AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
As of 8:30 am AEST, ASX 200 futures are trading 11 points higher, up 0.13%.
Overnight, major US benchmarks ended slightly lower, with small-cap stocks outperforming. Alphabet reported its earnings after the bell, resulting in a 1.6% drop in its shares during extended trading. Oil prices have hit a five-week low due to easing tensions in the Middle East. Additionally, Chinese lithium futures have slumped to near year-to-date lows once again. On a positive note, Pilbara Minerals announced a significant beat in FY24 spodumene production.
OVERNIGHT MARKETS
Major US benchmarks eased to finish near session lows overnight, while small caps outperformed, with the Russell 2000 nearing last Tuesday’s record high. Despite a relatively quiet macro session, key earnings reports came from UPS, General Electric, SAP, and Lockheed Martin. Barclays raised its 2024 year-end S&P 500 target from 5300 to 5600, anticipating continued upside surprises from big tech earnings. With approximately 20% of the S&P 500 having reported Q2 results, the blended growth rate for Q2 earnings is up 10.1%, surpassing expectations of 8.9%. Nearly 81% of companies have beaten EPS expectations, reporting earnings 5.5% above consensus.
ASX TODAY
Mesoblast’s Biologics License Application for remestemcel-L has been accepted by the FDA (MSB). Genesis Capital remains opposed to Crescent Capital’s bid for Pacific Smiles (AFR). Pilbara Minerals reports its Q4 production and provides FY25 guidance (PLS). Flight Centre has adjusted its FY24 PBT guidance to $316-324 million, down from the prior $300-340 million range (FLT). Telix Pharmaceuticals (ASX:TLX) has launched a $600 million convertible notes offering due in July 2029, with a conversion premium of 30-35% above the reference share price (ASX:TLX). West African Resources has reported its Q2 gold production and reaffirmed its full-year guidance (ASX:WAF). Wagners has reported a preliminary FY operating EBIT of $40 million, exceeding prior guidance of $31-34 million (ASX:WGN). Worley shareholder Samurai Investments is seeking to sell a 15.2 million share block with a floor price of $14.90, compared to the last close of $15.19 (The Aus).
WHAT TO WATCH TODAY
Lithium: The VanEck Rare Earths and Strategic Metals ETF hit a new multi-year low, down 2.2% overnight to levels not seen since November 2020. This ETF, a useful barometer for the lithium sector, includes top holdings such as Pilbara Minerals (7.48% of net assets), Albemarle (7.3%), and SQM (6.9%). Although Chinese lithium carbonate futures were slightly positive when our market closed, they finished the session 0.9% lower, nearing year-to-date lows of 87,900 yuan per tonne.
Pilbara Minerals: Reports Q4 spodumene production of 226.2k, surpassing the 184k consensus. The realised price was $840 per tonne, considerably lower than the $963 consensus. Full-year production volume was 725kt, beating the 660-690kt guidance, with a unit operating cost of $654 per tonne, in line with the $600-670 guidance. FY25 spodumene production guidance is set at 800-840k dmt, with a unit operating cost of $650-700 per tonne and total capex of $615-685 million.
