ASX 200 to rise, Wall Street ends mixed + Brokers weigh in on lithium and gold stocks

Get up to date on overnight market activity and the big events for the day.
The Morning Wrap

Livewire Markets

ASX 200 futures are trading 17 points higher, up 0.21% as of 8:30 am AEST.

Source: Market Index
Source: Market Index


S&P 500 ticks higher amid choppy trade (Source: TradingView)
S&P 500 ticks higher amid choppy trade (Source: TradingView)


  • Major US benchmarks mostly ticked higher overnight but off best levels
  • Big tech was mostly lower while small caps, miners and real estate stocks outperformed
  • Relatively quiet session ahead of US inflation data and kickoff of earnings season
  • Gold reversed almost the entirety of last Friday’s 1.5% gain
  • High bar for Q2 earnings season, market currently expecting Q2 S&P earnings growth of 8.8%, the highest since the 9.4% print in 1Q22 (FT)
  • Banks kick off US earnings season this Friday, with JPMorgan, Citi and Wells Fargo scheduled to report
  • Banking earnings forecast to fall 10% year-on-year in Q2 amid sluggish loan growth, according to FactSet
  • French stocks see a relief rally following what many describe as "less bad outcome" from the Sunday election (Bloomberg)
  • Bond traders bet US yield curve will normalise toward a steeper slope ahead of US CPI data this week (Bloomberg)


  • Boeing to plead guilty to criminal conspiracy in connection with two fatal crashes of its 737 Max jetliner (Bloomberg)
  • Deal-making recovery expected to boost Q2 earnings for Wall Street banks (FT)
  • Carlsberg agrees to buy London-listed soft drinks maker Britvic for £3.3bn (FT)
  • Consumer-facing companies still feeling sharp pushback from customers despite easing inflation (CNBC)
  • Taiwan Semiconductor Manufacturing’s market cap hits US$1tn, expects to launch new chips in Q4 (Bloomberg)


  • Uncertainty looms for France after shock left-wing alliance gaining most seats (FT)
  • More House Democrats want Biden to step aside from presidential race (FT)


  • Israeli PM Netanyahu says any Gaza deal must let Israel resume fighting until war goals are met (Reuters)
  • EU envoy says Beijing making it "very difficult" for Brussels to deepen ties (Reuters)
  • NATO allies to pledge €40bn for Ukraine amid domestic turmoil at this week's summit (FT)


  • Eurozone economic sentiment weakens after eight consecutive increases (Reuters)
  • German exports fell more than expected in June amid weak demand from China, US and Europe (Reuters)
  • Japan's base pay climbs 2.5% in May, the fastest pace in 31 years but inflation-adjusted wages fell for a record 26th straight month (Reuters)

US-listed sector ETFs by iShares, Global X and VanEck (Source: Market Index)
US-listed sector ETFs by iShares, Global X and VanEck (Source: Market Index)


  • ASX 200 set to open higher after a sharp 0.7% pullback on Monday
  • Hanwha unlikely to launch hostile takeover bid for Austal (The Aus)
  • Ramelius confirms it is no longer in any transaction discussions with Westgold (WGX)


  • Not a whole lot going on today – A few of yesterday's winners like gold and copper set to pull back sharply
  • UBS says retail wealth fund flows rose 5.6% quarter-on-quarter to $1.19tn, with a vast majority of FUM growth attributed to investment gains during a positive period for market returns


  • Core Lithium upgraded to Neutral from Sell but target cut to $0.10 from $0.12 (Jarden)
  • Clinuvel Pharma downgraded to Hold from Add; target remains $16 (Morgans)
  • Gold Road downgraded to Neutral from Overweight with $1.90 target (JPMorgan)
  • IGO upgraded to Neutral from Underweight with $6.40 target (JPMorgan)
  • Iluka Resources upgraded to Overweight from Neutral with $8.20 target (JPMorgan)
  • Macquarie downgraded to Hold from Outperform; target up to $201 from $196 (CLSA)
  • Newmont downgraded to Neutral from Overweight with $66 target (JPMorgan)
  • Pilbara Minerals upgraded to Neutral from Underweight with $2.95 target (JPMorgan)
  • Regis Resources downgraded to Neutral from Buy but target increased to $1.90 from $1.70 (Citi)


Companies trading ex-dividend:
  • Tue 9 July: Katana Capital (KAT) – $0.05, Red Hill Minerals (RHI) – $1.50
  • Wed 10 July: None
  • Thu 11 July: Transmetro Corp (TCO) – $0.05, Westgold Resources (WGX) – $0.013
  • Fri 12 July: None
  • Mon 15 July: None
Other ASX corporate actions today:
  • Dividends paid: None
  • Listing: None
  • Earnings: None
  • AGMs: None
Economic calendar (AEST):
  • 10:30 am: Australia Consumer Confidence (Jul)
  • 11:30 am: Australia Business Confidence (Jul)
  • 12:00 am: Fed Chair Powell Testimony 

This Morning Wrap was written by Kerry Sun.

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