The Morning Market Report - 09 October 2024

Receive daily market insights gathered from overnight equity data, top stories, companies in the press and market information.

Good morning, 

Our team compiles this daily market report from global sources to highlight key market updates and what they mean for your investment portfolio. 

Overnight Market Highlights:

                 Major US benchmarks finished higher amid a broad-based rally(ex-Resources),                                  commodity prices sold off sharply after China's muted stimulus announcement.

Dow Jones                 S&P-500                    Nasdaq

 + 0.30%                   + 1.00%                   + 1.50% 

 ___________________                                 __________________                                     _________________

                              Australian shares advanced at the open following a sharp rally in consumer and                                  utilities stocks despite lingering disappointment with the latest Chinese effort to                                  boost its economy.

Stock of Note:

Wellnex Life                 Impact Minerals          

(ASX: WNX)                      (ASX: IPT)                    

0.018 AUD                      0.012 AUD                 

      0%                                    0%                      

 ___________________                                               __________________                                        

🇺🇸 US Market Overview:

🇦🇺  Australian Market Overview:

• The S&P/ASX 200 (XJO) finished 28.5 points lower at 8,176
• Resources (XJR) (-1.7%) and Energy (XEJ) (-0.95%) stocks declined, following hopes of further China stimulus diminishing off the back of a speech from Chinese National Development and Reform Commission (NDRC) chairman Zheng Shanjie.
• The market saw the likes of Iron Ore and Copper prices fall and a commodities sell off across the board.
• The big banks rallied slightly, helping to limit losses. Commonwealth Bank rose 0.2 per cent to $134.97, Westpac 0.4 per cent to $30.91, National Australia Bank 0.4 per cent to $37.27 and ANZ 0.4 per cent to $30.11.
• Australian consumer confidence has jumped amid hopes of earlier rate cuts following a statement from the RBA yesterday (MW)
  
  Sources: MW, MarketIndex;  AFR

📈  Global Commodities Update:

        Iron ore (Dalian): down 2.37% to US$111.15
        Brent crude: down US$3.75 or 4.6% to US$77.18
        Gold (spot): down US$22.81 or 0.86% to US$2,620
        Silver (spot): down 98 US cents or 3.1% to US$30.66
        Copper (LME): down 1.73% to US$9,758
        Nickel (LME): down 1.09% to US$17,760
        Uranium (spot): up 0.61% to US$84
        BHP: down 3.91% (US); down 4.47% (UK)
        Rio Tinto: down 4.28% (US); down 4.83% (UK)

• Crude oil shed more than 4 per cent, in part reflecting China’s more modest-than-expected stimulus plans. China is the world’s largest crude importer. Some of the sell-off also was linked to traders taking profits after oil surged from Iran’s attacks on Israel last week. Iron ore also plunged in Singapore trading, and US-listed shares of BHP and Rio tumbled.
• Gold followed silver lower as mentioned, extending losses to a three-week low as the market digested comments overnight from several Fed speakers…
• Aluminum and other base metals declined, and copper pulled back to a two-week low amid disappointment surrounding the lack of further China stimulus
• Seaborne iron ore prices fell after China returned from its Golden Week holidays and amid bearish demand expectations, with end-users putting off procurement activities to wait for clearer market directions.
• Asian metallurgical coal prices remained mostly rangebound amid mixed signals as the Chinese market reopened after the week-long Golden Week holiday, along with negative news around further stimulus.
• Platts assessed benchmark daily Australian alumina up $2/mt on the day at $572/mt FOB Oct.

Source: HotCopper, Platts, B* Resources

Source: MarketIndex

📣  H2X Wins AFR BOSS "Most Innovative Companies" Award

H2X Global Limited is proud to win the Property, Construction, and Transport category at the AFR BOSS "Most Innovative Companies" awards! 

This recognition reaffirms H2X's dedication to delivering sustainable, zero-emission transport through hydrogen-powered technology. As H2X scaled the production of their Warrego 4x4 and other hydrogen-electric vehicles, this award drives the company to continue pushing the limits of innovation.

The release of Australia's 2024 National Hydrogen Strategy, led by the Hon Chris Bowen MP, outlines a bold vision for the nation to become a global leader in hydrogen, particularly in reducing transport emissions.

📬  As Barclay Sees It

In recent years, passive investing has transformed the landscape of the global stock market. Investors have been flocking to index funds and exchange-traded funds (ETFs) due to their lower costs, broad diversification, and simplicity. This shift has led to a growing concentration of capital in passive strategies, leaving many to question the future of active managers. Are we approaching a tipping point where passive funds dominate to such an extent that active managers become obsolete, or is there still a place for active management in a market where passive investing controls the majority of assets? ABSI this week will explore the active passive balance in stock markets. 

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