##{"id":95692,"date":"2021-08-10T09:05:51","date_gmt":"2021-08-09T23:05:51","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=95692"},"modified":"2021-08-10T10:16:15","modified_gmt":"2021-08-10T00:16:15","slug":"the-overnight-report-no-denying","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/08\/10\/the-overnight-report-no-denying\/","title":{"rendered":"The Overnight Report: No Denying"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Jun)<\/strong><\/span><\/td>\n7463.00<\/strong><\/span><\/td>\n+ 25.00<\/strong><\/span><\/td>\n0.34%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n7538.40<\/strong><\/span><\/td>\n0.00<\/strong><\/span><\/td>\n0.00%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n4432.35<\/strong><\/span><\/td>\n– 4.17<\/strong><\/span><\/td>\n– 0.09%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n14860.18<\/strong><\/span><\/td>\n+ 24.42<\/strong><\/span><\/td>\n0.16%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n35101.85<\/strong><\/span><\/td>\n– 106.66<\/strong><\/span><\/td>\n– 0.30%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n16.72<\/strong><\/span><\/td>\n+ 0.57<\/strong><\/span><\/td>\n3.53%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.32<\/strong><\/span><\/td>\n+ 0.03<\/strong><\/span><\/td>\n2.09%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n92.97<\/strong><\/span><\/td>\n+ 0.17<\/strong><\/span><\/td>\n0.18%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7132.30<\/strong><\/span><\/td>\n+ 9.35<\/strong><\/span><\/td>\n0.13%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n15745.41<\/strong><\/span><\/td>\n– 16.04<\/strong><\/span><\/td>\n– 0.10%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Splitting the Difference<\/u><\/p>\n

No, that's not a typo. The ASX200 did close completely unch yesterday, down to two decimal points. But not before jumping 30 points in the first hour, just as the futures had ambitiously suggested on a new high for the Dow, despite other influences.<\/p>\n

Those other influences included falls in commodity prices, particularly a big fall in the gold price. That fall saw three of the top five index losers on the day being gold miners, and the materials sector down -1.1%, with energy down -0.7%.<\/p>\n

Selling continues in the big miners as well on the iron ore price correction.<\/p>\n

The offset were financials (+1.3%). The major banks all rose around 1%, with Westpac ((WBC)) selling its life insurance business and National Bank ((NAB)) acquiring Citigroup's local consumer banking business, but the driving force was indeed insurance companies.<\/p>\n

Suncorp reported earnings, and a buyback, and a solid dividend, and a special dividend, and jumped 7.8%. Suncorp topped the index and in sympathy, Insurance Australia Group ((IAG)) took silver with 4.6% and QBE Insurance ((QBE)) took bronze with 3.2%.<\/p>\n

Interestingly, it was talk of buybacks after News Corp's ((NWS)) result release last week that had that stock also up 7.8% on its result. Yesterday News fell -8.0% to be the worst index performer. Analysts were less effusive than the market may have expected.<\/p>\n

Financials received little help from healthcare, which closed flat despite a drop in the Aussie, leaving only utilities (+0.4%) and property (+0.2%) to provide some support against falls in all other sectors.<\/p>\n

Transurban's ((TCL)) earnings result had that stock down -2.0% and industrials down -0.8%. Consumer discretionary also fell -0.8% with no sign of any delta let-up in Sydney.<\/p>\n

Telstra ((TLS)), which reports on Thursday, managed a 0.5% gain despite the ACCC warning it was "going in hard" on suing telcos for misleading customers over NBN internet speeds. Telstra announced its health division had acquired a GP software company. The telco sector fell -0.3%.<\/p>\n

Telstra has a health division?<\/p>\n

The early jump had the ASX200 into more rarefied air at a new intraday high and undeterred, the futures are suggesting another go today, closing up 25 points despite a flat session on Wall Street, another big fall for gold, another big fall for oil prices, and weakness across the board in base metals.<\/p>\n

Again, seemingly ambitious.<\/p>\n

Not So Sure<\/u><\/p>\n

The US daily case count hit 100,000 on Monday for the first time in six months, except this time it's delta.<\/p>\n

Moderna rose 17% on announced vaccine provisional approvals in Australia and Switzerland. Moderna is up 3500% in two years.<\/p>\n

The delta spread has led to the cancellation of Jazz Week in New Orleans, and the New York Auto Show, despite New York not being one of the delta hotspots.<\/p>\n

