Morning report

Tech Saves the Day

US tech stocks made a dashing recovery as they reversed last week’s overall losses. European traders await inflation data and policy-setting meetings as the major indices traded lower. Asia moved higher while Australia and NZ were mixed.

Tech stocks lead the charge as Wall Street recovers from losses

Wall Street’s rally over the session recuperated some of the previous session's losses as tech stocks led the charge. In rate cut decisions, the Federal Reserve is set to meet tomorrow where it is expected to leave rates unchanged. The US 2-year treasury bond yield rose +2 bp to 4.75%, while the 10-year added +3 bp to 4.34%. The Nasdaq (+1.0%), Dow (+0.3%), and S&P 500 (+0.8%) all moved into the green. In stocks, Alphabet (Google) jumped +5.4% after a report that Apple may build Google’s Gemini AI into the iPhone. Tesla increased +6.0% after it announced an increase in the Model Y’s price in Europe. NVIDIA traded +0.5% higher as it kicks off its developer conference. Boeing lost -1.0% after a report revealed the company was subpoenaed in Seattle due to the 5 Jan malfunction. ​​​​​​​

Europe trades modestly lower ahead of key data and interest rate decision making

European and British stocks traded slightly lower ahead of Eurozone data and Central Bank policy-setting meetings. The Stoxx 600 (-0.1%) fell slightly, while the FTSE 100 (-0.0%) stayed relatively flat. Signify NV added +4.0% after Barclays upgraded its rating on the company. Logitech plummeted -7.0% after its CFO announced their departure later in the year. Disappointing financial targets in the coming years pushed Julius Baer down -1.1%. Marshalls plunged -6.5% as annual profit and revenue fell due to challenging market conditions. Currys increased +3.5% after it raised its profit guidance. British American Tobacco gained +1.3% after it began its buyback program after selling its stake in ITC. British Land Company added +2.2% after it formed a joint venture to better the delivery of 1 Triton Square.

Asia rallies after downside trading, Australia and New Zealand mixed

The previous session's widespread losses were reversed over the session as all Asian indices moved up. Japan’s Nikkei 225(+2.7%) led the charge, followed by China’s Shanghai Composite (+1.0%) and CSI 300 (+0.9%). Korea’s Kospi (+0.7%) and Hong Kong’s Hang Seng (+0.1%) made modest gains. The ASX 200 (+0.1%) attempted to gain back some of last week’s losses. The RBA is set to meet on Tuesday to decide on its policies. Fortescue’s target price was slashed by an investment bank, the stock lost -1.1%. Perpetual added +0.6% after an investment bank highlighted its potential as a takeover target. Paladin Energy and Boss Energy jumped +3.3% and +3.2% after a positive note on Uranium demand. HUB24 advanced +0.7% after a brokerage chose it and their rival Netwealth as the top choices of fund managers. The NZX 50 fell -0.3%.

WTI Crude and Gold up, Iron Ore down

WTI Crude jumped +1.7% to US$82.47/bbl, Gold increased +0.2% to US$2,158.84/oz, Iron Ore fell -0.8% to US$109.61/MT.


 

If you want to monitor price movements and follow key global indices, commodities and currencies on the go, the Forsyth Barr Investment Insights App is available for Apple and Android devices.

This morning summary has been provided by Forsyth Barr Ltd and is for general information purposes only - your financial situation or goals have not been taken into account. If you would like more information or advice that is specific to you, talk to your financial adviser.