ASX will fall, technicians reinforce the Nasdaq
“There is more fear of running out (FOMO) than fear of losing money here right now and tech stocks have a lot of FOMO,” Dennis Dick, a trader owner of Bright Trading, told Reuters.
With the&P 500 up nearly 14% at the end of the first half of 2021, activity in some areas of the market indicates concerns about potential volatility, with some investors suggesting the market may be late for a significant pullback.
Iron ore prices rose 1% on Monday to US $ 218.62 per tonne, according to Fastmarkets MB, supported by steadily declining port stocks of the steel ingredient in China.
Imported iron ore stored in Chinese ports fell for a fourth consecutive week to 123.95 million tonnes on Friday, reaching the lowest level since early October, according to data from consultancy SteelHome.
In its latest quarterly review, the Ministry of Industry, Science, Energy and Resources sees iron ore prices drop as 2021 progresses, reducing export earnings as well. It predicts that exports will reach $ 149 billion in FY2021, then decline to $ 137 billion in FY2022 and $ 113 billion in 2022-23.
“The 62% average spot price of iron ore fines at Chinese ports in May is up 37% since the start of 2021 and about 120% since the end of May 2020.”
As for the outlook: “Prices are expected to average around US $ 150 per tonne in 2021, before falling below US $ 100 per tonne by the end of 2022, as Brazilian supply picks up and that Chinese steel production is slowing down.
No local data
Overseas data: consumer, economic and industrial confidence in the euro zone June; US FHFA, S house prices&Housing prices P CoreLogic CS April, consumer confidence index June
ASX futures down 16 points or 0.2% to 7189 around 4:50 am AEST
- AUD -0.3% to 75.66 US cents
- Bitcoin on bitstamp.net + 4.9% to US $ 34,345.60 at 5 a.m. AEST
- On Wall St around 3 p.m.: Dow -0.6% S&P500 + 0.1% Nasdaq + 0.9%
- In New York: BHP -0.8% Rio -0.5% Atlassian -0.5%
- Tesla + 2.4% Facebook + 1.9% Apple + 1.6% Microsoft + 1.2%
- In Europe: Stoxx 50 -0.8% FTSE -0.9% CAC -1% DAX -0.3%
- Spot gold -0.2% at US $ 1,778.77 / oz at 3 p.m. New York time
- Brent -2.2% to US $ 74.54 per barrel
- US oil -1.7% to US $ 72.79 per barrel
- Iron ore + 1% to US $ 218.62 per tonne
- 2-year yield: US 0.25% Australia 0.6%
- 5-year yield: United States 0.89% Australia 0.85%
- 10-year yield: US 1.48% Australia 1.58% Germany -0.19%
- US price from 3 p.m. in New York
From today’s financial review
Perth plunged into instant lockdown with miners urged to stay home: mining industry told to keep workers on site or at home as Washington state government prepares to curb the spread of the delta variant by locking Perth until at least Saturday.
For more information on the financial review of the country’s fight against COVID-19, click here.
Frydenberg’s tale of the future is a whitewash: With an election looming, no one in government wants a real debate on tough things like spending priorities, who should pay necessary taxes, or structural reform.
The skills crisis is pushing tech wages up by a third: Workers with skills in security, data and cloud are 30% more expensive today than they were a year ago.
The big banks are weighing how to return excess capital: The counters of the big banks must determine how they will return nearly $ 40 billion of excess capital to shareholders.
The White House is working on an antitrust executive order that aims to push government agencies to think about the impact of their decisions on competition in an industry, according to two sources familiar with the matter.
The decision to issue such an order comes as House lawmakers move forward with sweeping antitrust legislation aimed at curtailing the power of big tech companies like Facebook, Alphabet’s Google, Amazon and Apple and avoiding consolidation of companies.
United Airlines to place an order for potentially $ 30 billion worth of planes at catalog values for up to 270 narrow-body planes in a bid to secure a pandemic recovery at favorable prices industry sources said.
The order could include up to 200 Boeing 737 MAXs and some 70 Airbus A321neos that compete with the top of the MAX family for single-aisle journeys requiring the most range.
JPMorgan as has acquired a 40% stake in Brazilian digital bank C6 Bank, the companies said, marking the US bank’s retail debut in Latin America’s largest economy.
