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The Overnight Report: Afternoon Selling

Daily Market Reports | Jan 21 2022

World Overnight
SPI Overnight 7179.00 – 66.00 – 0.91%
S&P ASX 200 7342.40 + 9.90 0.14%
S&P500 4482.73 – 50.03 – 1.10%
Nasdaq Comp 14154.02 – 186.23 – 1.30%
DJIA 34715.39 – 313.26 – 0.89%
S&P500 VIX 25.59 + 1.74 7.30%
US 10-year yield 1.83 + 0.01 0.33%
USD Index 95.80 + 0.22 0.23%
FTSE100 7585.01 – 4.65 – 0.06%
DAX30 15912.33 + 102.61 0.65%

Greg Peel is scheduled to return after Australia Day.

For a while it looked like US indices would bounce from oversold conditions, but selling resumed towards the end of the afternoon session and what initially looked like a sunny day ultimately ended with deeper losses.

Clearly, there are too many threats, too many uncertainties, and too many ifs and buts that are weighing on Mr Market's mind. It probably doesn't help when an industry stalwart like Jeremy Grantham is forecasting the "superbubble" will burst and the S&P500 stands to lose -48% a la 2008-2009.

Worried market observers point out afternoon selling has become the new standard for US equities this early in 2022.

Meanwhile, iron ore and industrial metals continue enjoying their moment under the sun.

SPI futures are indicating another down day for the ASX to close off week number three in January.

Spot Metals,Minerals & Energy Futures
Gold (oz) 1838.30 – 2.70 – 0.15%
Silver (oz) 24.43 + 0.28 1.16%
Copper (lb) 4.52 + 0.08 1.79%
Aluminium (lb) 1.41 + 0.03 2.18%
Lead (lb) 1.07 + 0.01 0.53%
Nickel (lb) 10.72 + 0.53 5.24%
Zinc (lb) 1.66 + 0.03 1.78%
West Texas Crude 86.90 + 0.22 0.25%
Brent Crude 87.08 – 1.04 – 1.18%
Iron Ore (t) 133.65 + 3.45 2.65%

The Australian share market over the past thirty days…

BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS
AKE Allkem Upgrade to Add from Hold Morgans
Downgrade to Accumulate from Buy Ord Minnett
ARB ARB Corp Upgrade to Neutral from Underperform Macquarie
BLD Boral Upgrade to Equal-weight from Underweight Morgan Stanley
CAR Carsales Downgrade to Lighten from Hold Ord Minnett
CCX City Chic Collective Upgrade to Buy from Accumulate Ord Minnett
COE Cooper Energy Downgrade to Hold from Accumulate Ord Minnett
CVN Carnarvon Energy Upgrade to Buy from Accumulate Ord Minnett
DXI Dexus Industria REIT Upgrade to Add from Hold Morgans
GNC GrainCorp Downgrade to Neutral from Buy UBS
HUB Hub24 Upgrade to Outperform from Neutral Macquarie
Upgrade to Buy from Accumulate Ord Minnett
HVN Harvey Norman Upgrade to Outperform from Neutral Credit Suisse
IMD Imdex Downgrade to Neutral from Buy UBS
MP1 Megaport Upgrade to Hold from Sell Ord Minnett
PAN Panoramic Resources Downgrade to Hold from Add Morgans
RBL Redbubble Downgrade to Equal-weight from Overweight Morgan Stanley
REA REA Group Upgrade to Buy from Hold Ord Minnett
SEK Seek Upgrade to Accumulate from Hold Ord Minnett
WES Wesfarmers Upgrade to Add from Hold 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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