Two ASX upgrades + our chart of the week – charts and caffeine
Welcome to Charts and Caffeine – Livewire’s pre-market news and analysis digest. We’ll take you through the session overnight and share our best ideas to better prepare you for the day of investing ahead.
- S&P 500 – 3,640 (-2.11%)
- NASDAQ-11,165 (-2.86%)
- CBOE VIX – 31.84
- USD INDEX – 112.12
- United States 10 years – 3.788%
- FTSE 100 – 6,882 (-1.77%)
- STOXX 600 – 382.90 (-1.67%)
- United Kingdom 10 years – 4.257%
- GOLD – US$1661/oz
- CRUDE WTI – US$81.62/barrel
Two key readings on inflation tonight in overseas markets. The first is the Eurozone CPI flash print (let’s be honest, it’s going to be lousy) and the US core PCE measure. The latter is the measure of inflation used by the Federal Reserve when planning how much to raise or lower interest rates. Economists expect it to rise month-on-month, but given that last month was just a 0.1% rise, it’s entirely possible that could be that too. a decrease.
Forget buying declining unprofitable tech stocks on the ASX! Try buying the drop in the Hang Seng Technology Index! Down more than 70% this year, though much of it is attributable to Beijing’s crackdown on big tech. I wonder if the National People’s Congress will see a change on that front.
CHART OF THE WEEK
So you think the US dollar doesn’t matter for your investments? Or are you considering investing in some US assets due to the strength of the US dollar? Consider what the strong DXY is actually doing to S&P 500 earnings profiles. And look even closer at who it affects the most – information technology, industrials, energy – the types of sectors investors move towards. Australians can look for an investment in the United States.
STOCKS TO MONITOR
I have the impression that all the brokers have gone on an extended vacation! Nonetheless, those who are still working have given us some assessment-centric upgrades to work with.
Charter Hall Long WALE REIT (ASX:CLW) gets a bump to buy neutral at Citi as its asset pool is seen as “too cheap”. That said, concerns about growth are still warranted despite CPI-linked rents.
Meanwhile, Ord Minnett finds selling 40%+ of Ramélius Resources (ASX: RMS)‘ since July to reflect margin pressures and a misperception of deliverability risk. It is now an accumulation instead of a hold.
3.3%: Household wealth fell slightly in the June quarter, but Australians are still among the wealthiest people in the world with an average of over $550,000. (Source: ABS)
Of course, this stat is cheeky because it’s the average. Take the median Australian household wealth figure, or even the average minus the wealth of the 250 richest Australians, and you might find something much more accurate and telling.
Hans Lee wrote today’s report. Chris Conway will write Monday’s report while Hans is on annual leave.
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