Market wraps 9th July 2024

Morning Bell 9 July

The S&P500 and the Nasdaq both closed at all-time highs ahead of inflation data and second-quarter earnings reports. The S&P500 is coming off its fourth positive eek in the last give amid ongoing optimism that easing inflation could lead to the Fed interest rate cuts. The index closed 0.1% higher overnight, while the tech-heavy Nasdaq gained 0.28% and the Dow Jones closed slightly lower, down 0.08%.

It was a choppy session locally yesterday, with the ASX200 closing in the red, down 0.76%, as materials and energy stocks weighed down on the market.

What to watch today:

  • The ASX200 is set to open higher this morning, with the SPI futures suggesting a rise of 0.22% at the open.
  • In economic data, Westpac’s consumer confidence data will be out today, forecast to fall 0.3%. The benchmark current sits at 83.6 in June, far from the neutral level of 100 as fiscal support measures have been insufficient to ease worries of high inflation and heightened interest rates. Also today, NAB’s business confidence data will be released, also forecast to decline.
  • In commodities,
    • Crude oi is trading more than 1.4% lower at US$82.25 per barrel, extending the pullback from the over-two-month high of $84 hit on July 4th, with short-term supply threats a concern.
    • The price of gold is down more than 1.3% at $2,359.16 an ounce, taking a pause from the sharp rally that was led by expectations that the Federal Reserve could cut interest rates in September, following the soft US jobs data released last week.
    • And iron ore is also trading in the red, down 1.55% to US$111.31 per tonne, pulling back from an over one-month high as a four-day rally triggered profit taking.

Trading Ideas:

  • Bell Potter have downgraded their recommendation on IGO Limited (ASX:IGO from a Hold to a Sell, and have lowered their 12-month price target from $7.60 to $5.15. at it’s current price of $5.70, this is down 9.6% in a year.
  • And Trading Central have identified a bearish signal in LGI Limited (ASX:LGI) indicating that the stock price may fall from the close of $2.84 to the range of $2.71 to $2.75 over 34 days, according to the standard principles of technical analysis.