The Overnight Report: Technology’s Out!

Daily Market Reports | Jan 14 2022

World Overnight
SPI Overnight 7328.00 – 38.00 – 0.52%
S&P ASX 200 7474.40 + 35.50 0.48%
S&P500 4659.03 – 67.32 – 1.42%
Nasdaq Comp 14806.81 – 381.58 – 2.51%
DJIA 36113.62 – 176.70 – 0.49%
S&P500 VIX 20.31 + 2.69 15.27%
US 10-year yield 1.71 – 0.01 – 0.81%
USD Index 94.87 – 0.12 – 0.13%
FTSE100 7563.85 + 12.13 0.16%
DAX30 16031.59 + 21.27 0.13%

Greg Peel is scheduled to return after Australia Day.

SPI futures this morning are indicating a weaker end to a rather wishy-washy weekly performance that saw technology and high PE stocks in particular feeling the brunt of money outflows.

While everybody's focus remains on bond markets and central bank commentary, our five cents worth is that investors are being taught a harsh lesson about (over)crowded positions.

When everybody leans the same way and then reverses course, the boat will look like it is sinking to the one side, albeit only for the time being. Of course, as no-one knows how much money is still looking to shift, it is equally impossible at this stage to accurately predict how long this process still has to run.

But it will end. When the Fat Lady stops singing, presumably (and those with cash at hand will jump on the freshly-minted opportunities).

Commodities, gold and silver included, had a down-day generally, with oil and iron ore chipping in too, which likely explains the rather subdued looking indication by the SPI futures this morning.

After today follows the weekend, which in the current context means shares won't continue falling for at least 48 hours. Enjoy.

Spot Metals,Minerals & Energy Futures
Gold (oz) 1822.30 – 2.90 – 0.16%
Silver (oz) 23.06 – 0.07 – 0.30%
Copper (lb) 4.49 – 0.03 – 0.63%
Aluminium (lb) 1.32 – 0.03 – 1.86%
Lead (lb) 1.06 + 0.00 0.12%
Nickel (lb) 10.02 – 0.04 – 0.36%
Zinc (lb) 1.61 – 0.01 – 0.71%
West Texas Crude 81.54 – 1.28 – 1.55%
Brent Crude 83.90 – 0.87 – 1.03%
Iron Ore (t) 127.95 – 3.65 – 2.77%

The Australian share market over the past thirty days…

BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS
ARB ARB Corp Downgrade to Underperform from Neutral Credit Suisse
ATL Apollo Tourism & Leisure Upgrade to Buy from Hold Ord Minnett
CVN Carnarvon Energy Downgrade to Accumulate from Buy 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
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.)

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