The Overnight Report: Commodities Up

Daily Market Reports | Jan 13 2022

World Overnight
SPI Overnight 7352.00 – 3.00 – 0.04%
S&P ASX 200 7438.90 + 48.80 0.66%
S&P500 4726.35 + 13.28 0.28%
Nasdaq Comp 15188.39 + 34.94 0.23%
DJIA 36290.32 + 38.30 0.11%
S&P500 VIX 17.62 – 0.79 – 4.29%
US 10-year yield 1.73 – 0.02 – 1.20%
USD Index 94.99 – 0.62 – 0.65%
FTSE100 7551.72 + 60.35 0.81%
DAX30 16010.32 + 68.51 0.43%

Greg Peel is scheduled to return post Australia Day.

Equity markets have calmed down, but retain a preference for cyclicals as commodities respond favourably to a weakening US dollar.

Bond markets are no longer moving rapidly in either direction, while economists are refreshing their timeline and forecasts for Fed rate hikes in 2022.

ANZ Bank economists are now projecting five Fed rate hikes this year, starting in March.

As US CPI surged to a 40-year high in December, the outlook for Fed rate hikes (and thus US bond yields) hinges on how long consumer price inflation will remain at such high a level.

Clearly, ANZ Bank is now convinced ongoing labour shortages and covid-related supply chain disruptions are likely to stay in place for much longer than previously anticipated.

Spot Metals,Minerals & Energy Futures
Gold (oz) 1825.20 + 2.20 0.12%
Silver (oz) 23.13 + 0.34 1.49%
Copper (lb) 4.52 + 0.12 2.72%
Aluminium (lb) 1.34 – 0.00 – 0.30%
Lead (lb) 1.06 + 0.01 0.50%
Nickel (lb) 10.05 + 0.24 2.42%
Zinc (lb) 1.62 + 0.01 0.53%
West Texas Crude 82.82 + 1.41 1.73%
Brent Crude 84.77 + 1.02 1.22%
Iron Ore (t) 131.60 + 3.00 2.33%

The Australian share market over the past thirty days…

ARB ARB Corp Downgrade to Underperform from Neutral Credit Suisse
ATL Apollo Tourism & Leisure Upgrade to Buy from Hold Ord Minnett
BGA Bega Cheese Downgrade to Hold from Accumulate Ord Minnett
FMG Fortescue Metals Downgrade to Sell from Neutral Citi
JHX James Hardie Industries Downgrade to Equal-weight from Overweight Morgan Stanley
LNK Link Administration Downgrade to Hold from Accumulate Ord Minnett
PME Pro Medicus Upgrade to Hold from Reduce Morgans
SHL Sonic Healthcare Downgrade to Neutral from Outperform Credit Suisse
TPG TPG Telecom Upgrade to Buy from Hold Ord Minnett
TRS Reject Shop Downgrade to Hold from Add Morgans

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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