Marcus Today Pre-Market Podcast – Thursday 27th October

• ASX 200 SPI Futures up 26. Resources to shine. ANZ in focus. MQG Results.
• US equities were mixed in Wednesday trading. S&P and Nasdaq both finished lower after rallying for a third straight session on Tuesday and finishing at best levels in over a month. The Nasdaq dropped 228.12 points, or 2.04%, to close at 10,970.99. The Dow Jones Industrial Average gained 2.37 points, roughly flat for the day and ending at 31,839.11. S&P 500 lost 0.74%, ending at 3,830.60.
• Metals, healthcare, payments, rails, autos, IBs, semi-cap equipment, casual diners, grocers, tobacco among best performers. Most groups held up despite megacap tech weakness.
• Advancing stocks outnumber declining ones by a roughly 2-to-1 margin in the NYSE Composite, according to FactSet. In the S&P 500, the split is nearly 60-40 with advancers in the lead.
• Meta results after hours saw losses again. Down 12% after hours. Meta Platforms beat estimates for quarterly revenue on Wednesday as its dominance of the online ad market helped it attract a steady stream of business from recession-wary companies.
• Meta revenue in the third quarter fell for a second straight time to $US27.71bn from $US29.01bn.
• Harley-Davidson shares rose 12.6% after the motorcycle manufacturer reported beating expectations before the bell.
• Spotify fell more than 8% after it reported a wider-than-expected Q3 loss.
• Treasuries were better. 10Y yields spent some time below 4% and 3m/10Y spread inverted.
• Dollar index down 1.1% after losing ~1% on Tuesday, now lowest in over a month. Gold finished up 0.7%. Bitcoin futures up 2.3%, nearing $21K. The price of bitcoin was trading above its 50-day moving average for a second day.
• WTI crude settled up 3%, just off best levels.
• S&P was lower on Alphabet and Microsoft selloff (which make up ~10% of S&P 500),
• Biggest bright spot seemed to be lower rate backdrop and weaker dollar. Terminal rate below 4.90% after pushing above 5% last week and dollar index at a three week low.
• BoC raised rates by 50 bp vs expectations for a 75 bp move. Is this the first central bank to pivot? The benchmark overnight lending rate by 0.5% to 3.75%, less than the 0.75% move expected by markets
• September US new home sales came in above consensus, though August was revised down.
• The US will release its third-quarter annualised GDP data on Thursday.
• Jerome Powell could hint next week that the central bank’s aggressive pace of tightening won’t continue indefinitely, according to Capital Economics’s Andrew Hunter.
• The Bank of England will lift its key rate by 0.75 percentage points next week, and also say it will shift to a slower pace of rate increases going forward, according to Pantheon Macroeconomics.
• Stoxx 50 +0.6% FTSE +0.6% CAC +0.4% DAX +1.1%
• Base metals rally hard as USD falls 1%.
• AUD up to 65c. Oil up 2.3%. Gold up 1%.

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