ASX 200 to rise, CBA reports $2.4 billion cash profit for Q3, Citi downgrades Perpetual

S&P 500 SESSION CHART

OVERNIGHT MARKETS

• Dow pops more than 170 points to notch sixth positive day and longest win streak in 2024
• European markets close higher as investors react to more earnings; Sweden’s central bank cuts rates
• 10-year Treasury yield inches higher as investors weigh interest rate outlook
• US crude oil recovers losses after surprise stockpile decline
• Gold holds ground as investors await US data for rate-cut clues

INTERNATIONAL STOCKS

• KKR to buy Perpetual's corporate trust and wealth management units for US$1.4B ($2.175B)
• Airbnb expects a stronger summer quarter, spurred by Olympics, but shares fall
• Robinhood’s stock rallies as company swings to profit, drums up more business
• Shopify shares plunge 18% on weak guidance
• Affirm’s upbeat earnings reflect differentiated buy-now-pay-later approach
• AMC’s Q1 loss narrows and ‘better times are ahead’ says CEO Adam Aron
• Chinese iPhone shipments jumped ~12% in March after Apple slashed prices
• Amazon's cloud services breaks into Europe 5G networks with major Telefonica deal
• Boeing supplier Spirit AeroSystems' cash and inventory crisis continue to spiral

CENTRAL BANKS

• BOJ's Ueda in strongest signal yet, hints possible policy action if yen moves impact inflation
• Sweden's central bank enacts 25 bps hawkish rate cut, its first in eight years
• Markets fade chance of RBA rate hike this year, while rate cut calls undermined by strong inflation

ECONOMY

• Booming profits from corporate America may be enough to shield the US economy from a downturn
• Report finds US will triple domestic chip output capacity by 2033, fuelling industry growth
• Stock buybacks soaring to highest level since 2018 in sign corporate America is bullish on the US economy
• Asia Pacific to get big investment for data centre as AI boom goes into overdrive
• German industrial output drops by less than expected in March thanks to construction
• German economic institute expects economy to stagnate in 2024

ASX TODAY

• Commonwealth Bank (ASX: CBA) has handed down its Q3 trading update. The numbers are as follows:

• H1 Cash NPAT -3% to approximately $2.4 billion
• Net interest and operating incomes -1% quarter-over-quarter
• Operating performance -5% on the prior quarter due to a small rise in operating expenses (the Bank says it's due to staff costs and higher amortisation)
• CET1 Ratio of 11.9%

• News Corp (ASX: NWS) and REA Group (ASX: REA) report together, given the latter is owned by the former. Here are the key numbers:

  • NWS Q3 revenue -1% year-over-year to US$2.42 billion
  • NWS Net income -29% year-over-year to US$42 million
  • REA Q3 revenue +15% to US$256 million, could have been US$266 million (or 5% more) if it were not for negative currency fluctuations)
  • REA: Residential listing volumes +6% year-over-year, Sydney and Melbourne listings +20% and +18% respectively.

• And following news that American funds management giant KKR is going to buy Perpetual (ASX: PPT)'s trustee and advice businesses, Citi has downgraded Perpetual from buy to NEUTRAL with a new price target of $23.25 per share.