ASX 200 futures flat, Nvidia tops Microsoft as world's most valuable company

ASX 200 futures are trading 6 points lower, down 0.07% as of 8:30 am AEST.

S&P 500 SESSION CHART

OVERNIGHT MARKETS

• US markets finished higher, with the S&P 500 logging its 31st record high of the year
• Megacap tech stocks traded mostly lower but Nvidia (+3.5%) has now overtaken Microsoft as the world’s most valuable company
• Bond yields lower after weaker-than-expected US retail sales data offered more support for a September rate cut but stoked weakening growth concerns
• Brent crude settled 1.1% higher, trading above US$85 for the first time since 1-May
• Another relatively uneventful session ahead of tomorrow’s US market holiday (Juneteenth National Independence Day)
• Citi joins Goldman and Evercore in upgrading S&P 500 year-end target (Bloomberg)
• Goldman Sachs sees inflection point for US labour market, says first-quarter inflation jump was likely an anomaly, sticks to two rate cut calls (Bloomberg)

BOFA FUND MANAGER SURVEY

• Latest Bank of America Global Fund manager survey showed investors most bullish since November 2021 but sentiment still not yet extreme
• Cash levels of 4.0% are the lowest since June 2021
• Investors are most overweight stocks and underweight bonds since November 2022
• Soft landing has become the consensus call and hard landing views hit new lows
• Magnificent 7 is among the most crowded trade on record at 69%
• On use of cash, 26% of companies should return capital to shareholders, the highest since April 2024, while 35% wanted to see increase capex

STOCKS

• Apple drops its 'buy now, pay later' service in US just months after rollout (FT)
• EV startup Fisker files for bankruptcy, aims to sell assets (WSJ)
• Berkshire Hathaway boosts stake in Occidental Petroleum to nearly 29% (Reuters)
• McDonald's to end test run of AI-powered drive-thru tech provided by IBM (AP)

CENTRAL BANKS

• BOJ Governor Ueda flags possibility of rate hike in July (Bloomberg)
• RBA on hold, does not rule out another hike as inflation risks to the upside (Bloomberg)
• BoK says pace of consumer inflation continues to slow and hints at rate cut by year end (Korea Times)
• Central banks expect global reserves of gold to increase over the next year as US dollar popularity wanes (FT)

GEOPOLITICS

• Putin vows to support North Korea against United states, plans to deepen trade and security ties (Reuters)
• US warns China it will defend the Philippines after latest seizure of Philippine boats (ABC)
• New intelligence raises US, Israeli concerns about Iranian nuclear program (Axios)
• China retaliates in tit-for-tat anti-dumping investigation into EU pork (Reuters)
• Le Pen's party says it needs absolute majority to govern France, says will be serious on finances to reassure markets (Bloomberg)

ECONOMY

• US retail sales tepid in May, up 0.1% month-on-month vs. 0.3% consensus (Reuters)
• Germany June ZEW economic sentiment posts first monthly decline since January (Bloomberg)
• New Zealand economy seen emerging from recession but with modest growth (Bloomberg)
  
  

ASX TODAY

• ASX 200 to open relatively flat despite a solid overnight lead
• Resource stocks bounced overnight, notably uranium, gold, copper and nickel
• Brambles readying offer for Loscam’s southeast Asia business (AFR)
• Fletcher Building to divest 50% of Fiji construction business for NZ$20m (FBU)
• Pacific Equity Partners mulls bid for New Zealand energy distributor Powerco (AFR)
• QBE Insurance to commence orderly closure of North America middle-market segment, restructuring charge of $100m before tax will be recorded in FY24 result, first-half FY24 GWPs up 3% YoY (QBE)

BROKER MOVES

• Abacus Storage King REIT initiated Neutral with $1.30 target (Jarden)
• Beach Energy downgraded to Neutral from Overweight; target cut to $1.55 from $1.75 (Jarden)
• Beach Energy downgraded to Neutral from Outperform; target cut to $1.55 from $1.95 (Macquarie)
• Charter Hall Social Infrastructure REIT upgraded to Neutral from Underweight; target cut to $2.75 from $3.05 (Jarden)
• Goodman Group downgraded to Overweight from Buy; target up to $37.60 from $30.50 (Jarden)
• GPT Group upgraded to Overweight from Underweight; target up to $4.85 from $4.70 (Jarden)
• Ingenia Communities downgraded to Overweight from Buy; target up to $5.50 from $5.45 (Jarden)
• Lifestyle Communities upgraded to Buy from Overweight; target cut to $15 from $17 (Jarden)
• Mirvac upgraded to Overweight from Neutral; target cut to $2.20 from $2.25 (Jarden)
• Scentre Group downgraded to Overweight from Buy; target up to $3.65 from $3.60 (Jarden)
• Stockland upgraded to Buy from Overweight; target up to $5.45 from $5.05 (Jarden)

KEY EVENTS

• Wed 19 June: Afp Pharmaceuticals (AFP) – $).01
• Thu 20 June: None
• Fri 21 June: CSR (CSR) – $0.12
• Mon 23 June: None
• Tue 24 June: None

• Dividends paid: McGrath (MEA) – $0.016
• Listing: None

• 9:50 am: Japan Balance of Trade (May)
• 4:00 pm: UK Inflation (May)