ASX 200 Futures Rise; S&P 500 Rebounds on Tech Strength; January's Historical Market Trends

2 min read | January 06, 2025 11:03 AM AEDT | By Team Kalkine Media

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ASX 200 Futures Rise; S&P 500 Rebounds on Tech Strength; January's Historical Market Trends — Image source: shutterstock

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Highlights

ASX 200 Futures Outlook: Futures indicate a 0.27% rise, setting the stage for the ASX 200 to open higher and potentially surpass key moving averages.

Global Market Performance: The S&P 500 ended a four-day losing streak, led by tech gains, while China's benchmark index faced a three-day decline, reflecting divergent market dynamics.

January Market Trends: Historical data reveals January as a typically positive month for equities, with the ASX 200 averaging a 0.68% rise over the past decade.

Major US indices closed higher, buoyed by strong performance in the technology and discretionary sectors. Key movers included Tesla (+8.2%), Nvidia (+4.4%), and Amazon (+1.8%). Despite this rally, sentiment remains cautious, with only 39% of S&P 500 companies showing gains since their earnings reports in late 2024.

S&P 500 Trends:

December 2024: Declined 2.5%, deviating from the historical average December gain of 1.3%.

Without the top seven mega-cap stocks, 2023 and 2024 price returns would have been significantly lower.

ASX 200 Today

ASX 200 futures suggest a 0.27% rise, positioning the index above critical moving averages, such as the 20- and 50-day levels. Historically, January has shown an average 0.68% gain for the ASX 200, with a 60% probability of positive returns over the past ten years.

Corporate Activity:

Limited announcements are expected until mid-January.

Ex-dividend trading includes Eumundi Group (ASX:EBG) and Qualitas Real Estate Income Fund (ASX:QRI) today.

Sectors to Watch

Technology

The Nasdaq's strong performance may offer stability for local tech stocks such as Xero (ASX:XRO) and WiseTech Global (ASX:WTC). Recent pullbacks could see some recovery momentum if overnight trends persist.

Resources

Key developments include:

Oil: Continued gains with a four-day winning streak, up 4.5% year-to-date.

Gold: A minor 0.7% pullback amid rising bond yields and robust US economic data.

Aluminium: Dipped 1.4%, hitting a four-month low, with range-bound movement persisting.

Uranium

The Global X Uranium ETF rose 2.6% overnight, reaching its highest level since mid-December 2024. Local uranium-focused equities could benefit from this momentum.

Key Events

Ex-Dividend Stocks:

Mon 6 Jan: Eumundi Group (ASX:EBG) – 1.42%, Qualitas Real Estate Income Fund (ASX:QRI) – 0.68%.

Wed 8 Jan: Katana Capital (ASX:KAT) – 0.40%.

Corporate Actions:

Dividends Paid: Collins Foods (ASX:CKF).

No Scheduled Listings or AGMs Today.

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