thirty days
| Index | 02 Dec 2024 | Week To Date | Month To Date (Dec) | Quarter To Date (Oct-Dec) | Year To Date (2024) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8447.90 | 0.14% | 0.14% | 2.15% | 11.29% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| ADA | Adacel Technologies | Downgrade to Hold from Buy | Bell Potter |
| AMC | Amcor | Upgrade to Outperform from Neutral | Macquarie |
| AVJ | AV Jennings | Downgrade to Hold from Buy | Bell Potter |
| CCX | City Chic Collective | Downgrade to Sell from Hold | Bell Potter |
| GQG | GQG Partners | Downgrade to Neutral from Buy | UBS |
| HUB | Hub24 | Downgrade to Hold from Accumulate | Ord Minnett |
| HVN | Harvey Norman | Downgrade to Neutral from Buy | UBS |
| QBE | QBE Insurance | Downgrade to Hold from Buy | Bell Potter |
| SGR | Star Entertainment | Downgrade to Underperform from Neutral | Macquarie |
| SHV | Select Harvests | Upgrade to Buy from Accumulate | Ord Minnett |
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: BOQ - BANK OF QUEENSLAND LIMITED
For more info SHARE ANALYSIS: CKF - COLLINS FOODS LIMITED
For more info SHARE ANALYSIS: DEG - DE GREY MINING LIMITED
For more info SHARE ANALYSIS: IPL - INCITEC PIVOT LIMITED
For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED
For more info SHARE ANALYSIS: TLS - TELSTRA GROUP LIMITED
For more info SHARE ANALYSIS: WTC - WISETECH GLOBAL LIMITED