Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. We'll get you across the overnight session and share our best insights to get you better set for the investing day ahead.
MARKETS WRAP
S&P 500 Session Chart: US stocks faded significantly from early strength, amid soft tech earnings
Please note the prices above are futures prices @ 7:30 am, AEDT, not NY close price
MAJOR HEADLINES
Dow surges after GDP data, but Nasdaq falls with tech stocks hit
Amazon the latest tech stock to get hammered on results, down 20% after the bell
Apple beats after the bell, but comes up light on iPhone sales and services, stock down 0.6%
Meta down 25% on the back of soft results
European Central Bank raises interest rates by 75 basis points, as expected
US 3Q GDP came in 2.6% higher on an annual basis and above the 2.3% gain economists expected
RBNZ Governor Orr says New Zealand relatively well positioned but inflation still too high
Credit Suisse nears sale of securitised-products group to Pimco and Apollo
Japan's extra budget for stimulus package to exceed $198 billion
Australia rides out Chinese sanctions as exports boom
Chinese cities step up Covid restrictions as cases remain elevated
IEA says peak fossil fuel demand possible in a few years
China President Xi says willing to work with US over peace and development ahead of Biden meeting
China has decided Taiwan's situation no longer acceptable and has begun to ratchet up pressure
THE CALENDAR
Source: Forex Factory
Not a great deal on the docket over the next 24 hours, with US pending home sales and the University of Michigan Consumer Sentiment read about the most important for markets.
Consumer sentiment was essentially unchanged in September, just 0.4 index points above August. The one-year economic outlook continued lifting from the extremely low readings earlier in the year, but gains were largely offset by modest declines in the long-run outlook.
THE CHART
Daily ASX 200 chart over the past six months
The Aussie market continues to grind higher, extending away from the September/October lows. Whilst many analysts are calling for further weakness and new lows to be created in time, you wouldn't know it looking at the chart. 6800 has been cleared, albeit modestly at this stage, and there is a fairly clear run - at least technically - into 7000. That level, however, will likely act as major technical and psychological resistance, whilst there are multiple layers of resistance all the way up to 7200.
STOCKS TO WATCH
UBS has taken a look at a couple of hot materials stocks in Pilbara Minerals (ASX: PLS) and Whitehaven Coal (ASX: WHC).
UBS notes that PLS reported strong Septebmer quarter production and had in-line sales at good costs. The problem, as they see it, is that realised prices came in below expectations. The other wrinkle is that PLS is expensive and trades at a premium to its peers. Whilst UBS is bullish on lithium, they see better value alternatives and have a SELL rating on the stock with a 305c price target.
As for WHC, UBS has reinstated their coverage of the coal producer with a NEUTRAL rating and 1000c price target. UBS notes generational high coal prices continuing to create value but see coal price volatility through the northern hemisphere winter.
If you've enjoyed this edition, hit follow on this profile to know when we post new content and click the like button so we know what you enjoy reading.
If you have a chart and/or a stat that you would like to see featured in a future edition of the newsletter, drop us a note at content@livewiremarkets.com.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Welcome to Livewire, Australia’s most trusted source of investment insights and analysis.
To continue reading this wire and get unlimited access to Livewire, join for free now and become a more informed and confident investor.
Livewire and Market Index's pre-opening bell news and analysis wrap. Available weekday mornings and written by Chris Conway, Kerry Sun, and Hans Lee.
........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision, please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.
Never miss an update
Get the latest insights from me in your inbox when they’re published.
Please sign in to comment on this wire.