Good Evening,

Welcome to Equity Espresso’s Daily Recap. 

Sell, sell, sell was the theme on the Aussie market today, following the negative lead from Wall Street on Friday as the ASX 200 index shed 142.8 pts to fall by 1.8% to 7,704.20. There were few places to hide in the sell-off as all 11 sectors finished the start of the week in the red.

Materials (-2.56%) was the worst performer, as Iron ore futures fell 4.6% to $US110.55/t and are heading for their lowest close since last August. BHP Group (-2.69%), Fortescue (-3.51%) and Rio Tinto (-3.55%) all lost ground.

Financials (-2.17%) were another big faller, giving back all of Friday’s gains like it never happened, with the Big Five banks all finishing lower. Energy (-2.07%) stocks fell as Crude Oil prices stayed lower ahead of two key reports this week that will provide clarity on the demand outlook:

• OPEC is scheduled to release its monthly market report on Tuesday

• IEA will issue its corresponding outlook on Thursday

One to watch this week is the U.S. Consumer Price Index (CPI), which is set to be released on Tuesday evening Australian time. Analysts expect CPI growth for February to come in at 3.1%. A mark straying from expectations in either direction will likely affect market sentiment on when the Federal Reserve will lower interest rates.

Gold prices surged to a new record high of US$2,200/oz on Friday after the latest U.S. jobs report last week reinforced the view that interest rate cuts may come as soon as June.

Worley (-1.90%) shares closed the day lower despite being awarded a professional services contract by global oil and gas giant Shell. Regional Express (Rex) shares rose 4.40% after the company announced a code-sharing partnership with Etihad Airways. The partnership will allow passengers to fly to either Sydney or Melbourne on Rex and then connect to other destinations overseas on Etihad flights. It will also enable passengers to book their entire journey, including the Rex and Etihad connecting flights, under one booking.

Technology company TASK Group (+90.0%) shares surged to close at $0.76 after entering into a takeover agreement with U.S.-listed PAR Technology Corporation, which is set to acquire the fast-food software provider. Under the agreement, TASK shareholders will have the option to receive:

1. 100% cash offer - valuing TASK Group at $0.81 per share; or

2. A Mix of Cash and PAR shares (up to 50%) valuing the bid at $0.91 per TASK share,

Friday’s Poll Result - When does the ASX 200 hit 8,000?

Your votes are in, and the results were…mixed, to put it best.
Just over 42% of you believe we will hit 8,000 sometime in March, with Before Easter (21.3%) the most popular view followed by Before April (21.0%).

Thanks to the 600+ readers who voted!

Wall Street

The S&P 500 (-0.65%) and NASDAQ (-1.16%) closed lower on Friday, although both touched record highs during the session as high-flying chip stocks went into reverse and a mixed labour market report. The report showed that there were more new jobs than expected, but at the same time, the unemployment rate increased.

The Philadelphia Semiconductor Index sharply underperformed, ending the day down 4% after touching an intraday record high. Nvidia (-5.6%) closed lower, snapping a six-session winning streak, while it had been up more than 5% early in the session.

Economic Data

• The U.S. Economy added 275,000 jobs in February, beating forecasts of a 200,000 gain and higher than the 229,000 jobs added in January.

• China's Consumer Prices rose by 0.7% YoY in February 2024, above forecasts of 0.3% — a stark turnaround from a 0.8% fall in January, the sharpest fall in 14 years.

• China's Producer Prices fell by 2.7% YoY in February, compared with market consensus and January's print of a 2.5% decline. It was the 17th straight month of contraction in the sector.

Sponsor

Daily Curated Tech Digest
From Top Media Outlets

The A.I. tech landscape is evolving rapidly, with daily introductions of new tools, features, and companies.

Keeping pace with these advancements can be challenging.

Techespresso sends a daily summary of the essential A.I. and tech news, selected from 50+ media outlets (The Verge, Wired, Tech Crunch, etc.).

Sign up today. (one-click subscribe) ⬇️ 

Get Your Business Featured Here

Take a look at our sponsorship packages to feature your business in Equity Espresso’s newsletter.

Quick Singles

🌎️ Around The Globe

• The FDA has approved Novo Nordisk's weight-loss drug, Wegovy, to treat heart problems. This drug can now be prescribed to adults with obesity to reduce the risk of heart attack, stroke, and cardiovascular-related death.

• Apple has reversed an earlier decision to block Epic Games’s developer account in Sweden. The Fortnite creator can now create its own app store for European iPhones.

• OpenAI has reinstated CEO Sam Altman to its board, stating it has “full confidence” in his leadership following the conclusion of an investigation into what led to his ousting in November.

• Eli Lilly said that the FDA had pushed back the approval decision deadline for the drugmaker’s experimental Alzheimer’s treatment, donanemab.

• U.S.-based chipmaker Intel will receive $3.5 billion of funding under the US CHIPS Act to manufacture advanced A.I. chips. The CHIPS Act is a $39 billion funding pool for U.S. companies to set up manufacturing facilities.

• Apple reportedly plans to release a 20.3-inch MacBook with a foldable screen in 2027. When fully expanded, the screen will measure about 20 inches diagonally.

• Stock trading platform Robinhood is forming a strategic partnership with Klutch Sports Group as the financial services company looks to expand its reach into sports, entertainment and media.

• The U.S. House Energy and Commerce Committee unanimously voted to approve a bill giving China’s ByteDance 165 days to divest its ownership of TikTok — or effectively face a U.S. ban.

   

Markets

ASX Company Movers

Commodity Prices

Bonds

Forex

Global Health Check

Partners

Your Investing Essentials

Become a more informed and better investor with the best research tools from our trusted partners.

Help support the Equity Espresso newsletter by signing up using the links below:

Trading View: The best charting platform money can buy. Used by over 50 million traders and investors around the world. Signup here

Koyfin: Our platform provides comprehensive investment research on various asset classes, such as equities, fixed income, funds, ETFs, and foreign exchange. Signup here

Tikr: A software analytics platform used to track stocks. Tikr aggregates the best investment resources into one comprehensive platform for a fraction of the price. Signup here

FinTip: An education and content-based app. that includes a competition-based game designed to engage, help and educate to make better investment decisions. Download here

Moomoo: Get a kick start on your trading journey with ten free stocks and a generous interest rate on uninvested cash. Signup here

A Little Extra

📉 Going Down?

Top-10 shorted stocks on the ASX - as of March 5

📂 Broker Ratings

1. Virgin Money U.K. (VUK) - Downgrade to Neutral from Outperform (Macquarie)

👨‍💼 Director Transactions

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

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make financial decisions. We strongly recommend conducting your own research before making any investment decisions.