ASX 200 to rise, Dow Jones closes above 40,000 level for first time, Where investors are piling cash into

Get up to date on overnight market activity and the big events for the day.
The Morning Wrap

Livewire Markets

ASX 200 futures are up 35 points, or +0.44% as of 8:15am AEST.

It's set to be a quiet start to the week but you wouldn't know that looking at the price action. The Dow Jones Industrial Average closed above 40,000 for the first time ever last Friday - and sealed a five-week winning streak in the process. In fact, all time highs seem to be the norm for global equity markets over the last few years. Of the 20 largest stock markets in the world, 14 of them are at or near all-time highs.

It's not just stocks that people are piling into either. Corporate earnings are growing at their second-strongest quarterly pace in two years, leading the biggest investors to pile into corporate bonds.

But it's not a bubble, is it?

Let's dive in.


S&P 500 Session Chart

A buying flurry within the last two hours was enough to give the S&P 500 a small rise at the close. (Source: TradingView)
A buying flurry within the last two hours was enough to give the S&P 500 a small rise at the close. (Source: TradingView)
OVERNIGHT MARKETS
  • Dow closes at record high above 40,000 to cinch a five-week winning streak

  • European markets close slightly lower after snapping nine-day winning streak

  • Treasury yields rise as investors weigh state of the economy

  • Oil posts weekly gain on hopes of firmer demand

  • China stimulus, U.S. rate cut bets lift gold, silver soars above $30 mark

  • 14 of the world's 20 largest equity markets have hit recent record highs

  • Bond investors piling into high-grade corporates as potential Fed rate cuts edge closer

INTERNATIONAL STOCKS
  • Microsoft expected to showcase its AI projects at this week's Build developers' conference

  • Amazon closing in on a deal to stream regular-season and playoff NBA games

  • Corporate earnings seeing healthy growth, second-best pace over the past two years

ECONOMY
  • Soaring debt and deficits causing worry about threats to the economy and markets

  • Federal debt is generating elevated levels of worry for Wall Street

  • Executives in the consumer space warn of shoppers delaying big-ticket purchases

Key Events

Trading ex-dividend this week:

  • Amcor (AMC) - 21 May - $0.193

  • Aneka Tambang (ATM) - 21 May -$0.048

  • Orica Ltd (ORI) - 23 May - $0.19

  • Aristocrat (ALL) - 23 May - $0.36

  • Whitefield (WHF) - 24 May -$0.102

This Morning Wrap was written by Hans Lee and Chris Conway.

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies (“Livewire Contributors”). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

2 topics

The Morning Wrap
Markets Wrap
Livewire Markets

Livewire and Market Index's pre-opening bell news and analysis wrap. Available weekday mornings and written by Kerry Sun.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment