Proactive Investors
Published Aug 10, 2023 10:09
Updated Aug 10, 2023 10:30
The morning catch up: Flat day expected on the ASX; China in deflation; overseas markets mixed ahead of US CPI
Another flat day for the ASX is tipped today after the market closed just 0.4% higher yesterday, while overseas markets were mixed overnight.
The ASX200 finished up 27 points (0.37%) yesterday at 7,338, led by Financials (1.21%), Communications (+0.95%) and IT (+0.87%). All sectors were in the green except Utilities (-0.27%), Real Estate (-0.72%) and Healthcare (-0.89%).
The world’s second-largest economy, China, fell into deflation in July with CPI down 0.3% on the year. This marked China’s first year-on-year consumer price index decline in two years, adding pressure on Beijing to release more direct policy stimulus.
In the US overnight, indices fell for a second session in a row on Wednesday, dragged down by tech stocks, with the sell-off intensifying towards the end of the day. This comes ahead of Thursday’s release of the July consumer-price index, figures that are closely watched as the Fed works to bring reducing inflation back toward its 2% target.
What happened overnight?
Here’s what saw (source CommSec):
US markets
US sharemarkets fell on Wednesday as investors awaited inflation data due later this week. Banks extended losses after Moody's downgraded several small and mid-sized banks on Tuesday. Shares of Goldman Sachs (NYSE:GS) slid 1.6%, JPMorgan Chase (NYSE:JPM) dipped 1.3%, Bank of America (NYSE:BAC) fell by 1.3% and Wells Fargo (NYSE:WFC) shed 1.7%.
Nvidia, which has more than tripled this year amid the artificial intelligence frenzy, slipped 4.7%. Lyft shares tumbled 10% as the company signalled it would double down on competitive pricing to catch up with rival Uber.
Shares of the electric vehicle maker Rivian Automotive shed 9.9% a day after it reported a smaller-than-expected loss. Roblox shares dropped 21.9% after the online gaming platform fell short of second-quarter estimates.
Casino owner Penn Entertainment's shares surged 9.1% on a US$2 billion deal with Walt Disney (NYSE:DIS)'s ESPN to launch a sports betting business. Disney's shares dipped 0.7% ahead of its results.
The Dow Jones index fell by 191 points or 0.5%. The S&P 500 index slid 0.7% and the Nasdaq index shed 162 points or 1.2%.
European markets
European sharemarkets ended higher on Wednesday on a boost from energy stocks, which rose by 2.3%, tracking oil prices higher. Italian lenders rebounded from the previous session's sharp losses after the government eased its stance on the windfall tax on banks.
Shares of Finecobank, Banco BPM and UniCredit added between 4.4% and 7.1%. European bank shares gained 1%. Delivery Hero (ETR:DHER, OTCQX:DLVHF) shares advanced 4.7% after the German online takeaway food company raised its full-year revenue outlook.
The continent-wide FTSEurofirst 300 index rose by 0.4%. And in London the UK FTSE 100 index gained 0.8%
Currencies
Were mixed against the US dollar in European and US trade.
Global oil prices rose by up to 1.8% on Wednesday after a steep drawdown in US fuel stockpiles.
US gasoline stocks fell by 2.66 million barrels last week, US government data showed, compared with analysts' expectations for a small decline.
In Australia, weekly payroll jobs data is released. Earnings are scheduled for AGL Energy (ASX:AGL) (ASX:AGK), Alliance Aviation, AMP, Arena REIT, Boral, Downer EDI and QBE Insurance. Rio Tinto (ASX:RIO) shares trade ex-dividend.
In the US, data on consumer price inflation (CPI) and weekly initial jobless claims are released with the monthly budget statement. Alibaba (NYSE:BABA), Krispy Kreme, News Corp (NASDAQ:NWSA) (NASDAQ:NWS) and Ralph Lauren (NYSE:RL) are all expected to release earnings results.
On the small cap front
The S&P ASX Small Ordinaries lost 0.06% yesterday. You can read more about the following throughout the day.
Read more on Proactive Investors AU
Disclaimer
Written By: Proactive Investors
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.