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ASX Pre Market "Need for Speed Read" 12/08/2022

Harbour Bridge Sydney Australia

Check out our daily ASX pre-market and AU macro outlook below!


1) ASX Economic Calendar

2) Market Snapshot & Highlights

3) Global Markets Headlines

4) ASX StockWatch

5) Broker Upgrades/Downgrades

6) Macro Economic Calendar

ASX Economic Calendar

- ASX 200 SPI futures to open LOWER -0.3% near 6,946
Listing – None

Market Snapshot & Highlights (as of 8 am AEST)

Indices Change % Currencies Change % Commodities Change %
NZSX 50 +0.2% AUDUSD 0.7104 +0.4% Gold Fut. -0.4%
Dow Jns +0.1% AUDEUR 0.6682 +0.1% Thermal Coal +0.6%
S&P 500 -0.1% AUDNZD 1.1052 -0.1% Brent Oil +2.3%
NASDAQ -0.6% EURUSD 1.0323 +0.3% Iron Ore Fut +1.6%
STOXX 50 +0.2% USDJPY 132.99 +0.1% Silver Fut. -2.3%
FTSE 100 -0.6% USDCAD 1.2761 -0.1% Uranium -1.5%
DAX -0.1% Treasuries   Copper +1.0%
DXY -0.1% 2yr AU/US 3.02% / 3.23%  Nickel +5.2%
VIX +2.1% 10yr AU/US 3.40% / 2.89% Aluminium +1.1%
    Cryptos   Wheat +1.2%
    Bitcoin $24,190 +1.0% Natural Gas +6.2%

Global Markets Commentary
- In US economic data, the producer price index (PPI) fell by 0.5% in July but was up by 9.8% on the year (survey: +10.4%). The core PPI (ex-food and energy) rose by 0.2% in July to be 7.6% higher on a year ago (survey: +7.7%). Initial jobless claims rose by 14,000 to 262,000 last week (survey: 265,000).
- European share markets closed mostly lower on Thursday. The pan-European STOXX 600 index rose by 0.1%. Shares of Aegon jumped 8.9% after the Dutch insurer raised its full-year forecast.
- US share markets were mixed on Thursday. US producer prices unexpectedly fell in July for the first time in more than two years as energy costs declined. But with the US Federal Reserve set to keep its monetary policy tight, shares of big technology names like Tesla (2.6%) and Amazon (-1.4%) both fell. Walt Disney shares lifted 4.7% after the media giant posted stronger-than-expected subscriber numbers for the last quarter.
- Major currencies were mostly stronger against the US dollar in European and US trade.
- Global oil prices rose on Thursday after the International Energy Agency raised its oil demand growth forecast. World oil consumption is expected to increase by 2.1 million barrels per day (bpd) this year, up by 380,000 bpd, from the previous forecast. OPEC expects oil demand to lift by 3.1 million bpd in 2022, down by 260,000 bpd from its previous forecast.
- Base metal prices rose on Thursday as the US dollar weakened. Slower US inflation also boosted risk appetite while concerns mounted over supply disruptions. Iron ore futures rose by US$1.74 or 1.6% to US$111.01 a tonne on reports that Chinese regulators will maintain stable property financing to support housing demand.   

Global Markets Headlines

  • Rivian posts second-quarter revenue above estimates, but expects a wider loss for the year
  • Ether surges to a two-month high after ethereum inches closer to long-awaited upgrade
  • U.S. wholesale inflation fell 0.5% in July, in another sign that price increases are slowing
  • Beijing’s new trade restrictions on Taiwan after Pelosi’s visit are a drop in the ocean
  • Oil rises as IEA hikes 2022 demand growth forecast
  • Apple expects to sustain iPhone sales through end of year
  • Hong Kong economic growth hopes crumble

