ASX slipping, Wall St down as tough quarter ends

The losses were on the last day of the March quarter with all 11 of the S&The industrial groups of the P 500 lose ground. Financials fell the most, down 2.3 percent, followed by a 2 percent drop in communication services.

The VIX rose 9 percent to 21.06.

Bearish sentiment, expectations that share prices will fall in the next six months, fell 7.9 percentage points to 27.5 percent, according to a weekly survey by the American Association of Individual Investors.

Pessimism was last at its lowest on November 18, 2021 (27.2 percent), the AAII said. The drop in the latest week ends a streak of 18 consecutive weeks of readings above the historical average of 30.5 percent.

“Investors are expecting a positive earnings season … so the market is ignoring the recession, the yield curve,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“It’s the end of the month, the end of the quarter, so you may have to change your portfolio at the last moment. And of course the market will brace for tomorrow’s jobs data.”

the&It looks like the P 500 will climb to “new rally highs” in the second half of 2022, but before then it will probably go through a soft second quarter, according to JPMorgan Chase & Co.

the&P 500, however, broke through key resistance levels in the upper 4,500 to briefly trade above 4,600, JPMorgan said. The rally has moved into the upper end of what the bank believes is a tight multi-month trading range.

The index was trading at 4,582 around 1:30 pm in New York; it has risen about 4.8 percent over the past month.

“While the move is somewhat stronger than we anticipated, we still expect more range-bound price action in the coming weeks/months,” wrote JPMorgan strategists led by Jason Hunter, Alix Tepper Floman, Harsha Uppili and Marko Kolanovic, in a note to customers. “We think the rally is slowing and peaking not far from current levels.”

As the current range matures, JPMorgan expects the S&The P500 will have “at least one more medium-term push towards new recovery highs in the second half of 2022,” the strategists said. “Such a move would be consistent with the current cross-market setup and how the mid-to-late cycle dynamics have played out since 1980.”

today’s schedule

Local: House Prices for March at 10am AEDT, House Finance for February at 11.30am AEDT; NZ March ANZ Consumer Confidence at 8am AEDT

International Data: March Manufacturing PMI for China (Caixin), UK (Markit) and US (Markit, ISM); Euro zone preliminary CPI for March; US March Jobs Report

Market Highlights

ASX futures were down 42 points or 0.6 percent at 7,437 by 7 a.m. AEDT.

  • AUD -0.3% to 74.89 cents
  • Bitcoin on bitstamp.net -3% to $45,689.58 USD as of 7:15am AEDT
  • On Wall Street: Dow -1.6% S&P500 -1.6% Nasdaq -1.5%
  • In New York: BHP -1.1% Rio -0.1% Atlassian -2.9%
  • Tesla -1.5% Apple -1.6% Amazon -1.9%
  • In Europe: Stoxx 50 -1.4% FTSE -0.8% CAC -1.2% DAX -1.3%
  • Spot gold +0.5% to $1,943.14 an ounce at 2:58 p.m. New York time
  • Brent crude -5.4% to 107.29 dollars a barrel
  • US oil -6.8% to 100.48 dollars a barrel
  • Iron ore +US10¢ at $US158.30 per ton
  • 2-year yield: US 2.32% Australia 1.77%
  • 5-year yield: US 2.44% Australia 2.59%
  • 10-year yield: US 2.33% Australia 2.83% Germany 0.54%
  • Prices in the US at 4:15 pm in New York

From today’s financial review

Labor pledges $2.5 billion for elder care pay raises and better standards: An Albanian government will push and fund a wage increase for elderly care workers as part of a promise to raise standards of care.

Chanticleer: The Future Fund is on track for perpetuity: Future Fund Chairman Peter Costello says it would be “foolish” to liquidate Future Fund as long as its earnings are above the returns to be made on reducing government debt.

United States

Apple is exploring new suppliers for the memory chips used in its iPhones, including a possible first Chinese supplier, after a key Japanese partner had a production outage, Bloomberg reported.

Walgreens Boots kept its 2022 earnings forecast unchanged even as it beat estimates for second-quarter results, sending shares of the drugstore chain tumbling on fears of slower-than-expected growth for the rest of the year. .

