##{"id":99785,"date":"2022-02-22T09:09:11","date_gmt":"2022-02-21T22:09:11","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=99785"},"modified":"2022-02-22T10:00:51","modified_gmt":"2022-02-21T23:00:51","slug":"the-overnight-report-twist-in-the-tale","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2022\/02\/22\/the-overnight-report-twist-in-the-tale\/","title":{"rendered":"The Overnight Report: Twist In The Tale"},"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<\/strong><\/span><\/td>\n7089.00<\/strong><\/span><\/td>\n– 70.00<\/strong><\/span><\/td>\n– 0.98%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n7233.60<\/strong><\/span><\/td>\n+ 11.90<\/strong><\/span><\/td>\n0.16%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n4348.87<\/strong><\/span><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n13548.07<\/strong><\/span><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n34079.18<\/strong><\/span><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n27.75<\/strong><\/span><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.93<\/strong><\/span><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n96.14<\/strong><\/span><\/td>\n+ 0.10<\/strong><\/span><\/td>\n0.10%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7484.33<\/strong><\/span><\/td>\n– 29.29<\/strong><\/span><\/td>\n– 0.39%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n14731.12<\/strong><\/span><\/td>\n– 311.39<\/strong><\/span><\/td>\n– 2.07%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Ever-Changing Scene<\/u><\/p>\n

The local market again was forced yesterday to weigh the macro overlay against the micro impact of the day’s earnings releases as Biden’s “imminent” call sent Wall Street tumbling again on Friday night. For the past two weeks the 7200 level in the ASX200 has provided a baseline but that broke yesterday morning as the index fell -65 points.<\/p>\n

Then came the news that Putin had agreed to meet with Biden this week, and the mood changed. The market was more able to concentrate on the day’s results and the index was up 27 points inside the last hour.<\/p>\n

Alas, we will be back where we started today. Putin has officially “recognised” the independence of the two Russian separatist states inside Ukraine, where fighting has been underway since Russia took Crimea eight years ago. A reasonable solution to the problem, or further act of aggression? It didn’t help that in announcing the recognition, Putin declared that from an historical perspective, Ukraine had “no right” to exist as a sovereign nation.<\/p>\n

Suffice to say the West has denounced the move. We have no Wall Street impact to assess, but the German DAX was down -2% last night and our futures are down -70 points this morning. Oil prices have jumped 3% despite the increasing possibility the ban on Iranian exports may soon be lifted.<\/p>\n

I’m not qualified to contemplate what might come next, so let’s just review the day’s local corporate action.<\/p>\n

Earnings result winners on the day were led out by a2 Milk ((A2M)), up 11.1%, and Endeavour Group ((EDV)), up 10.3%. Infant formula, beer and pokies are all of course staples, so that sector gained 2.3%.<\/p>\n

The winning sector on the day was utilities, up 3.7% following Cannon-Brookes’ takeover offer for AGL Energy ((AGL)), which rose 10.6% to well above the offer price.<\/p>\n

If that was frustrating for Cannon-Brookes, his significant shareholding in Tyro Payments ((TYR)) didn’t do him any favours. That stock fell -26% on result.<\/p>\n

The other result losers on the day were Super Retail ((SUL)), down -9.5%, and Altium ((ALU)), down -5.9%. Super Retail had the discretionary sector down -0.9%.<\/p>\n

The telco sector rose 1.3% after Telstra ((TLS)) announced a deal with TPG Telecom ((TPG)), which was mutually positive for their share prices, and Kiwi telco Chorus ((CNU)) jumped 9.9% on result.<\/p>\n

The biggest losing sector was technology (-2.7%) following another weak session for the Nasdaq, and the fact that when uncertainty reigns, the first stocks to be jettisoned are the risky growth stocks.<\/p>\n

PointsBet Holdings ((PBH)) fell -11.1%, Block ((SQ2)) -6.8% and Zip Co ((Z1P)) -7.8%.<\/p>\n

It was a quieter day in other sectors, except for healthcare (-1.3%), which again reflected selling in CSL ((CSL)).<\/p>\n

