The Overnight Report: More Records, Trillions And Blue Sky

Daily Market Reports | Jan 17 2020

More all-time records were broken on Wall Street last night with Alphabet's (Google) market cap rising above US$1trn?

World Overnight
SPI Overnight (Mar) 7025.00 + 36.00 0.52%
S&P ASX 200 7041.80 + 47.00 0.67%
S&P500 3316.81 + 27.52 0.84%
Nasdaq Comp 9357.13 + 98.44 1.06%
DJIA 29297.64 + 267.42 0.92%
S&P500 VIX 12.32 – 0.10 – 0.81%
US 10-year yield 1.81 + 0.02 1.17%
USD Index 97.04 + 0.08 0.08%
FTSE100 7609.81 – 32.99 – 0.43%
DAX30 13429.43 – 2.87 – 0.02%

Greg Peel is still on holidays. In the meantime, Jessica Amir from Bell Direct is providing a snapshot of insights and developments from overseas markets overnight.

By Jessica Amir, Bell Direct

US equites closed at brand new record highs overnight on stronger than expected jobs data, on top of better than expected earnings from Morgan Stanley. Base metal commodities also had a strong night too, all which is why the Aussie share market futures are suggesting a 0.4%/25 point rise at the open taking us further into brand new record skies. 

Yesterday the local bourse passed the 7,000 point milestone for the first time in history after the ASX200 rose 0.67%/47 points to 7,042 points.

Morgan Stanley’s shares jumped 7% in the session after it revealed all three of its divisions, investment management, wealth and trading all produced more revenue than expected. The big banks shares followed, moving higher. 

Morgan Stanley is the last of the six largest US banks to report and is one of four of the majors that beat analysts expectations, with Citigroup, J.P Morgan and Bank of America reporting earlier this week with profits beating expectations and surging bond trading results. 

Also overnight, Microsoft shares hit record levels and Google’s parent Alphabet's market cap hit $1 trillion for the first time. What a night hey?

On Thursday the benchmark S&P500 rose 0.8% breaking above 3,300 points for the first time, while Nasdaq advanced 1.1% and the blue-chip Dow Jones surged 0.9%/267 points.

Across the Atlantic Ocean 

European stocks closed mostly higher with investor reacting to the partial trade deal being signed. The Stoxx 600 rose 0.2%, UK’s FTSE fell -0.4%, The French CAC rose 0.1% and the Germany DAX closed -0.01% lower. 

Gold slipped -0.05%/US$0.90 to US$1,552 an ounce. 

Oil gained 1.1%/US$0.60 to US$58.41 a barrel.

Iron ore -0.25% lower at US$94.83 a tonne.

Australian dollar slipped -0.12% to 68.99 US as traders weigh up our competitiveness in the wake of the US China trade deal. 

What else to watch today?

Yesterday the second largest company on the ASX, CSL cleared the $300 mark for the first time after Credit Suisse upped its price target to $320, as it expects 11% earnings growth this financial year and 22% next. Credit Suisse says although some consider its valuation is stretched as it's trading at a 90% premium to Australian industrial stocks, its “valuation is justified given CSL’s strong market leading position in a niche industry that has robust fundamentals”. 

Spot Metals,Minerals & Energy Futures
Gold (oz) 1553.30 – 1.80 – 0.12%
Silver (oz) 17.92 – 0.04 – 0.22%
Copper (lb) 2.83 + 0.02 0.58%
Aluminium (lb) 0.81 + 0.01 0.87%
Lead (lb) 0.90 + 0.02 1.79%
Nickel (lb) 6.21 – 0.04 – 0.71%
Zinc (lb) 1.09 + 0.01 0.65%
West Texas Crude 58.52 + 0.71 1.23%
Brent Crude 64.62 + 0.62 0.97%
Iron Ore (t) futures 95.25 – 0.05 – 0.05%
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS
BPT BEACH ENERGY Downgrade to Hold from Accumulate Ord Minnett
DHG DOMAIN HOLDINGS Downgrade to Sell from Neutral UBS
FMG FORTESCUE Downgrade to Hold from Buy Ord Minnett
FXL FLEXIGROUP Upgrade to Buy from Neutral UBS
IGO INDEPENDENCE GROUP Downgrade to Lighten from Hold Ord Minnett
IPL INCITEC PIVOT Upgrade to Equal-weight from Underweight Morgan Stanley
MOZ MOSAIC BRANDS Downgrade to Hold from Add Morgans
MTS METCASH Upgrade to Neutral from Underperform Credit Suisse
NWL NETWEALTH GROUP Upgrade to Buy from Neutral Citi
OGC OCEANAGOLD Upgrade to Buy from Accumulate Ord Minnett
ORE OROCOBRE Downgrade to Sell from Hold Ord Minnett
PDL PENDAL GROUP Downgrade to Hold from Add Morgans
QBE QBE INSURANCE Upgrade to Outperform from Neutral Credit Suisse
SBM ST BARBARA Upgrade to Buy from Accumulate Ord Minnett
STO SANTOS Downgrade to Hold from Add Morgans
SUL SUPER RETAIL Downgrade to Hold from Accumulate Ord Minnett

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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