British bank Barclays has raised the hourly minimum wage for its US employees to $20.50 from $17, months after a similar move by rival Bank of America. The new rate will vary by location based on cost of living and will benefit more than 900 employees.

Ascent Resources LLC, one of the largest private US natural gas producers, is preparing an initial public offering (IPO) that it hopes will give it a market valuation of around $6 billion, Reuters reported.

Europe

European stocks fell on Thursday, extending a quarterly loss that would be the first in two years, led by retail stocks after H&M’s profit was well below expectations.

Retail shares lost 5 percent to post their worst day in more than two years. H from Sweden&M slumped 12.9 percent after saying it would have to raise prices this year and reported weak quarterly profit amid soaring raw material and transportation costs.

The pan-European stock index fell 0.9 percent, following a global tone of risk aversion.

Data showed price growth hit multi-decade highs in many European countries in March, intensifying a policy dilemma for the European Central Bank.

The STOXX 600 is down about 6.5 percent in the January-March period after seven straight quarters of gains as investors remain cautious in the face of the Ukraine crisis.

For the month, however, the index posted its first monthly gain of 2022. Analysts attributed this in part to stocks appearing to be a better hedge against inflation than bonds.

Asia

Australia to sign interim FTA with India this weekend: All outstanding issues have been resolved for an interim agreement with a comprehensive economic cooperation agreement expected to follow in the coming months.

China stocks closed on Thursday after data showed activity in the country’s manufacturing and services sectors slipped into negative territory in March and raised concerns about the impact of new COVID-19 restrictions.

The top-tier CSI300 Index fell 0.7 percent to 4,222.60, while the Shanghai Composite Index lost 0.4 percent to 3,252.20.

The Hang Seng Index fell 1.1 percent to 21,996.85, while the China Business Index lost 1.1 percent to 7,525.89 points.

Activity in Chinese manufacturing and services contracted simultaneously in March for the first time since the height of the country’s COVID-19 outbreak in 2020.

The world’s second-largest economy is now at risk of a sharp slowdown as authorities restrict production and mobility in many cities, including Shanghai and Shenzhen, to quell new outbreaks of COVID-19.

“Until now, markets have underestimated the seriousness of the situation in China because it is difficult to fully reconcile and understand,” Nomura analysts said in a note. “In the coming months, we expect global investors to better reflect these shocks in their valuations of various asset classes.”

coins

US inflation continued to run at the fastest pace in 40 years in February, new data showed.

Prices, as measured by the personal consumption expenditures index, rose 6.4 percent in the year to February, the fastest rate of inflation since 1982 and faster than the 6.1 percent rise in the year to January.

Prices rose 5.4 percent after excluding food and fuel costs, which can be volatile, the data showed. That pace was also faster than the previous month’s reading, which was 5.2 percent.

The current rate of increase is much faster than the 2 percent annual inflation the Federal Reserve is targeting. While central bankers expect rapid inflation to cool off by the end of the year, falling to 4.3 per cent for the last three months of 2022, that rate of inflation would still be too rapid for comfort.

raw Materials

Biden establishes a million barrels per day oil release to control prices: The historic reduction underscores the White House’s concern over rising gasoline prices and supply shortages following the Russian invasion of Ukraine.

australian stock market

Rising commodities help ASX to stellar outperformance: Mining stocks’ dominance of the Australian stock market has helped it outperform the S&P500 during the first quarter for its largest margin in more than three years.

ASX snaps 7-day winning streak as tech and banks weigh: The&P/ASX 200 fell in the closing minutes of trading as energy and technology stocks weighed on the market, while all four major banks fell.

Magellan options plan could raise $1.2 billion: Magellan has outlined its strategy to retain staff with a new bonus scheme and has set itself a deadline of April 2027 to recover its shares above $35 for interested parties.

street talk

Rooster

Previous post Some seniors only have until April 1 to avoid a dreaded financial penalty | personal finance
Next post Nuclear power plant in northern Ukraine illustrates the dangers of war
%d bloggers like this: