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SUMMARY KEYWORDS
BHP, NIGHT, BIG, AUSSIE DOLLAR, PODCAST, HIGHER, BOUNCING, JEROME, BRIEFING, SHAREHOLDERS, OPTIMISM, MARKET, PRICE, BULLISHNESS, TAMPING, HEAD, S&P, BIDEN, MARCUS, IMPORT DUTIES
SPEAKERS
Henry Jennings
Henry Jennings 00:12
Good morning and welcome to the Marcus Today Breakfast Briefing. My name is Henry Jennings, and it is Wednesday, the 12th of January. And as usual, with all the information contained in this briefing, it 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. And if you need to, you can always pause the PowerPoint slide here. read our disclaimer in full if you're listening on a podcast, then head on over to our website, www dot marcustoday.com.au. And you can read the disclaimer there. And if you're not yet a member of the markets today community we'd love to have you on board and you can sign up for a free 14 day trial on the website.
Henry Jennings 00:54
All right, well, a much better night in the USA triple crown for the US markets last night we had a synchronicity with the Dow Jones up 0.51% 183 points 36,252. The NASDAQ doing really well last night bouncing back strongly 1.41% Higher 211 points to 15,153. We also saw the s&p 500 up the middle for diddle 0.92% 43 points to 4713. So a good night all round. Jerome Powell soothing market with some of his comments about inflation talking about tamping down inflation rather than taking the big heavy baseball bat to inflation. So that certainly helps markets overnight. And that by the dip mentality well and truly entrenched in the US, and we've now seen NASDAQ rise. It was down 2.7% Yesterday at one stage is now rally at 4.1% of that low so not doing too bad at all. SPI futures in all this optimism and bullishness are 0.86 represents 63 points to 7356. So expect a pretty positive day to day and maybe a little bit more volume as well today. Coming through in our market we had the VIX index falling one point 5.36% to 18 which is a little bit off but it's only really what it made up the previous day.
Henry Jennings 02:29
In terms of commodities a big bounce in the oil price. Brent crude $3 nearly $3 Higher 3.55% $2.87 to 83.79 US dollars a barrel. So oil stocks should be doing pretty well today WTI also up nearly 4% $3.06 to 8112 so going like gangbusters at the moment that oil price as was the gold price as well. 1.3% better $23.92 1822 spot five zero and the iron ore price doing well up two and a half percent $3.15 to 128 60. We had copper at 1.58% nickel had a massive day last night nearly a 10 year high for nickel, up 3.1% aluminium at 1.4 zinc at 1.9 lead up 1.1 and 10 up 1.9% as well. So all doing very well as a result of all this optimism and bullishness we had Freeport McMoRan up 3.3% Alcoa at 1.1 Little bit muted there but it has been bouncing around quite a bit recently. Anglo down at 0.9 Glencore down 0.3 valet in the US was up 4% Albemarle which is the lithium big lithium play was up 5.8% And a WC in US prices was up 6.5% With BHP up 2.1 and Rio up 2.4%. So commodity stocks will be very much in demand today.
Henry Jennings 04:09
Countering that we did have the Aussie dollar slightly higher at 7210. But you would think with all these highs in commodity prices, and the iron ore price recovering quite nicely heading into Chinese New Year. That Aussie dollar has some room to move to the upside. But we will see I'm not a foreign exchange experts. But you would imagine that the Aussie dollar has a little bit of optimism going into reporting season as far as the S&P 500 goes last night here you can see it was on a steady climb throughout the day pretty much after Jerome Powell started talking about tamping and whacking it with a baseball bat. So
Henry Jennings 04:45
that was good news for the US market by the dip and confidence building as we head into reporting season in the US the banks were also relatively firm but very muted, I guess JP Morgan 0.1 Citigroup up 1.6 Wells Fargo at 1.3% last night and tech stocks doing well as you will see Apple at 1.7 Mater. The artist formerly known as Facebook at 1.9%. Microsoft 0.2 Amazon up 2.4% And Netflix up 0.2 of percent even block managed to rise 2.7% We had not really too much coming out of Jerome Powell and not much colour on the Federal Reserve's policy pivot, but growth stocks bouncing while venue and defensive pockets underperformed. And we did see some frustration with the LMA, which is the London metals exchange. They had a five hour outage, which did hamper activity. Economic data was limited to the NFIB small business optimism index, which increased in 98.9. It's more like a radio station in December from 98.4 in November. And Biden has defended his pandemic response amid Omicron surge.
Henry Jennings 06:06
In other news today Trump's nice six to cashin with fraud lawsuit, the ex President lawyer argues and Biden's spending bill is igniting debate over dairy methane pollution. And Russia holding tank drills near Ukraine sounds downbeat on talks. The US and Russia are course talking at the moment about those talks, highly unlikely that the US or NATO will give into the Russian demands, which are pretty outrageous. Given what's happened in the last couple of decades. They want NATO to wind back to where it was in terms of countries admitted back to the late 90s, which is not going to happen in a million years.
Henry Jennings 06:47
And Block, the artist formerly known as square, which is taking over Afterpay has confirmed non opposition of the Bank of Spain for the acquisition. And that now means that the scheme of implementation will go ahead without further ado, and the FDA has approved Cochlear Nucleus implants for unilateral hearing loss site single sided deafness. What's on today in heavy rain in Brazil, we talked about that yesterday has disrupted supply. Farley a major producer has suspended production and its mineral gas project. BHP and Rio both doing well last night 1.7 And REO up 2%. That's a little low compared to where they close BHP closing up 2.1 and Rio up 2.35% 10 year yields in the US 1.7 for Australia 1.89 just coming off the boil slightly Germany now nearly flat given that before I went away on my Christmas break. German rates were negative 0.32 and now they're pretty much zero so there has been quite a big move in rates in Europe as well. Nickel prices hitting a seven year high of 21,400 a tonne. And wham has upped its offer for PAF from one for 1.99 to one for 1.95 shares in PAF
Henry Jennings 08:10
Pendel Group PDL has said shareholders should reject the jewel listed Structure Plan one week until the vote Pendel has 1% of BHP and it is its biggest holding in its portfolios. And fast food operators are pulling chicken and warning of price pressures last night. Domino's in the US was warning of price pressures in their food side inflation. So it is coming to a fast food outlet near you may not be able to get that bucket of chicken. We did see that warning yesterday from Inghams as well. And the former chief of new X and X L is seeking 193 million in a court action on money that he missed out on and Morgan Stanley says that Afterpay is being beaten by Kleiner and a firm in gaining customers in the US and it looks like BlueScope Steel is paying import duties on steel. It complained about Asian jump dumping and has actually shot yourself in the foot as it ended up paying import duties on steel itself.
Henry Jennings 09:13
Question of the day to day this is I guess slightly contentious going into the vote next week. But should BHP collapse its dual listed company structure. Much has been written about this with the UK PLC side of things being effectively taken over buy BHP ASX Australian listed BHP in a one for one and BHP in PLC terms London terms has been trading at a big discount. So there is a theory that there is a big transfer of wealth from Australian shareholders to UK shareholders in this deal. So the vote next week should be HP collapse is Jewel listed company structure.
Henry Jennings 09:55
That's it for me today. Thanks very much for listening. If you're listening on a podcast, we are Get a member of Marcus Today you can head on over to our website, marcustoday.com.au. And if you are listening to this on a podcast we have three other wonderful streams to listen to Marcus Strategy podcast, the On The Desk podcast and the On The Couch podcast as well. So we'd love to have you subscribing to any or all of those podcasts for your daily updates, in some cases, not daily but weekly or bi weekly, but certainly much useful information in all those podcasts. But that's it for me today.
Henry Jennings 10:34
Thanks very much for listening and have a great session.