Marcus Today Market Updates

Breakfast Briefing - Thu 23 Dec

December 23, 2021 Marcus Today
Marcus Today Market Updates
Breakfast Briefing - Thu 23 Dec
Show Notes Transcript

US markets extend gains, putting the S&P 500 within shouting distance of its all-time high. SPI Futures are up 39 points and perhaps, just perhaps, the Santa Claus rally is on the way. At the very least, he seems to have taken over today’s Breakfast Briefing. 

  • ASX SPI 200 Futures up 39 points.
  • Dow Jones up 261 (0.74%) Nasdaq up 181 (1.18%)
  • Commodities better. Gold up 0.9%
  • Iron ore down slightly. Oil up 1.7%
  • Good US economic data helping a bounce back.


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Transcripts: https://otter.ai/u/x4YcC4ePv1mREQNC6NnQzTNaLd0

*PLEASE NOTE: Transcripts are autogenerated and may contain errors.

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SUMMARY KEYWORDS

PERCENT, NIGHT, PODCAST, BRIEFING, COMMODITIES, CLOSING, OMICRON, BID, VACCINE, AUSSIE DOLLAR, MARKET, JAPAN, POINTS, LISTENING, BOARD, BIT, GROUP, MOMENT, RALLY, BLOOMBERG

SPEAKERS

Henry Jennings

 

Henry Jennings  00:11

Good morning, and welcome to the markets today breakfast briefing. My name is Henry Jennings. It is December, the 23rd. And with all these briefings, that is general advice only, so please do your own research, contact your own financial advisor regarding any of the thoughts, ideas or insights in this briefing, if you need to compose the PowerPoint slide here, and read our disclaimer in full and if you're listening on a podcast, and head on over to our website, marcustoday.com.au. And you can read the disclaimer there. And you can also sign up for a free two week trial of Marcus Today on the website if you're not yet a member of our wonderful community. 

 

Henry Jennings  00:50

All right, well, some relief last night some good economic numbers coming out of the us some good news on Omicron. And the virus in the US at least, with some of the drug companies coming out with some some vaccine improvements. And also, we did see those stronger economic numbers and consumer confidence and house sales as well. The Dow Jones closing up 0.74% 261 points 35,754 Things are getting a little thinner. In markets around the world. Liquidity is drying up as people head home for the holidays. And that is certainly a factor at play at the moment. But it didn't stop the NASDAQ rising 1.18% 181 points 15,522. Not quite within sight of that 16,000 level. But heading that way, which is a good sign.

 

Henry Jennings  01:43

The S&P 500 in the middle for digital as usual at 1.02% to 4697. That's 47 points the good. And as you would expect in this environment where risk is back on the Santa rally as well and truly in place, he may have come late but at least he's coming as they say VIX index down 11.33% Down two points to 19 hardly a surprise. No one's gonna want to hold insurance over the long holiday period. But we have seen December as one of the most volatile December's that we have seen in the US. And it's usually a pretty quiet month as people gear up for Christmas. And we do get that Santa rally. But we have seen this year a very, very volatile month. 

 

Henry Jennings  02:28

And as a result of all this SPI futures showing a gain of 39 points or 0.54% Today, up to 7310. So hopefully we will see a continuation of the rally that we have seen in the last few days. And that would be a good sign 7310 39 points on the commodities front. We saw oil edging higher again not so great for inflation not so good. If you're out and about driving in the US or elsewhere, Brent crude at 1.7% $1.27 to 7547. We had WTI Texas, West Texas $1.64 or 2.31% 7276 there so expect some rises today in our energy stocks and gold surprisingly on a bit of a tear busting through that 1800 level which has been the top side. I suspect that we'll see a bit of downside coming on. I don't know if the gold price can hold it. There has been dithering around between 1750 and 1800 for some time, but at $15.77 or 0.88 of a percent to 1804 spot oh seven so good news there for the gold bugs. Just in time for Christmas. We just need some frankincense and some myrrh, whatever Myrrh is.

 

Henry Jennings  03:43

Iron ore, unfortunately, though, down around 1% dollar 20 To 120 to 60 but the Aussie dollar doing well 72 13.82% So that will negate to some extent the US gold price in terms of Aussie dollar that's for sure. As far as other commodities go last night we saw copper up 0.7 nickel at 1.5 aluminium up 2.1 zinc up 3.1% and lead up 1.1 unturn. pretty much unchanged there US and international mining stocks. Freeport McMoRan up 2.4% Alcoa having a really good night up 4.4%. Tech up 5.1% big rise for them. Anglo up 0.7 Glencore at 1.7 Vol 8.7 and Albemarle in the lithium space up half a percent.

