Daily Market Reports | 9:08 AM
This story features INSURANCE AUSTRALIA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: IAG
US CPI inflation came in hotter than expected. No surprise, US equities dipped and US Treasury yields moved higher.
Chair Powell said the Fed is reserving judgement until it knows Trump’s policies. The US president is preparing to negotiate a peace agreement with Putin over the Ukraine (oil prices down).
In a widely anticipated move, Chemist Warehouse is joining the ASX this morning having finalised its “merger” with wholesaler Sigma Healthcare.
Multiple changes to the MSCI Global Standard Index will impact on share prices too (see further below).
Meanwhile, the local February reporting season is starting to heat up. Insurance Australia Group ((IAG)) surprised with its H1 numbers this morning, but enthusiasm might be tempered by a more modest outlook.
Cyclone Zelia is moving toward Western Australia’s Pilbara coast.
SPI futures are suggesting a rather cautious opening for the local bourse on Thursday.
| World Overnight | |||
| SPI Overnight | 8488.00 | + 6.00 | 0.07% |
| S&P ASX 200 | 8535.30 | + 51.30 | 0.60% |
| S&P500 | 6051.97 | – 16.53 | – 0.27% |
| Nasdaq Comp | 19649.95 | + 6.10 | 0.03% |
| DJIA | 44368.56 | – 225.09 | – 0.50% |
| S&P500 VIX | 15.89 | – 0.13 | – 0.81% |
| US 10-year yield | 4.64 | + 0.10 | 2.20% |
| USD Index | 107.81 | + 0.02 | 0.02% |
| FTSE100 | 8807.44 | + 30.05 | 0.34% |
| DAX30 | 22148.03 | + 110.20 | 0.50% |
Good morning.
Overnight price action was centred around a hotter-than-expected CPI print in the US.
US equity markets weakened, as expected, while European bourses rallied mildly on talk of a reciprocal tariff policy in the US.
The US bond market reacted sharply to the inflation data, with yields spiking across the curve.
The yield on the 10-year bond was up 10bp to 4.64%. Oil fell after Trump said he agreed with Putin to start talks on ending the war in Ukraine. WTI was down -2.5% to USD71.5/bbl. Gold lifted 0.7% to USD2,902.5/oz.
January US CPI inflation rose 0.5% m/m (market: 0.3%), with core inflation up 0.4% m/m, its highest monthly increase since February 2023.
The rise in core inflation was driven by a 0.76% m/m increase in supercore inflation.
Iron ore prices rose sharply after a tropical cyclone disrupted Australia’s biggest bulk commodity port.
Cyclone Zelia is expected to strengthen as it moves toward Western Australia’s Pilbara coast.
ANB Bank economists report the cyclone is forecast to hit near Port Hedland, used by BHP Group ((BHP)) and Fortescue ((FMG)). Port authorities said they will close operations today.
Copper managed to push higher as amid concerns that the metal will get caught up in the tariff war.
