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Morning Wrap

ASX to slip, techs pace US stocks lower - 30/11/22

Market Highlights

ASX futures were 1 point lower to 7259 near 8am AEDT
 
AUD +0.6% to 66.89 US cents
Bitcoin +1.6% to $US16,481 near 8.20am AEDT
On Wall St at 4pm: Dow +0.01% S&P -0.2% Nasdaq -0.6%
In New York: BHP +3.1% Rio +4.1% Atlassian -3.5%
Tesla -1.1% Apple -2.1% Amazon -1.6% Alphabet -0.8%
In Europe: Stoxx 50 -0.03% FTSE +0.5% CAC +0.1% DAX -0.2%
Spot gold +0.5% to $US1750.14/oz at 1.45pm New York
Brent crude +0.5% to $US83.59 a barrel
Iron ore +2.4% to $US101.25 a tonne
10-year yield: US 3.75% Australia 3.60% Germany 1.91%
US prices as of 4.11pm New York
 
Australian shares are poised to open little changed, taking direction from modest losses in New York. A retreat in tech shares, as US Treasury yields spiked higher, dragged on the Nasdaq.
 
ASX futures were 1 point lower to 7259 near 8am AEDT.
 
The local currency was 0.6 per cent higher; the Bloomberg dollar spot index slipped 0.1 per cent.
 
On bitstamp.net, bitcoin was 1.6 per cent higher to $US16,481 near 8.20am AEDT.
 
The yield on the US 10-year note rose 6 basis points to 3.75 per cent at 4.11pm in New York.
 
On Wall Street, information tech paced six of the S&P 500’s 11 industry sectors lower. Real estate led the five advancers. The VIX was little changed.
 

Movers & ShakersBroker Upgrades & Downgrades

(BOQ) Bank Of Queensland Price Target Cut 25% to A$7.50/Share by Credit Suisse
(CAI) Calidus Resources Price Target Cut 12% to A$0.75/Share by Canaccord Genuity
(CTD) Corporate Travel Management Price Target Cut 20% to A$18.49/Share by Citi
(CWY) Cleanaway Waste Management Price Target Raised 3.5% to A$2.99/Share by Goldman Sachs
(FLK) Fletcher Building Initiated with A$5.90/Share Price Target by Goldman Sachs
(HLS) Healius Price Target Cut 12% to A$3.20/Share by Credit Suisse
​(HLS) Healius Price Target Cut 9.3% to A$3.40/Share by Citi
(NHC) New Hope Price Target Cut 2.2% to A$4.50/Share by Citi
(WES) Wesfarmers Price Target Raised 1.8% to A$56.00/Share by UBS
 

Today's Agenda

Local: RBA’s Jonathan Kearns, head of domestic markets, speaks at the 2022 Australian Securitisation Conference in Sydney at 11am AEDT; Third quarter construction work done, building approvals October, private sector credit October and CPI indicator October all at 11.30am AEDT
 
Overseas data: NZ October building permits, ANZ business confidence November; China November manufacturing and services PMIs at 12.30pm AEDT; Japan October industrial production; Eurozone preliminary CPI November at 9pm AEDT; US November ADP report, third quarter annualised GDP, Chicago MNI November PMI, Pending home sales October, Fed Beige Book
 

Unites States

AMC Networks, whose TV programs include The Walking Dead, is planning significant cutbacks following the departure on Tuesday of its chief executive officer, who stepped down less than three months after taking the top job.
 
US consumer confidence slipped to a four-month low in November, with households less keen to spend on big-ticket items over the next six months amid high inflation and rising borrowing costs, heightening the risks of a recession next year.
 
The Conference Board’s consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October.
 
Oxford Economics on the latest Conference Board report: “Consumers’ increased pessimism is consistent with our view that consumer spending and the broader economy are downshifting to a much slower growth path amid high inflation, rapidly rising interest rates, and financial market volatility”.
 

Commodities

In an outlook note, TD Securities said it expects that capital flows into the sector and prices will be subdued into 2023, as demand growth for crude oil and industrial metals weakens amid increasingly restrictive monetary policy and a growing risk of a global recession.
 
“Crude oil prices are projected to move higher into 2023, with base metal prices expected to post relatively modest cyclical declines in the early part of the year, followed by a robust recovery.”
 
TD said it recommends shorting gold, silver and platinum into early 2023.
 
The outlook for base metals is still clouded by the expectation of global growth slowing, and some China-specific challenges too.
 
I”China’s property crisis has yet to show signs of bottoming, creating a major challenge for base metal bulls. The average delay in home completions has recently reached 14 months, destroying homebuyers’ confidence in the completion of new projects as highlighted by the steep drop in new home sales.”
 
If 15 planned coal mining projects in Australia enter operation they would boost the country’s methane emissions from the dirtiest fossil fuel by nearly a fifth, according to an analysis from energy think tank Ember.
 
Australia’s coal mines already cause more planetary warming in a typical year than emissions from all the country’s cars.
 
The new projects were previously approved but are facing fresh scrutiny under Prime Minister Anthony Albanese’s Labor coalition, which has joined the Global Methane Pledge that aims to cut global emissions of the potent greenhouse gas 30 per cent by 2030.
 

Opto Research

 

Global Markets Headlines

 

(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)

 


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