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Welcome to Equity Espresso’s Daily Recap.

Markets rebounded on Monday following Friday’s rout, as tensions between Israel and Iran appeared to ease over the weekend. The ASX 200 index finished Monday 81.9 pts. or 1.08% higher to close at 7,649.20. Ten of the 11 sectors finished in the green, with Energy (-1.51%) the only sector to close in the red as Brent Crude futures fell below US$86/bbl on Monday. Woodside Energy (-2.62%) and Santos (-1.15%) were two of the biggest fallers in the sector.

Health Care (+1.97%) was the best performer, followed by the Telco. (+1.73%) and Technology (+1.52%) sectors. Gold prices fell by more than 1.0% on Monday to US$2,360/oz, retreating from record highs as tensions ease in the Middle East. Gold miners Evolution Mining (-1.47%), Perseus Mining (-3.04%) and Bellevue Gold (-6.94%) all saw sharp falls.

In company news, South32 (+5.64%) shares rose after it maintained its FY24 production and cost guidance except its Australian manganese business. Droneshield (-16.07%) shares fell to $0.94 after completing a $100 million capital raise, taking advantage of its recent share price spike, completing the raise at $0.80 per share. Base Resources (+123.81%) rocketed after it received a takeover offer from U.S.-based uranium and critical minerals producer Energy Fuels.

Wall Street

The NASDAQ (-2.05%) and S&P 500 (-0.88%) finished the day lower as Netflix (-9.09%) shares weighed down markets, while the Dow Jones (+0.56%) rose as American Express (+6.23%) lifted after reporting quarterly earnings that beat expectations.

The S&P and Nasdaq have fallen for six straight sessions, the longest streak of declines for each index since October 2022. The S&P is now down 5.46% from its closing record on March 28.

Netflix (-9.09%) shares slumped after the company's second-quarter revenue view fell short of analysts' expectations. The company also unexpectedly said it would no longer provide subscriber counts. American Express (+6.23%) shares rose after reporting diluted earnings per share of $3.33 during Q1, beating expectations of $2.95 per share. Revenue was $15.8 billion versus estimates of $15.79 billion as consumer spending increased 8% from a year earlier.

S&P500 Sector Performance

Economic Data

• German Producer Prices fell by 2.9% year-on-year in March 24 following a 4.1% drop in the previous month, marking the ninth straight month of producer deflation but, the smallest decline since July.

• China’s Loan Prime Rate remained unchanged at 3.45% at April’s meeting, in line with market expectations.

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Quick Singles

🌎️ Around The Globe

• Meta has rolled out Llama 3, the latest update to its large language model. The new release has a dedicated website that you can use, which looks oddly similar to the Chat GPTs platform.

• Google terminated 28 employees after a series of protests against labour conditions and the company’s contract to provide the Israeli government.

• Slack has launched a new AI tool, "Recap," that compiles a daily summary of important conversations, providing users with a summary of key interactions each morning.

• Apple has removed WhatsApp and Threads from its app store in China, complying with Beijing's orders. The Cyberspace Administration of China cited national security concerns as the reason for the removal of these apps.

• Bark Air announces that it is launching new luxury flights for dogs and their humans. The company is partnering with a jet charter service to give dogs their own first-class flight experience, with tickets costing $6,000.

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