On the calendar today:
-Japan Jan PPI
-UK 4Q GDP
-US Jan PPI
-ASX ((ASX)) 1H25 earnings report
-Civmec ((CVL)) earnings report
-Domain Holdings Australia ((DHG)) earnings report
-Downer EDI ((DOW)) earnings report
-GrainCorp ((GNC)) earnings report
-HealthCo Healthcare & Wellness REIT ((HCW)) earnings report
-HomeCo Daily Needs REIT ((HDN)) earnings report
-Insurance Australia Group ((IAG)) earnings report
-Korvest ((KOV)) ex-div 25.00c (100%)
-Northern Star Resources ((NST)) earnings report
-Orora ((ORA)) earnings report
(and more)
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
Corporate news in Australia:
-Endeavour Group ((EDV)), Mineral Resources ((MIN)), Mirvac Group ((MGR)), Orica ((ORI)), Ramsay Health Care ((RHC)) and Seek ((SEK)) to be removed from MSCI Global Standard Index per February 28
-NZ’s Mercury NZ will also be removed from that index while Contact Energy ((CEN)) will be added
-Telstra ((TLS)) is exploring a potential sale of its $200m data centre business
-Reverse take-over of Sigma Healthcare ((SIG)) by Chemist Warehouse has completed
– South32 ((S32)) has federal approval to extend Worsley Alumina mine
– Iress ((IRE)) sparks stockbroker revolt over surprise price hikes for ASX upgrade
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 2924.90 | – 2.01 | – 0.07% |
| Silver (oz) | 32.69 | + 0.44 | 1.36% |
| Copper (lb) | 4.70 | + 0.11 | 2.30% |
| Aluminium (lb) | 1.18 | – 0.00 | – 0.37% |
| Nickel (lb) | 6.82 | – 0.11 | – 1.55% |
| Zinc (lb) | 1.29 | + 0.02 | 1.45% |
| West Texas Crude | 71.31 | – 1.93 | – 2.64% |
| Brent Crude | 75.07 | – 1.93 | – 2.51% |
| Iron Ore (t) | 107.26 | + 0.94 | 0.88% |
The Australian share market over the past thirty days
| Index | 12 Feb 2025 | Week To Date | Month To Date (Feb) | Quarter To Date (Jan-Mar) | Year To Date (2025) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8535.30 | 0.28% | 0.04% | 4.61% | 4.61% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| CAR | CAR Group | Upgrade to Add from Hold | Morgans |
| DMP | Domino’s Pizza Enterprises | Upgrade to Neutral from Underperform | Macquarie |
| INA | Ingenia Communities | Downgrade to Neutral from Buy | UBS |
| JBH | JB Hi-Fi | Upgrade to Hold from Lighten | Ord Minnett |
| Downgrade to Hold from Buy | Bell Potter | ||
| LTR | Liontown Resources | Upgrade to Neutral from Sell | UBS |
| NCK | Nick Scali | Downgrade to Sell from Accumulate | Ord Minnett |
| NWS | News Corp | Upgrade to Accumulate from Hold | Ord Minnett |
| SCG | Scentre Group | Upgrade to Neutral from Sell | UBS |
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.)
(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author’s and not by association FNArena’s – see disclaimer on the website)
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CHARTS
For more info SHARE ANALYSIS: ASX - ASX LIMITED
For more info SHARE ANALYSIS: BHP - BHP GROUP LIMITED
For more info SHARE ANALYSIS: CEN - CONTACT ENERGY LIMITED
For more info SHARE ANALYSIS: CVL - CIVMEC LIMITED
For more info SHARE ANALYSIS: DHG - DOMAIN HOLDINGS AUSTRALIA LIMITED
For more info SHARE ANALYSIS: DOW - DOWNER EDI LIMITED
For more info SHARE ANALYSIS: EDV - ENDEAVOUR GROUP LIMITED
For more info SHARE ANALYSIS: FMG - FORTESCUE LIMITED
For more info SHARE ANALYSIS: GNC - GRAINCORP LIMITED
For more info SHARE ANALYSIS: HCW - HEALTHCO HEALTHCARE & WELLNESS REIT
For more info SHARE ANALYSIS: HDN - HOMECO DAILY NEEDS REIT
For more info SHARE ANALYSIS: IAG - INSURANCE AUSTRALIA GROUP LIMITED
For more info SHARE ANALYSIS: IRE - IRESS LIMITED
For more info SHARE ANALYSIS: KOV - KORVEST LIMITED
For more info SHARE ANALYSIS: MGR - MIRVAC GROUP
For more info SHARE ANALYSIS: MIN - MINERAL RESOURCES LIMITED
For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LIMITED
For more info SHARE ANALYSIS: ORA - ORORA LIMITED
For more info SHARE ANALYSIS: ORI - ORICA LIMITED
For more info SHARE ANALYSIS: RHC - RAMSAY HEALTH CARE LIMITED
For more info SHARE ANALYSIS: S32 - SOUTH32 LIMITED
For more info SHARE ANALYSIS: SEK - SEEK LIMITED
For more info SHARE ANALYSIS: SIG - SIGMA HEALTHCARE LIMITED
For more info SHARE ANALYSIS: TLS - TELSTRA GROUP LIMITED