ASX 200 to fall, US markets fall from record highs, Dow records worst day of 2024

OVERNIGHT MARKETS

• Dow falls 600 points in worst day of 2024 as Nvidia's earnings fail to lift broader market

• Europe stocks close slightly higher as investors assess data; tech jumps 1% after Nvidia earnings

• Treasury yields climb on positive economy and labor data

• Oil prices fall for fourth session ahead of busy Memorial Day travel weekend

• Gold slips to over one-week low on hawkish Fed, US data

MARKETS

• Morgan Stanley tells investors to avoid hedge funds’ overcrowded trades, chair James Gorman to depart at the end of the year

• JPMorgan’s Jamie Dimon says can’t rule out ‘hard landing’ for the U.S., stagflation will be ‘worst outcome’

• Dow transportation stocks are ‘area of potential concern’ for stock-market bulls

• The stock market’s entire return rests on a surprisingly small number of days

The answer to the above is just 9 days! And given this is historically normal rather than abnormal, it's proof that it's time in (and not timing) the market which makes all the difference.

INTERNATIONAL STOCKS

• Tesla CEO Elon Musk says he favors ‘no tariffs’ on Chinese EVs

• Alibaba bets on AI to fuel cloud growth as it expands globally to catch up with U.S. tech giants

• Biggest US retailers cutting prices amid consumer fatigue from three years of elevated inflation

• DuPont to split into three companies, separate out electronics and water divisions

• Intuit raises full-year forecast, and says AI is helping

• BHP's $49B bid for Anglo American still faces South Africa hurdle

• South Korea unveils $19B package to boost domestic semiconductor industry

ECONOMY

• ECB says Eurozone negotiated wages rose 4.69% y/y in Q1 2024 versus 4.50% in Q4 2023

• Eurozone composite PMI at 12-month high, PMI shows slower UK expansion as services sector activity dips

• Japan flash manufacturing PMI returns to expansion but details relatively soft

• G-7 finance ministers sideline debt concerns amid rising fiscal challenges

CENTRAL BANKS

• ECB's Schnabel sees economic revival as rate cuts draw near

• Major banks push back BoE rate cut from June to August, with markets seeing only 25bps of easing in 2024

• Elevated services inflation supporting case for another BOJ rate hike

• RBNZ Governor Orr says will only hike rates again if inflation expectations get away

• BOK keeps rates on hold, notes upside inflation risks have increased