Beneath a cloud of anxiety, the earnings season rolls on.<\/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>\n1903.20<\/strong><\/span><\/td>\n+ 4.00<\/strong><\/span><\/td>\n0.21%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n23.91<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.04%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n4.51<\/strong><\/span><\/td>\n– 0.04<\/strong><\/span><\/td>\n– 0.87%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n1.51<\/strong><\/span><\/td>\n+ 0.02<\/strong><\/span><\/td>\n1.13%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n1.06<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.77%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n11.21<\/strong><\/span><\/td>\n+ 0.11<\/strong><\/span><\/td>\n0.95%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.63<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.38%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n93.95<\/strong><\/span><\/td>\n+ 2.88<\/strong><\/span><\/td>\n3.16%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n96.27<\/strong><\/span><\/td>\n+ 2.73<\/strong><\/span><\/td>\n2.92%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t)<\/strong><\/span><\/td>\n139.00<\/strong><\/span><\/td>\n+ 5.50<\/strong><\/span><\/td>\n4.12%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

While no tank has crossed the border, talk is of Putin’s latest move to be sufficient to kick off the imposition of sanctions. That appears to be the assumption being made by oil traders, as energy export bans would play a significant part.<\/p>\n

The US has been in negotiations with Saudi Arabia to use its excess capacity – currently beholden to production quotas – to make up the shortfall of oil supply to Europe. If it agrees, then that presumably signals the end of OPEC-Plus.<\/p>\n

As has been discussed, Beijing’s interference in the iron ore market may result in a swift exit of speculators, but it does not take long for the physical demand\/supply balance to re-inform pricing.<\/p>\n

The Aussie is up 0.1% at US$0.7189.<\/p>\n

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

The SPI Overnight closed down -70 points or -1.1%.<\/p>\n

Today’s sizeable list of reporting companies includes ARB Corp ((ARB)), Cochlear ((COH)) and Coles ((COL)).<\/p>\n

Note that the daily list of companies going ex-dividend is also now beginning to grow steadily. Today’s list includes Wesfarmers ((WES)).<\/p>\n

For upcoming earnings result dates, and a summary of results to date, please refer to the<\/em> FNArena Corporate Results Monitor<\/a>.<\/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\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
BRG<\/td>\nBreville Group<\/td>\nUpgrade to Buy from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
CSL<\/td>\nCSL<\/td>\nUpgrade to Overweight from Equal-weight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nUpgrade to Accumulate from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
EDV<\/td>\nEndeavour Group<\/td>\nUpgrade to Neutral from Underperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
EVN<\/td>\nEvolution Mining<\/td>\nDowngrade to Underperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
FBU<\/td>\nFletcher Building<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
FMG<\/td>\nFortescue Metals<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
GMG<\/td>\nGoodman Group<\/td>\nDowngrade to Hold from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
GOZ<\/td>\nGrowthpoint Properties Australia<\/td>\nUpgrade to Outperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
MFG<\/td>\nMagellan Financial<\/td>\nDowngrade to Underperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Lighten from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
NEA<\/td>\nNearmap<\/td>\nUpgrade to Neutral from Underperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
NWL<\/td>\nNetwealth Group<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Accumulate from Buy<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
ORA<\/td>\nOrora<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
ORG<\/td>\nOrigin Energy<\/td>\nDowngrade to Neutral from Outperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Lighten from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
QBE<\/td>\nQBE Insurance<\/td>\nUpgrade to Buy from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
SIQ<\/td>\nSmartgroup Corp<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
TWE<\/td>\nTreasury Wine Estates<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
WES<\/td>\nWesfarmers<\/td>\nUpgrade to Neutral from Sell<\/td>\nCiti<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

All overnight 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

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

The geopolitical situation has taken a provocative turn, with the US closed for Washington’s birthday (symbolic?). (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":8,"featured_media":99789,"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\/99785"}],"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=99785"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/99785\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/99789"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=99785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=99785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=99785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}