Marcus Today Pre-Market Podcast – Thursday 24th August

US markets ended sharply higher, ending just off best levels, their biggest gain in nearly two months fuelled by weak PMI data across both the US and Europe, bolstering expectations that central banks would halt interest rate hikes to avert a recession. The Dow Jones rose 184 points (+0.54%). Dow at best up 246 points. S&P 500 posted its first 1% gain since 30-Jun, up 1.10%, and the NASDAQ posted its best day since 28-Jul, up 1.59%. Big tech led the gains in anticipation of Nvidia’s results Apple +2.2%, Meta +2.3% and Nvidia 3.2% prior to results (+6.99% after-hours market post results). US PMI fell to 50.4 in August, missing expectations of 52, indicating a sluggish increase in output for US firms in August, with overall activity level nearing stagflation. US treasury yields slipped on weak PMI results, with the 10Y yield falling 13.2bps and the 2Y fell below the 5% threshold. USD Index fell 0.14% after hitting a two-month high, and VIX dropped 5.8%.

• ASX to rise at opening bell. SPI Futures up 36 points (+0.51%).
• Copper up 1.09% for a fifth straight session, helped by surprisingly upbeat copper consumption data in China.
• Nickel +2.27%, Aluminium flat, Zinc +1.89%, Lead +1.53%, Tin +0.15%.
• Brent and WTI oil fell 1.17% and 1.67% as demand woes stemming from a build in US gas stocks and weak manufacturing data globally outweigh optimism.
• 10Y yield: US 4.20%, Australia 4.19%, and Germany 2.51%.
• Gold up 0.91%, helped by a pullback in US bond yields.

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