article 3 months old

The Overnight Report: Chinese Rate Cut

Daily Market Reports | Jan 18 2022

World Overnight
SPI Overnight 7340.00 + 22.00 0.30%
S&P ASX 200 7417.30 + 23.40 0.32%
S&P500 4662.85 + 3.82 0.08%
Nasdaq Comp 14893.75 + 86.94 0.59%
DJIA 35911.81 – 201.81 – 0.56%
S&P500 VIX 19.19 – 1.12 – 5.51%
US 10-year yield 1.77 + 0.06 3.57%
USD Index 95.26 + 0.09 0.09%
FTSE100 7611.23 + 68.28 0.91%
DAX30 15933.72 + 50.48 0.32%

Greg Peel is scheduled to return after Australia Day.

Overnight price action was quiet and mixed while US investors had a day off thus no firm direction was coming from either US treasuries or equity markets. Bond futures are signalling the yield on US treasuries hasn't peaked just yet.

Australian investors used the relative quiet yesterday to scoop up some beaten-down shares as Wesfarmers reported there is no need to start panicking about omicron and supply chains just yet.

Not that Inghams Group would necessarily agree with that sentiment, or Bega Cheese for that matter.

China surprised with a rate reduction yesterday as its economy continues to generate soft data, even though forecasts were beaten with yesterday's Q4 GDP number.

It did not help iron ore. Most base metals faced more selling orders too, but oil and precious metals stood their ground.

SPI futures are suggesting investors locally are of the intent to buy more bargains ahead of the February reporting season, soon upon us.

Meanwhile, Australian retirees might do themselves one big favour and read the latest announcement made by US powerhouse JP Morgan. The banking giant is attempting to outspend all the fintechs combined that keep chipping away at core markets and clientele.

The underlying message is the future ahead requires investing; lots of it. Survival of the fittest has become a genuine contest, and this is but the early stage of the industry challenge that is building, globally.

Spot Metals,Minerals & Energy Futures
Gold (oz) 1819.20 + 1.10 0.06%
Silver (oz) 22.98 + 0.02 0.09%
Copper (lb) 4.43 + 0.01 0.14%
Aluminium (lb) 1.36 + 0.01 0.41%
Lead (lb) 1.07 – 0.00 – 0.43%
Nickel (lb) 10.12 – 0.07 – 0.73%
Zinc (lb) 1.61 – 0.01 – 0.44%
West Texas Crude 84.30 + 0.48 0.57%
Brent Crude 86.53 + 0.47 0.55%
Iron Ore (t) 124.00 – 2.75 – 2.17%

The Australian share market over the past thirty days…

AGL AGL Energy Upgrade to Outperform from Neutral Credit Suisse
AKE Allkem Upgrade to Outperform from Neutral Credit Suisse
AWC Alumina Ltd Upgrade to Outperform from Neutral Credit Suisse
BGA Bega Cheese Downgrade to Hold from Add Morgans
CVN Carnarvon Energy Downgrade to Accumulate from Buy Ord Minnett
CWY Cleanaway Waste Management Upgrade to Overweight from Equal-weight Morgan Stanley
JBH JB Hi-Fi Upgrade to Add from Hold Morgans
PAR Paradigm Biopharmaceuticals Upgrade to Hold from Reduce Morgans
PLS Pilbara Minerals Upgrade to Neutral from Underperform Credit Suisse
QBE QBE Insurance Upgrade to Outperform from Neutral Macquarie

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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