G'day folks and welcome to another trading day with your friendly, neighbourhood CMC Market Analyst!
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Azeem Sheriff - @Azeem__Sheriff
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Trading Idea of the Day
ASX:FMG - Fortescue Ltd - BULLISH BIAS
- Key levels on the chart - consider taking trades from key support/resistance zones.
World No. 2 iron ore producer Vale SA saw a steeper-than-expected drop in profit on slumping prices and lingering cost inflation which saw the largest iron ore miners globally tumble.
The Brazilian mining giant reported adjusted earnings before items of $US3.7 billion for the third quarter, down 47% from a year ago and well below the $US4.6 billion average analyst estimate.
Vale is focusing on higher-quality ore in a bid to defend margins from the lowest iron ore prices in two years. Futures have slumped on concerns over the cooling impact of higher interest rates, combined with China’s COVID restrictions and real-state woes. We may start to see a similar theme with FMG as well.
Rio Tinto and BHP have warned that commodity producers will keep struggling with global economic uncertainties and a patchy recovery in China. Baoshan Iron & Steel Co, the world’s largest steel maker, also delivered a bleak outlook for the industry in China this week, predicting demand in the country could fall 5% this year.
ASX & Economic Key Events
ASX Key Events Calendar (TODAY)
Economic Key Events (TODAY)
Economic Key Events (YESTERDAY)
OPTO For Investors Research
Article of the Day: Cathie Wood buys 185,000 Robinhood shares
Podcast of the Day: Doomberg on Nord Stream sabotage and monetary mayhem
APAC Daily Report
Click here to access our daily APAC report, prepared by my fellow market analyst @TinaTeng_CMC
Market Snapshot & Highlights as of 7:30am AEDT
EXPECTATIONS: Energy LOWER (lower oil prices) & Materials LOWER on overall lower base metal prices.
Global Markets Headlines
Bank of England Raises Key Interest Rate by 0.75 Point (WSJ)
- Lyft cuts 13% of its workforce (CNBC)
- Stripe lays off 14% of workers (CNBC)
- UK faces longest recession since records began, Bank of England says (CNBC)
- Starbucks earnings beat expectations as consumers spend more in its U.S. stores (CNBC)
- Facebook parent company Meta is now the worst performer in the S&P 500 this year (CNBC)
- Coinbase reports plunge in revenue and swings to a loss as investors exit crypto (CNBC)
- British pound slides after Bank of England recession warning (CNBC)
- Twitter reportedly ready to cut about 3,700 employees (CNBC)
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