 

Henry Jennings  04:36

In the US in ADR terms we had BHP and RIO both easing BHP down 0.8 and RIO down at 0.2 of a percent as far as the S&P 500 goes closing on its highs which is good to see certainly that centre rally in place for the last couple of days of 2021 before the goes into Christmas break. They are closed on Friday. We have a half day. Pretty much on Friday the market closes at 2:30pm.

 

Henry Jennings  05:11

Major stories last night Treasuries are fluctuate and Omicron. hospitalisation risk is far below delta into studies but it is still hitting highs UK saw 106,000 cases yesterday. So COVID restrictions still tightening, and it turns a busy season into a very, very quiet season. Talking to a friend in London, the place is a ghost town. Israel says it will offer a fourth. This is for COVID vaccine shots, the citizens 60 and over and other at risk groups have already done the third with the booster shot. Now they're looking at a fourth and Oxford University and AstraZeneca the latest to begin work on an Omicron specific COVID vaccine. 

 

Henry Jennings  05:55

Biden says he and mentioned we'll get something done on the build back better bill? Well, the problem always comes that if mentioned agrees than others may not. So everyone seems to be pushing their own agenda in the US in the Democrats and it still seems a very fractured party. And here we are a year since Joe Biden was elected and still no major stimulus programme has been brought in from him. Economists split on whether the RBA will scrap or taper QE in February and Bank of Japan board members say a positive impact on Japan's economy from a weak yen and Chinese property developers hit by record downgrades after Evergrande crisis and Japan has to spend billions and cut taxes to revive the chip industry.

 

Henry Jennings  06:40

And the UK, UK is closer to the economic conditions that is so pre COVID Despite that q3 downgrade as far as our markets go today, nothing very exciting happening at the moment anyway. No local economic news today. Announced mergers and acquisitions involving Australian companies surged fourfold from last year to nearly 400 billion US dollars in total deal value. 

 

Henry Jennings  07:08

Palladium is poised to be the worst performing major commodity of 2021. better days ahead, perhaps some analysts looking for a better environment in 2022. New South Wales is bringing back the QR codes are felt so lost without them. I'm so happy they're being brought back in. And Hamish Douglas has fired back in the NFL on the nasty divorce talk. And as issued a video update of where they are what's happening and the future for Magellan. So they're getting on the front foot, certainly with the PR at the moment. As far as mergers and acquisitions go huge number this year, as I said 400 Billion US and here there and everywhere. There'll be next on the agenda apparently according to the newspapers at least KKR may be interested in HT and a market cap of around 514 million they are radio stations primarily Kyle and Jackie O will give you the answer there to what they do. Call our group considering options. After Dye and Durham bid for link they bid 550 and the board fell over themselves to accept unanimously the $5.50 bid. Funnily enough Carlisle bid 560 last year, and the board rejected it so a year on they've taken 10 cents less well done board has done a great job. And Sarah has signed a binding offtake agreement with Tesla which surely will help their prospects.

 

Henry Jennings  07:08

Tesla was up last night, doing quite well and just looking for the Tesla's share price. Can't find it in our list of stocks. But it was up last night on the back of Elon Musk saying he disposed of enough shares to reach a target of reducing his stake in the carmaker by 10%. The Sydney Morning Herald has about 1.5% Apple at 1.2% Amazon at 0.7 and alphabet 1.7 US banks slightly higher JP Morgan, up 0.4 of a percent Citigroup 0.4 and Goldman's up 0.5 of a percent 10 year yield in the US 1.46 are creeping a little bit higher. Australia 1.57 hovering around that level seems to be bouncing around between 155 and 160. Germany -0.29% According to one Bloomberg survey of 700 fund managers and uses a Bloomberg the biggest risks for the market in 2022 are inflation. The Coronavirus and geopolitical tensions not adding a huge amount to the argument there. 

 

Henry Jennings  09:43

Question  the day to day I guess that goes to the same 700 persons survey that Bloomberg did what will be the biggest surprise in 2022. 

 

Henry Jennings  09:55

That's about it from me today. Thanks very much for listening. You can head on over to the Facebook discussion group with love to have your thoughts, ideas and insights there. It's a fantastic group members helping members is the motto over three and a half 1000 people on that group. And as you know, if you're listening to this on a podcast, we've split our podcast into four streams, you can listen to the Marcus Strategy podcast, headline podcast On The Desk podcast with Chris, Tom and Ben, and On The Couch with myself talking to fund managers and CEOs of interesting companies around the place. And of course, this podcast on the Breakfast Briefing and the End Of Day for the market update podcast. And we'd love to have you subscribe to those podcasts so you don't miss a thing. 

 

Henry Jennings  10:42

That's about it for me today. Thanks very much for listening. And as they say, in all the best places, ho, ho.