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Welcome to Equity Espresso’s Daily Market Recap.

The Australian share market had its best week of the year, with the ASX 200 index rising by 0.5% or 38.2 pts and finishing the week over 2% higher, closing at 7,860.0. This week, interest rate cuts from the European Central Bank (ECB) and the Bank of Canada fueled optimism that our turn would not be far away.

Ten of the 11 major sectors ended Friday higher, with Discretionary (+1.19%) the big mover as Wesfarmers (+1.31%) and Aristocrat Leisure (+1.88%) led the way. IDP Education (+5.65%) rebounded after falling by over 7.5% on Thursday after stating it expects the size of the international education market will decline by 20-25% over the next twelve months due to stricter government policy.

The Materials (+0.76%) sector was the next best performer, with BHP Group (+1.09%) and Fortescue (+1.29%) as Iron Ore futures ticked up by over 1%. Gold prices held at around US$2.370/oz on Friday, with Evolution Mining (+1.77%) and Perseus Mining (+1.64%) all moving higher.

Global markets were lifted after the European Central Bank (ECB) reduced its key interest rate to 3.75%, citing a marked improvement in the inflation outlook. This decision followed the Bank of Canada's 25 basis points cut to 4.75%.

In company news:

• Life360 (-6.06%) launched a secondary listing of shares on the Nasdaq at $US27 per share.

• GQG Partners (+2.33%) jumped after its assets rose from $US142 billion in April to $US150.1 billion as of May 31.

• Novonix (+9.30%) rose after it refuted the Australian Financial Review's claims that it plans to undertake a capital raise.

Wall Street

A mixed session on Wall Street, with the S&P 500 (-0.02%) and NASDAQ (-0.09%) finishing slightly lower while the Dow Jones (+0.20%) ahead of Friday’s key labour market report. Eight of the 11 major sectors ended higher, led by Discretionary (+0.97%) and Energy (+0.55%), while Utilities (-1.03%) was the worst performer.

Nvidia (-1.18%) lost second spot as the world's most valuable listed company after jumping Apple (-0.71%) a day earlier.

This week, it’s all about Gamestop (+47.45%), with shares rising after online influencer Roaring Kitty said he would hold a live stream on Friday US time. Get the popcorn ready. Lululemon (+4.79%) stock rose after reporting earnings per share of $2.54, above estimates of $2.38. Revenue was $2.21 billion, topping the consensus estimate of $2.19 billion.

S&P500 Sector Performance

Economic Data

• U.S. Non-Farm payrolls were 185,000 in May, slightly higher than the 175,000 in April.

• Chinese Exports rose 7.6% year-on-year to US$302.35 billion in May, beating market expectations of a 6.0% increase after a 1.5% rise in April.

• U.K House prices rose 1.5% year-on-year in May-24, marking six consecutive months of rises.

• The Bank of Canada cut interest rates by 25bps. to 4.75% in its June meeting, which was as expected along with flagging more rate cuts to come should inflation slow.

• The European Central Bank lowered the three key interest rates by 25 bps in June, which was in line with expectations.

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🌎️ Around The Globe

• A group of financial firms and investors has raised $120 million with plans to launch a private market stock exchange called the Texas Stock Exchange as an alternative to the New York Stock Exchange.

• Chinese drugmakers have developed 11 different versions of Novo Nordisk’s diabetes drug Ozempic, which are in the final stages of clinical trials.

• eBay will stop accepting American Express cards, saying the fees are too high.

• HanesBrands will sell its Champion brand to Authentic Brands Group in a deal that could reach up to $1.5 billion.

• Boeing's Starliner crew capsule successfully blasted off on Wednesday, with two humans on board, and docked at the International Space Station (ISS).

• Walmart will pay bonuses to its 700,00 front-line U.S. hourly store workers, including those at its pharmacy and Vision Center store.

• SAP will acquire Israeli-based software company WalkMe, which collects data on how employees use apps, in a deal worth around $1.5 billion.

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*1-year, 3-year and 5-year returns are calculated as of the end of April 2024.

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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 economic decisions. We strongly recommend conducting your research before making any investment decisions.