Good Evening,

Welcome to Equity Espresso’s Daily Recap. 

The ASX 200 index started the day lower but clawed its way back as the afternoon wore on to finish Thursday down 29.1 pts or -0.39% to close below 7,500 at 7,494.10.

Seven sectors finished lower, with Staples (-0.98%) and Materials (-0.78%) the biggest fallers. The Energy (+1.31%) sector was the biggest positive mover after WTI Crude Oil rose above US$73/bbl, as geopolitical risks in the Middle East ignited fears of broader supply disruptions. Woodside Energy (+1.28%), Santos (+1.46%) and Ampol (+1.46%) all led the Energy sector higher, while Woolworths (-1.12%), Coles (-0.83%) and Endeavour (-1.40%) all fell.

Atomos Chief Executive and Managing Director Trevor Elborne has resigned and left the business effective immediately. Co-founder Jeromy Young will return to the business to fill the role after leaving in November 2021. Chief Financial Officer James Cody will also leave his position at the end of January following a handover period. Atomos shares remain suspended at $0.07 per share.

Westgold Resources produced 59,238/oz of gold during Q2 at an average sales price of A$3,041/oz. The company said it remains on track to achieve FY24 production guidance of 245,000 - 265,000/oz. SDI Limited provided a trading update today, reporting a 3% increase in half-year sales to $52.1 million, with an increase in European sales driving the result.

Wall Street

U.S. markets fell on Wednesday, starting the year on a low note after a strong end to 2023, with minutes from the Federal Reserve's December meeting failing to boost market sentiment. The S&P 500 fell by 0.8%, making it the worst two-day result since late October.

Investors have been exercising caution so far in 2024, with apprehension regarding the central bank's anticipated shift towards rate cuts, specifically how quickly these may be implemented. Although the Federal Reserve is expected to keep rates on hold in January, with traders estimating a 67% chance of a 25 basis point rate cut occurring in March.

The Fed minutes released on Wednesday showed that policymakers appear increasingly convinced that inflation was coming under control.

Economic Data

• The number of job openings in the U.S. decreased by 62,000 during November, marking the lowest level since March 2021. This was the third consecutive month of declines in U.S. job openings, reflecting the ongoing easing of labour market conditions.

• The ISM Manufacturing PMI in the U.S. improved slightly to 47.4 in December from 46.7 in November, and better than market forecasts of 47.1. The reading pointed to the 14th month of contraction in factory activity.

• The Caixin China General Service PMI increased to 52.9 in December from 51.5 in November, beating market expectations of 51.6.

Sponsor

Unlock Success, Gain Clarity &
Overcome Roadblocks

The daily 1-minute brain hack you need each day

Are you feeling overwhelmed and finding it difficult to make significant progress in your business?

Cut through the chaos and stay focused with the daily 1-minute question. (one-click subscribe) ⬇️ 

Quick Singles

🪃 Local News

• Australia's new vehicle sales hit a record in 2023, with 1,216,780 vehicles delivered, beating the 2017 record of 1,189,116. Total sales were up 12.5% from 2022. Full battery electric vehicles made up around 7.2% of new vehicle sales - up from 3.1% in 2022, with the Tesla Model Y the best-selling E.V. and #6 of all cars sold.

• The recent rise in Iron Ore prices is expected to deliver the Australian government an estimated $18 billion in extra tax revenue as optimism continues to build in China’s economic recovery.

🌎️ Around The Globe

• General Motors is offering incentives of $7,500 on electric vehicles (EVs), which lost a U.S. government tax credit earlier in the week. GM said EVs would temporarily lose eligibility except the Chevrolet Bolt.

• Bankruptcy filings in the United States increased by 18% in 2023 due to higher interest rates, stricter lending standards, and the ongoing phasing out of pandemic-related support measures. However, despite the rise, the number of insolvency cases is still lower than the pre-COVID-19 levels.

• Indian banks will be hit with a proposed set of conditions that local and overseas lenders operating in the country must meet before paying shareholders dividends, overhauling two-decade-old regulation.

• China removed an official at a government body overseeing its press and publications regulator days after Chinese gaming stocks were hit by proposed rules to curb spending on video games.

• India’s Supreme Court ruled that the Adani Group need not face further investigations beyond the current scrutiny of the market regulator. This decision provides relief for the conglomerate, which was hit hard by a short-seller's allegations of wrongdoing.

• The Norwegian Road Federation reported that 82.4% of the country’s new car sales in 2023 were electric, up from 79.3% in 2022 - with Tesla the top-selling EV maker.

• Pfizer has around $2.2 billion worth of its COVID drug, Paxlovid, which is set to expire at the end of February as demand for the COVID-19 treatment plummets.

Markets

ASX Company Movers

Commodity Prices

Bond Prices

ETF Watch

Newsletter Recommendation

One-click subscribe 

A Little Extra

📉 Going Down?

Top-10 shorted stocks on the ASX - as of December 28

👨‍💼 Director Transactions

What are the insiders doing? (On-market trade only)

DISCLAIMER: None of the information provided in this newsletter should be constituted as financial advice. This newsletter is strictly for educational purposes only. It should not be taken as investment advice or a solicitation to buy or sell assets or make financial decisions. Please do your research.