Daily Market Reports | 9:03 AM
This story features LYNAS RARE EARTHS LIMITED, and other companies. For more info SHARE ANALYSIS: LYC
The BIG corporate news is that miners Rio Tinto and Glencore are discussing forming the world’s largest mining conglomerate, relegating BHP Group to become number two.
Wall Street closed lower overnight with technology stocks in particular struggling to keep positive momentum going.
SPI futures are suggesting the local market might have a cautiously positive start to the final session for the week.
| World Overnight | |||
| SPI Overnight | 8308.00 | + 10.00 | 0.12% |
| S&P ASX 200 | 8327.00 | + 113.70 | 1.38% |
| S&P500 | 5937.34 | – 12.57 | – 0.21% |
| Nasdaq Comp | 19338.29 | – 172.95 | – 0.89% |
| DJIA | 43153.13 | – 68.42 | – 0.16% |
| S&P500 VIX | 16.60 | + 0.48 | 2.98% |
| US 10-year yield | 4.61 | – 0.05 | – 1.01% |
| USD Index | 108.82 | – 0.09 | – 0.08% |
| FTSE100 | 8391.90 | + 90.77 | 1.09% |
| DAX30 | 20655.39 | + 80.71 | 0.39% |
Good morning.
Apple shares came under pressure last night on reports it is losing smartphone market share to competitors vivo and Huawei in China.
Tesla shares joined in as more price discounts were announced for Cybertrucks, as did all seven members of the luminous Magnificent Seven (Mag7).
In economic data, US December retail sales rose 0.4% m/m vs an expectation of a 0.6% m/m rise.
While the rise in headline sales was lower than consensus expectations, triggering lower yields on US Treasuries, control group sales (used to impute real private consumption) rose at a faster-than-expected pace, up 0.7% m/m vs expectations of 0.4%.
ANZ Bank economists comment the data affirm demand remained strong during the holiday season and suggest strong growth in Q4.
In contrast, GDP growth in the UK fell to 0.0% in November on a 3m/3m basis.
In Europe, the Euro Stoxx 50 and the FTSE 100 closed up 1.5% and 1.1%, respectively.
The yield on the US 10yr bond fell -6.5bp to 4.59%. Oil prices retraced, with WTI down -1.8% to US$79/bbl. Gold rose 0.7% to US$2,715.1/oz.
Crude oil retreated amid reports Trump’s advisors were crafting a strategy that could see sanctions on Russia’s oil industry lifted.
The Biden administration announced new sanctions last week which could impact exports of nearly 1mb/d of oil from Russia but Trump has promised he will work to end the Russia-Ukraine war quickly.
Aluminium led the base metal sector higher amid signs of improving demand. China’s holding of the lightweight metal fell to 440kt, the lowest in almost a year, according to Shanghai Metals Market data.
Bloomberg reported earlier this week the metal could be included in new measures to punish Russia for its invasion of Ukraine.
Gold climbed to a five-month high as lower inflation in the US raised the prospect of further Fed rate cuts.
ANZ Bank observes support has also been found in the gold-backed ETF market, with holdings increasing seven out of the last nine sessions. Total gold held by ETFs is now up 0.5% this year to 83.2moz.
On the calendar today:
-New Zealand Dec Manufacturing PMI
-Eurozone Dec CPI
-UK Dec retail sales
-US Dec Housing starts, Building permits, Industrial prod’n
-Lynas Rare Earths ((LYC)) 2Q sales & revenue
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Bloomberg reports Rio Tinto ((RIO)) and Glencore are discussing a merger that could create the largest mining company
-Pro Medicus ((PME)) announced yet another $33m deal with the University of Kentucky to expand its imaging platform in North America
-BHP Group ((BHP)) and Lundin acquired Filo Corp, forming a joint venture for copper projects in Argentina and Chile
-Lynas Rare Earths ((LYC)) is hosting an investor briefing today
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2746.79 | + 26.68 | 0.98% |
| Silver (oz) | 31.61 | + 0.01 | 0.02% |
| Copper (lb) | 4.44 | + 0.04 | 0.86% |
| Aluminium (lb) | 1.19 | + 0.01 | 1.19% |
| Nickel (lb) | 7.03 | + 0.02 | 0.22% |
| Zinc (lb) | 1.29 | + 0.00 | 0.21% |
| West Texas Crude | 77.86 | – 1.37 | – 1.73% |
| Brent Crude | 81.28 | – 1.22 | – 1.48% |
| Iron Ore (t) | 100.49 | + 0.29 | 0.29% |
The Australian share market over the past thirty days
| Index | 16 Jan 2025 | Week To Date | Month To Date (Jan) | Quarter To Date (Jan-Mar) | Year To Date (2025) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8327.00 | 0.40% | 2.06% | 2.06% | 2.06% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| BBN | Baby Bunting | Upgrade to Buy from Neutral | Citi |
| BPT | Beach Energy | Downgrade to Sell from Neutral | Citi |
| CAR | CAR Group | Downgrade to Hold from Accumulate | Ord Minnett |
| GYG | Guzman y Gomez | Upgrade to Neutral from Sell | UBS |
| JIN | Jumbo Interactive | Upgrade to Hold from Lighten | Ord Minnett |
| MND | Monadelphous Group | Downgrade to Neutral from Outperform | Macquarie |
| NWL | Netwealth Group | Downgrade to Sell from Neutral | Citi |
| OML | oOh!media | Upgrade to Outperform from Neutral | Macquarie |
| RMD | ResMed | Upgrade to Buy from Hold | Ord Minnett |
| SCG | Scentre Group | 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: BHP - BHP GROUP LIMITED
For more info SHARE ANALYSIS: LYC - LYNAS RARE EARTHS LIMITED
For more info SHARE ANALYSIS: PME - PRO MEDICUS LIMITED
For more info SHARE ANALYSIS: RIO - RIO TINTO LIMITED