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Chapter 1: What is the main topic discussed in this episode?
A listener production.
US stocks recover after Friday's large drop. The ASX set to open higher. It's ahead of a big week that includes a certain IPO and key economic data from the US and Europe. Hello, good morning. I'm James Gruber.
Chapter 2: What recent events influenced US stock recovery?
It's Tuesday, the 9th of June. This is the morning edition of the CompSec Market Update. Well, some of us had a long weekend and a lot has happened over the three days. On Friday, US stocks and bonds tanked after a big pullback in tech shares, particularly semiconductor stocks.
Chapter 3: What is the outlook for the ASX following the long weekend?
The triggers seem to be the S&P's announcement that it wouldn't fast track listing standards, denying SpaceX and other imminent mega cap IPOs a prompt position in the benchmark gauge. Last night, markets steadied. after Iran and Israel halted attacks on each other following a personal appeal from Donald Trump.
Chapter 4: What economic data should investors watch this week?
It's all ahead of a huge week for markets, with SpaceX IPO-ing on Friday, the European Central Bank tipped to raise rates later in the week, and there's also a big inflation print from the US on Wednesday that will be closely watched. Let's take a deeper look at what's happened with Aussie futures, commodities and currencies. The ASX is poised to open higher with index futures up 0.3%.
Speaking of the ASX 200, on Friday it slid 0.7% to $8,625 after iron ore prices slumped to a three-month low and Asian technology stocks plummeted. On commodity markets, global oil prices paired gains that had lifted them more than 5% on Monday after Iran and Israel said they had halted attacks on each other. Brent crude futures settled 1.2% higher at US$94.25 a barrel.
Base metal prices were higher on Monday. Copper futures advanced 1.1%, buoyed by declining inventories in London Metal Exchange-approved warehouses. Meanwhile, aluminium futures were relatively flat, up 0.1%. Gold futures steadied as prospects for a potential Israel-Iran ceasefire helped the metal rebound from session lows. The futures settled flat at US$4,363 an ounce.
Meantime, iron ore futures declined for the fourth straight session on Monday as high portside inventories and compressed steel mill margins weighed on prices. The futures dipped 0.9% to US$101.5 a tonne. Let's take a look at currencies. They were mixed against the US dollar. The euro was up 0.1% to 1.1531 US dollars.
The Japanese yen was 0.1% lower at 160.21 yen and the Aussie dollar was flat at 70.46 US cents. Let's head to Wall Street. The Dow Jones Index finished down 0.2%, the S&P 500 was 0.3% higher, and the NASDAQ added 0.9%. A closer look at the trading day there. U.S. share markets rose on Monday, led by gains in the NASDAQ and chipmakers, as investors sought bargains after Friday's sharp sell-off.
Investors also were relieved by signs of cooling tensions in the Middle East. Iran and Israel said they'd halted attacks on each other, as I'd mentioned. S&P 500 technology-led gains among sectors increasing 1.5%, while the semiconductor index advanced 5.6%, rebranding from Friday's losses that wiped out US$1 trillion in market value for US-listed chipmakers.
Intel shares jumped 11% after reports that Alphabet's Google had placed an order to manufacture more than 3 million Tensor processing units in 2028. Among other movers, Marvel Technology jumped almost 10% with the chip makers set to join the benchmark S&P 500 before the start of trading on June 22.
Eli Lilly advanced 1.6% after the drugmaker's trial results showed its next-generation obesity drug, retatrutide, curbed sleep apnea severity in addition to boosting weight loss and helping knee pain. It'll be interesting to see if the Eli Lilly news has any impact on Australia's sleep apnea device company ResMed today. Apple lost 1.9% after underwhelming investors with its AI updates. U.S.
government bond yields were mixed on Monday, with two-year yields pulling back from a 12-month high reached on Friday after a stronger-than-expected jobs report bolstered bets that the Federal Reserve will raise interest rates later this year. The U.S. 10-year Treasury yield was up 1.0% to 4.55%, while the U.S. 2-year Treasury yield was down 1.0% to 4.16%.
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