ASX StockWatch

Stock Name Ticker Headlines +ve/-ve
Fonterra Shareholders' Fund FSF Fonterra earnings set to hit top end of guidance range - New Zealand dairy cooperative Fonterra said in an update to its guidance for its financial year that ended in July that earnings would likely reach “the top end of its current guidance of 25¢ to 30¢ per share,” the company said on Friday. “While we are still in the process of finalising and auditing our FY22 numbers, we now have enough certainty overall to provide an update ahead of our annual results announcement in September,” said Miles Hurrell, chief executive of Fonterra. +ve
Insurance Australia Group Ltd IAG IAG swings to profit of $347m - IAG has delivered a net profit of $347 million in the 2022 financial year, dragging the insurer up from a net loss of $427 million a year ago, the company said in its results on Friday. The profits come despite a 2.9 per cent dip in revenues, which touched $18.3 billion for the year, compared with $18.9 billion in the 2021 financial year. The profits of $347 million place the company closer to the $435 million generated in the 2020 financial year, which was only partly impacted by the pandemic. Shareholders will be paid a final 5c dividend on September 22, taking full year payout to 11c, down from the 20c in FY21. +ve
Baby Bunting Group Ltd BBN Baby Bunting FY Revenue A$507.3 Million, Up 8.3% - FY Net Profit A$19.5 Million, Up 15%.Final Dividend 9.0 Australian Cents/Security. Says Total Sales Up 19% in FY 2023 So Far. Says Same-Store Sales Up 15% in FY 2023 So Far. FY Ebitda A$50.5 Million, Up 16%. Expects to Open Second Store in NZ in FY 2023. Expects to Open Minimum Six Stores in Australia in FY 2023. Declines to Provide FY 2023 Earnings Guidance +ve
Resmed CDI RMD esMed grows net income two thirds to $US779.4m - ResMed, which makes devices to address sleep apnoea, grew net income by two thirds to $US779.4 million in the financial year that ended in June following a 12 per cent increase in revenue. The San Diego-based company that has dual listings in sharemarkets in Australia and the US grew revenues 12 per cent to $US3.6 billion for the year, helped along by a 4 per cent jump in the June quarter alone. “Our fourth quarter and full-year fiscal year 2022 results demonstrate strong growth and ResMed’s market leadership,” said Mick Farrell, ResMed chief executive. +ve

Broker Upgrades/Downgrades

Company ASX Rating Company ASX Rating
New Century Resources Ltd NCZ New Century Resources Initiated with A$3.60/Share PT by Shaw & Partners Commonwealth Bank Aust CBA Commonwealth Bank of Australia Price Target Cut 7.7% to A$96.00/Share by Jefferies
Commonwealth Bank Target Price Cut 4.4% to A$86.86/Share by Goldman Sachs
Commonwealth Bank of Australia Price Target Cut 4.7% to A$86.50/Share by Citi
Commonwealth Bank of Australia {T Raised 1.2% to A$83.00/Share by Morgan Stanley
COMPUTERSHARE LIMITED CPU Computershare Price Target Cut 8.2% to A$27.07/Share by Jefferies
Computershare Price Target Raised 4.8% to A$28.20/Share by Citi
Computershare Price Target Cut 5.1% to A$28.00/Share by Morgan Stanley
Computershare Target Price Raised 2.9% to A$36.00/Share by Macquarie
Emeco Holdings Limited EHL Emeco Price Target Cut 31% to A$1.00/Share by Jefferies
BlueScope Steel Limited BSL BlueScope Steel Price Target Cut 13% to A$20.10/Share by Jefferies NRW Holdings Limited NWH NRW Holdings Price Target Raised 8.3% to A$2.60/Share by Jefferies
Imdex Limited IMD Imdex Price Target Cut 27% to A$2.40/Share by Jefferies Centuria Capital Group CNI Centuria Capital Target Price Cut 10% to A$2.18/Share by Goldman Sachs
St Barbara Ltd SBM St Barbara Price Target Cut 4.3% to A$1.10/Share by Citi Costa Group Holdings Ltd CGC Costa Group Target Price Cut 1.4% to A$3.60/Share by Goldman Sachs
CSL Limited CSL CSL Resumed at A$307.00/Share Target Price by Goldman Sachs Graincorp Ltd GNC GrainCorp Price Target Cut 15% to A$8.50/Share by UBS
GrainCorp Price Target Cut 5% to A$8.55/Share by Bell Potter
GrainCorp Target Price Cut 0.9% to A$11.00/Share by Macquarie
GrainCorp Price Target Cut 6% to A$8.29/Share by Wilsons
GrainCorp Price Target Cut 14% to A$8.90/Share by Morgans
Alliance Aviation Services Ltd AQZ Alliance Aviation Price Target Cut 18% to A$3.43/Share by Wilsons Dexus Industria REIT DXI Dexus Industria REIT Target Price Raised 1.7% to A$3.08/Share by Macquarie
City Chic Collective Ltd CCX City Chic Collective Price Target Cut 33% to A$3.20/Share by Wilsons Sigma Healthcare Ltd SIG Sigma Healthcare Target Price Raised 9.6% to A$0.57/Share by Macquarie
Woodside Energy Group Ltd WDS Woodside Energy Target Price Cut 1.6% to A$28.05/Share by Macquarie National Australia Bank NAB National Australia Bank Price Target Raised 7.2% to A$32.70/Share by JPMorgan

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

Macro Economic Calendar

Economic Calendar (TODAY)

Economic Calendar (YESTERDAY)

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