Cybersecurity firm SentinelOne Inc, backed by billionaire investor Daniel Loeb’s hedge fund, Third Point, has raised the price range of its IPO and is now looking to raise around $ 1.02 billion, according to a file. regulatory.
European stocks ended lower on Monday, with travel stocks dragging losses amid concerns over bans on British tourists, while an increase in Asian COVID-19 infections hit crude prices and stocks energy have dropped.
The pan-European STOXX 600 finished down 0.6%, with the travel and leisure index down 4.4% to a one-month low.
The Times reported that Germany is considering banning British travelers from traveling to the European Union, regardless of their vaccination status, due to the highly contagious and widespread Delta variant of the coronavirus.
Hong Kong also announced a ban on all passenger flights from the UK, starting this week, due to similar concerns.
International Consolidated Airlines, Easyjet, Wizz Air and Ryanair fell between 4% and 6%.
“Despite a number of popular tourist spots currently on offer to British holidaymakers thanks to the government’s updated green list, it is precarious and it won’t mean much if Germany is successful and British tourists are banned from going there. entry into the set. the EU because of concerns about the Delta variant, ”said Danni Hewson, financial analyst at AJ Bell.
The German DAX index ended down 0.3%, while blue-chip UK stocks lost 0.9%.
Shares of the Burberry group fell 8.7% to the low of the STOXX 600 as CEO Marco Gobbetti resigned to take charge of Italian luxury group Salvatore Ferragamo. Ferragamo shares fell 2.7%.
China’s blue chip index ended higher on Monday, supported by technology gains, with investors hoping for continued political support.
The blue-chip CSI300 index rose 0.2%, to 5251.76, while the Shanghai Composite Index was unchanged at 3606.37.
Major financials slump, CSI300 financial index closing 1.6%, breaking four-day winning streak
Tech stocks outperformed Monday. The board of directors of tech-savvy start-ups in Shenzhen rose 1.9%, and the technology-focused Shanghai STAR50 index climbed 1.8%.
Beijing will not change or may even step up its support for the country’s tech sector, which is the biggest good news for related stocks in the A-share market, brokerage firm Orient Securities said in a report.
In Hong Kong, the Hang Seng Index closed 19.92 points or 0.1% lower at 29,268.30. The Hang Seng China Enterprises Index fell 0.1% to 10,863.57.
Germany’s Jens Weidmann and Austria’s Robert Holzmann became the first ECB rate regulators to openly debate the prospect of ending its $ 1.85 trillion pandemic emergency purchase program. euros (PEPP) as the economy improves. The two central bank governors are outspoken “hawks” who favor tighter monetary policy to control inflation.
“In my opinion, (2022) would no longer be a year of crisis if the assumptions about the evolution of the pandemic and the expectations regarding its economic effects were essentially confirmed,” Weidmann said via video link during a German banking event .
“So that you don’t have to end PEPP all at once … the net purchases could be reduced over time in advance.”
Holzmann echoed market expectations that the PEPP will end as soon as possible, in March 2022.
“We don’t know yet, but at the moment it looks like the end is in March,” he said at a UBS virtual event.
Here is a PDF of the latest economic outlook from the Ministry of Industry, Science, Energy and Resources:
The Swiss National Bank “is nowhere close” to starting a normalization of its expansionary monetary policy based on the world’s lowest interest rates and exchange rate interventions, said Andrea Maechler, member of the board of directors .
The central bank has not started to shrink its vast balance sheet, Maechler told a UBS economic event, adding that the SNB has no fixed sequence of actions to take when it finally decides to change course. .
Iron ore is fueling $ 310 billion mining export boom: Resource revenues are expected to increase in 2021-2022, contrary to forecasts from three months ago.
Here is a PDF of the latest view of the iron ore sector from the Ministry of Industry, Science, Energy and Resources:
The recovery of the coal sector seeks a labor shortage: more workers should be needed as coal prices recover from recent lows, but the industry must grapple with iron ore – and even the construction sector.
Australian equity market
ASX ends little changed as travel stocks punished by lockdown: Australian stocks changed little on Monday as new cases of COVID-19 and increased restrictions across the country weighed heavily on travel stocks.
Temple & Webster shine in lockdown return: ASX was flat on Monday but Temple & Webster retaliated with a 10% rally. Redbubble, Kogan and Endeavor, owner Dan Murphy, were also in the lead.