US equities finished modestly lower on Monday as investors await key economic data this week.
United States
The S&P500 was -0.38% lower on Monday, along with the Dow Jones -0.16%, Nasdaq Composite -0.13% while the small-cap Russell 2000 was 0.61% higher. As investors await key data later this week including GDP and PCE inflation, earnings season is drawing to a close. So far, 453 of the S&P500 companies have reported, with 76.5% beating earnings estimates by an average of 7.57%, and overall reporting has been positive. Traders will now look to the latest durable goods order for January and consumer confidence for February due to be released overnight on Tuesday.
Europe
European equities pulled back from record highs on Monday with the Euro Stoxx 600 -0.37% lower along with the CAC -0.46% and FTSE100 -0.29% while the DAX was up just 0.02%. According to a survey by Bloomberg, analysts see little or no upside for the Euro Stoxx 600 by the end of 2024, with the index already above the average year end target which sits at 485 compared to 495 currently. Tonight will be light in terms of economic data, with only Germany’s consumer confidence for March the only notable release.
Australia
The ASX200 is expected to open flat this morning with ASX200 futures down just -3 points or -0.04% to 7,608. The index edged up 0.12% on Monday with a 0.61% gain in financials offsetting a -2.12% fall in energy and -0.37% decline for materials. In focus today as several earnings reports including Altium, Coles, and Woodside Energy. Kogan.com was a notable performer on Monday, climbing 23.7% after reinstating its dividend as it returned to profitability for the December half. Furniture group Adairs was also a high flyer, up 15% after EBITDA for the first half came in at $59.6m, above expectations. Elsewhere, Suncorp climbed 3.6% after reporting a 16% increase in insurance premiums, linked to price rises across the industry.
Commodities
Oil prices rebounded overnight with both WTI and Brent crude up 1.58% and 1.27% respectively, this follows falls of over -2% on Friday. Iron ore futures in Singapore sank -3.84% on Monday and are down a further -1.15% this morning at US$114 with copper also -1.6% lower. Gold edged -0.16% lower to US$2,032 an oz, with silver down -1.82% to US$22.53 while Bitcoin rallied 5.13% to US$54,426.
Economic Calendar
27th February 2024
German Consumer Confidence (MoM Mar) 18:00
US Durable Goods Orders (MoM Jan) 00:30
US Consumer Confidence (MoM Feb) 02:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
