Market Updates

Wall Street finished in negative territory overnight, snapping an eight-day winning streak after Treasury yields jumped as Fed Chair Powell stated that it is too early for the central bank to definitively announce the conclusion of its rate hike cycle, despite not presenting a case for further rate increase. The Dow finished 220 points lower, near worst levels (-0.65%). Dow up 55 points at best. Dow down 253 points at worst. While the S&P 500 and the NASDAQ lost 0.81% and 0.94%, respectively. US treasuries jumped, 10Y yield up 12.4bps and 2Y yield up 9.7bps. A weak 30Y note auction also weighed on market sentiment, raising concerns about the market’s ability to absorb new debt. The USD Index rose, pressuring commodity prices, and the VIX gained 6.9%. On the corporate front, Disney gained 6.7% after its earnings topped forecasts, while Arm Holdings fell 5.2% on weak forecasts, and Telsa fell 5.4% after HSBC analysts rated its stock to the equivalent of sell with a target price 30% lower than its current valuation.
ASX to slip. SPI Futures down 5 points (-0.07%).

• Base metals are broadly lower, pressured by a rising USD. Copper +0.1%, Zinc -0.57%, Nickel -1.77%, Aluminium -0.97%, Lead -0.21%, and Tin -0.26%.
• Gold firmed following Powell’s hawkish speech, up 0.45%.
• 10Y yields: US 4.638%, Australia 4.641%, and Germany 2.661%.
• Oil prices flat, finishing just below $80 a barrel after a sell-off earlier this week. Brent Crude up 0.05%, and WTI up 0.65%.

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Wall Street finished lower near worst levels, pulled back by mega-caps and energy stocks after signs of a cooling job market reinforced bets the Fed could start cutting rates early next year. The Dow Jones fell 70 points (-0.19%). Dow up 168 points at best. Dow down 100 points at worst. S&P 500 lost steam amid a slide in energy producers, down 0.39%, with 7 of the 11 sector indices lower led by energy -1.67% and tech -0.76%. The tech-heavy NASDAQ Composite slid 0.58%, and small caps Russell 2000 fell 0.21%. 10Y yields extended their decline down 5.9bps to 4.121%, while the 2Y yield edged slightly higher. ADP employment data provided fresh evidence of labour market weakness following yesterday’s JOLTS report . WTI Oil fell below $70 a barrel -4.13%, its lowest since early July, on demand concerns and increased supply shown in an EIA report. Among stocks, mega cap tech stocks showed weakness, with Google, Apple, and Microsoft losing between 0.6%-1%.
ASX to fall. SPI Futures down 34 points (-0.47%).

• Euro Area retail sales rose by 0.1% in Oct-23, falling short of the expected 0.2% increase.
• Copper fell For a third consecutive session, down 0.73%, touching a two-week low as the USD firmed.
• Dalian Iron ore rose 1.64% on positive economic data and persistently strong demand from China.
• Golf firms 0.39% as treasury yields ease, stabilising after a rapid fall from a record high earlier this week.
• Lithium down again, off 4.61%.
• 10Y yield: US 4.121%, Australia 4.245%, and Germany 2.199%.
• Brent Crude and WTI sharply lower, down % and % respectively, hitting June lows following EIA reports of a larger-than-expected rise in US gasoline inventories, raised demand concerns.

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ASX 200 made up yesterday’s losses closing up 58 points to 7601 (+0.8%). First ‘Super Thursday’ of results. BHP lost 1.7% on a huge write-down on nickel assets (more like liabilities) and Samarco issues. RIO dropped 0.7% with FMG 1.4% to the good. S32 results were greeted by a thud, down 4.6% and lithium stocks mixed. Oil and gas were down heavily as crude fell, WDS was off 3.0% (impairments announced after hours), and STO was down 0.8%. Coal stocks not such a merry old place as WHC fell 5.7% on disappointing earnings. Financials were firm, CBA modestly but the Big Bank Basket rose to $199.60 (0.6%). MQG had a very good day up 3.3%, coattailing on GMG and data centre outlook with it AirTrunk business. GQG up 4.9% following MFG up 4.4% on new CEO news and results. Insurers mixed ahead of results. REITs enjoyed a day out, GMG leading the pack with a guidance upgrade and a 7.0% rise. Yields fell on the jobs numbers giving the RBA room to move. SGP up 2.9% and MGR rising 1.3%. Industrials were firm with a good result from Kmart helping WES to a 5.0% gain. Supermarkets were higher, Tech gained on a bid for ALU, XRO up 5.8% and WTC rising 4.8%. Retailers were in demand on rate cut chatter, JBH up 3.6% and CTT still charging up 3.1%. Good comments on TPW helping it rally 6.4%. Plenty happening in corporate news: TLS drifted 2.3% lower on a quasi-guidance cut, PME was trashed 13.0% after meeting expectations, and DTL smashed on an earnings miss down 13.1%. BLX shone on its results up 5.3%. On the economic front, the headline unemployment the rate rose to 4.1%. The RBA will be pleased, yields dropped, Asian markets firmed, HK up 0.2% and Topix up 0.1%. Dow Futures up 5 points. NASDAQ Futures down 5 points.
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Welcome to the new MT Breakfast Briefing Podcast. (New name, thoughts?)
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Same content - different format.

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ASX 200 hits another record close up 42 points to 7260. Banks leading the charge with the Big Bank Basket up to $183.60. Miners were mixed but out of the limelight. Industrials shone with WOW up 1.5% and tech stocks firmed with APT up 3.3%. Big gainer today was SZL on a three year deal with Target Corp and WES fell 2% as it held an investor day.