ASX 200 to slip, S&P 500 lower on Nvidia weakness + Copper, gold stocks to fall

ASX 200 futures are trading 16 points lower, down -0.20% as of 8:20 am AEDT.

S&P 500 SESSION CHART

OVERNIGHT MARKETS

• Major US benchmarks were mixed in relatively uneventful Friday trading
• US weekly recap – Dow (+1.45%), Russell 2000 (+0.79%), S&P 500 (+0.61%), Nasdaq (+0.00%)
• Equal Weight S&P 500 outperformed the official index by 56 bps last week
• The big question – Is the rally beginning to rotate into other sectors outside of tech or is this the beginning of a broad-based sell off?
• AI frenzy drives record inflows into tech funds (Bloomberg)
• Tech investor trimming his Nvidia holdings after questioning earnings growth prospects (Bloomberg)
• Yen falls to 34-year lows, nears level that triggered suspected intervention in April (Bloomberg)

STOCKS

• American Airlines flight attendants moving closer to strike (Reuters)
• Gilead Sciences shares pop after its twice-per-year shot preventing HIV was 100% effective in a late-stage trial (CNBC)
• Hertz shares surge after upsizing bond offering to US$1bn (CNBC)
• Records show Tesla has reduced its workforce by just over 121,000 people this year, representing 14% of total (CNBC)

CENTRAL BANKS

• Richmond Fed's Barkin wants more conviction on inflation path before cutting rates (Bloomberg)
• Fed's Goolsbee sees Fed in position to cut rates if inflation continues to cool like it did last month (Bloomberg)
• BOJ deputy governor Uchida flags readiness to hike rates further (Reuters)

GEOPOLITICS

• China and EU reach agreement for talks on planned imposition of tariffs on Chinese-made EVs imported to Europe (Reuters)
• Yemen's Houthi fighters undeterred by US-led airstrikes, continue to threaten some of the world's most vital shipping routes (Washington Post)
• US-China resume semi-official nuclear arms talks in March for the first time in five years (Reuters)
• Canada preparing to follow EU on tariffs for China EV imports (Bloomberg)
• US adds Japan to currency manipulation watchlist, calls for more China transparency (Reuters)

ECONOMY

• US services PMI posted 55.1 in June vs. consensus 53.5, the highest reading since April 2022 (Reuters)
• US manufacturing PMI edged up to 51.7 vs. consensus 51.0, with selling price inflation easing amid slower growth in input costs (Reuters)
• Eurozone flash PMI for June weakens to three-month low (Bloomberg)
• UK retail sales recovered in May after weather-related impact dampened the April data (Reuters)
• Japan core inflation rebounds to 2.5% in May from 2.2% in April, backing case for BOJ rate hike (Bloomberg)
• Japan services PMI swings to contraction for first time since Aug-2022 (Reuters)
• South Korean export growth over first 20 days of June softens amid weaker demand from China (Bloomberg)
  
  

ASX TODAY

• ASX 200 set for a relatively softer start to the week
• Commodity prices sold off last Friday, led by declines from copper (-2.6%), gold (-1.6%), iron ore (-1.5%) and nickel (-0.7%)
• ASX 200 Financials Index finished last week up 2.0% – the banking sector's relentless rally continues to confused analysts, who view it as overvalued and fraught with significant risks. UBS analysts estimate the sector to be approximately 20% overvalued
• Anglo American preparing to launch sale process for portfolio of Australian coal mining assets, valuing them at approximately $7.5 billion (The Aus)
• Australian supermarkets could face multimillion-dollar fines under stricter grocery code for anti-competitive behaviour (Bloomberg)
• Bapcor expected to turn down offer from Bain as it seeks higher bid (The Aus)
• Cleanaway Waste in advanced talks to acquire Citywide Service Solutions' commercial waste division (AFR)
• IFM well-placed in race for Healius’ Lumus Imaging business (The Aus)
• Mitsubishi Motors discloses 5% interest in FleetPartners (FPR)
• Webjet provides further details on proposed demerger of Webjet B2C business (WEB)

BROKER MOVES

• Aristocrat Leisure resumed Buy; target increased to $56 from $44.20 (UBS)
• Evolution Mining downgraded to Neutral from Buy; target cut to $3.80 from $4.45 (UBS)
• Light & Wonder initiated Neutral with $162 target (UBS)
• Pilbara Minerals upgraded to Add from Hold; target cut to $3.70 from $4.10 (Morgans)
• ResMed downgraded to Neutral from Positive; target cut to $33 from $34 (E&P)
  
  

KEY EVENTS

• Mon 24 June: None
• Tue 25 June: None
• Wed 26 June: Fisher & Paykel (FPH) – $0.218
• Thu 27 June – REITs: HealthCo Healthcare and Wellness REIT (HCW) – $0.002, Centuria Industrial REIT (CIP) – $0.04, Centuria Office REIT (COF) – $0.03, Homeco Daily Needs REIT (HDN) – $0.021, Arena REIT (ARF) – $0.043, Charter Hall Long Wale REIT (CLW) – $0.065, Garda Property Group (GDF) – $0.016, Hotel Property Investments (HPI) – $0.095, Charter Hall (CHC) – $0.23, Charter Hall Social Infrastructure REIT (CQE) – $0.04, Waypoint REIT (WPR) – $0.041, GDI Property Group (GDI) – $0.025, National Storage (NSR) – $0.055, Goodman Group (GMG) – $0.15, Stockland (SGP) – $0.166, Growthpoint Properties (GOZ) – $0.097, Dexus Convenience Retail REIT (DXC) – $0.053, Dexus Industria REIT (DXI) – $0.041, Dexus (DXS) – $0.213
• Thu 27 June – Everything else: Rural Funds Group (RFF) – $0.029, Virgin Money (VUK) – $0.039, Mirvac Group (MGR) – $0.06, Region Group (RGN) – $0.07 

• Dividends paid: Cardno (CDD) – $0.10
• Listing: None
• Earnings: Metcash (MTS)
• AGMs: GUD Holdings (GUD)

No major economic announcements. 

This Morning Wrap was written by Kerry Sun.