Having jumped on Friday night on the July jobs report, prime reopening stocks such as those in travel\/leisure fell back last night.<\/p>\n

Energy and materials had weak sessions, on aforementioned commodity price falls. While delta poses a threat to commodity demand worldwide, rolling lockdowns in China are the major concern.<\/p>\n

Goldman Sachs has cut its September quarter GDP growth forecast for China to 2.3% from 5.8%.<\/p>\n

The long-awaited bipartisan infrastructure bill is expected to pass through Congress in the next couple of days, after last Friday was previously touted. The final stumbling block was, of all things, regulations to prevent cryptos being used for tax evasion. After much criticism, those regulations have been watered down.<\/p>\n

Bitcoin rose 4% last night and having spent time consolidating around the US$30,000 mark, is now back at US$46,000, just as gold has lost around -US100\/oz in a couple of sessions.<\/p>\n

Trump has been trying very hard to get Republican senators to vote against the infrastructure bill, despite infrastructure spending being a Republican policy, and Trump having campaigned on such, while in four years never doing anything about it.<\/p>\n

After the bell last night the Boston Fed president Eric Rosengren joined a growing chorus among colleagues in suggesting the FOMC should flag tapering at its September meeting, and begin in the fall (which starts September 22 in the US).<\/p>\n

Rosengren is not a voting member.<\/p>\n

Commodities<\/u><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1729.60<\/strong><\/span><\/td>\n– 33.50<\/strong><\/span><\/td>\n– 1.90%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n23.43<\/strong><\/span><\/td>\n– 1.04<\/strong><\/span><\/td>\n– 4.25%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n4.22<\/strong><\/span><\/td>\n– 0.09<\/strong><\/span><\/td>\n– 2.13%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n1.16<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 1.13%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n1.05<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 1.35%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n8.56<\/strong><\/span><\/td>\n– 0.19<\/strong><\/span><\/td>\n– 2.14%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.34<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 1.07%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n66.48<\/strong><\/span><\/td>\n– 1.80<\/strong><\/span><\/td>\n– 2.64%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n69.21<\/strong><\/span><\/td>\n– 1.49<\/strong><\/span><\/td>\n– 2.11%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t)<\/strong><\/span><\/td>\n171.20<\/strong><\/span><\/td>\n0.00<\/strong><\/span><\/td>\n0.00%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The table tells the story. Iron ore is nevertheless unchanged.<\/p>\n

The US dollar was up another 0.2% and hence the Aussie is down another -0.3% at US$0.7336.<\/p>\n

Today<\/u><\/p>\n

The SPI Overnight closed up 25 points or 0.3%.<\/p>\n

The NAB business confidence survey for July is due today.<\/p>\n

Challenger ((CGF)), Computershare ((CPU)) and James Hardie ((JHX)) are among those companies reporting today.<\/p>\n

The Australian share market over the past thirty days<\/strong><\/p>\n

<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
ARB<\/td>\nARB<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
BLD<\/td>\nBoral<\/td>\nDowngrade to Neutral from Buy<\/td>\nUBS<\/td>\n<\/tr>\n
CIP<\/td>\nCenturia Industrial REIT<\/td>\nDowngrade to Accumulate from Buy<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
CSR<\/td>\nCSR<\/td>\nUpgrade to Buy from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
DEL<\/td>\nDelorean<\/td>\nUpgrade to Add from Hold<\/td>\nMorgans<\/td>\n<\/tr>\n
FLT<\/td>\nFlight Centre Travel<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
LNK<\/td>\nLink Administration<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
OML<\/td>\noOh!Media<\/td>\nDowngrade to Neutral from Outperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
PNI<\/td>\nPinnacle Investment Management<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
RMD<\/td>\nResMed<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
RWC<\/td>\nReliance Worldwide<\/td>\nUpgrade to Buy from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
SGM<\/td>\nSims<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker CallReport<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

Allovernight and intraday prices, average prices,currency conversions and charts for stock indices,currencies, commodities, bonds, VIX and more available on the FNArena website. Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.<\/em><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com<\/em><\/p>\n

FNArenais proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

After value outshone growth on Friday night’s jobs report, a modest reversal was the case last night as delta reality begins to sink in. Dow down -106. (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":8,"featured_media":95698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/95692"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=95692"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/95692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/95698"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=95692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=95692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=95692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}