European Equities Traded in the US as American Depositary Move Higher in Monday Trading

The S&P/ASX 200 closed 28.9 points lower, down 0.35%.

It was another day of very clearly delineated haves and have nots. “Have” sectors included those still basking in the warm afterglow of last week’s Trump + Red Sweep, plus those enjoying a continued but very modest dip in market yields in the USA on Friday.

“Have Not” sectors were generally those more exposed to Chinese economic growth as investors lamented China’s National People’s Congress Standing Committee's failure to wield a bazooka of fresh fiscal stimulus measures at their meeting over the weekend.

Click/scroll through for the usual reporting of the major sector and stock-specific moves, the broker responses to them, as well as all of the key upcoming economic data in tonight's Evening Wrap.

Let's dive in!

Today in Review

Mon 11 Nov 24, 5:07pm (AEDT)

Markets

ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 28.9 points lower at 8,266.2, 0.35% from its session high and 0.24% from its low. In the broader-based S&P/ASX 300 (XKO), advancers lagged decliners by a disappointing 111 to 166.

It was another day of very clearly delineated haves and have nots. “Have” sectors included those still basking in the warm afterglow of last week’s Trump + Red Sweep (US earners and other strong US dollar beneficiaries), plus those enjoying a continued but very modest dip in market yields in the USA on Friday (high-PE / long duration earnings and consumer-related).

Information Technology (XIJ) (+1.4%), Real Estate Investment Trusts (XPJ) (+1.4%), Health Care (XHJ) (+0.70%), and Consumer Discretionary (XDJ) (+0.41%) topped the Have winners list.

The best performing stocks from the best performing ASX sectors today

“Have Not” sectors were generally those more exposed to Chinese economic growth, like Resources (XJR) (-2.8%) and Energy (XEJ) (-0.67%), and Gold (XGD) (-0.53%). China’s National People’s Congress (NPC) Standing Committee meeting over the weekend did not produce the bazooka of fresh fiscal stimulus measures investors had built into Friday’s gains in these sectors. Who would have thunk it!? 🤔

This excerpt from a Citi note on the meeting says it all:

The RMB12trn implicit local-debt resolution is more decisive than expected, but its direct growth impact could be quite limited, saving local governments’ interest expenses <0.1% of GDP a year. We think the lack of pro-growth measures, especially consumer stimulus, was a disappointment to markets

– Citi, From: “China Economics: Fiscal Details Appear to Fall Short of Market Expectations Despite High Headline Number”, 10 November 2024

If there is a silver lining, Citi do go on to say about the disappointing NPC meeting it was not enough “to dismiss the ‘policy pivot’”. This suggests the broker still feels there exists the possibility the bazooka (or cap gun) could still be unleashed.

Iron ore stocks like BHP Group (-4.1%), Champion Iron (-9.8%), Fortescue (-7.3%), and Rio Tinto (-3.1%) came in for some special attention today, but falls were also otherwise democratically distributed across base and precious metals, uranium, energy and lithium – the prices of each were generally lower (to sharply lower) on Friday.

Elsewhere, a profit downgrade from Endeavour Group (-4.9%) surprised investors (or at least those investors who don’t read my ChartWatch ASX Daily Scans where it has been one of the most featured in the Downtrends lists for several months now). This dragged on Consumer Staples (XSJ) (-1.8%), making it the second worst performing major sector index.

The worst performing stocks from the worst performing ASX sectors today

Economy

Today

• There weren't any major data releases in our time zone today

Later this week

Tuesday

• 10:30 AUS Westpac Consumer Sentiment October (6.2% September)

• 10:30 AUS NAB Business Confidence October (-2 September)

Wednesday

• 11:30 AUS Wage Price Index September quarter (+0.9% q/q forecast vs +0.8% q/q in June quarter)

Thursday

• 00:30 USA Core Consumer Price Index (CPI) October (+0.3% m/m and +3.3% p.a. forecast vs +0.3% m/m and +3.3% p.a. in September)

• 10:00 AUS RBA Governor Michelle Bullock speaks

• 11:30 AUS Employment change October (+25,200 jobs forecast vs +64,100 jobs in September), Unemployment rate forecast steady at 4.1% in September)

Friday

• 00:30 USA Core Producer Price Index October (PPI) (+0.2% m/m and +2.0% p.a. forecast vs +0.2% m/m and +2.0% p.a. in September)

• 07:00 USA Federal Reserve Chairman Jerome Powell speaks

• 12:30 CHN Data Dump:

  • New Home Prices m/m (-0.7% m/m previous)

  • Industrial Production y/y (+5.5% y/y forecast vs +5.4% y/y previous)

  • Retail Sales y/y (+3.8% y/y forecast vs +3.2% y/y previous)

  • Fixed Asset Investment ytd/y (+3.5% ytd/y forecast vs +3.4% ytd/y previous)

  • Unemployment Rate (steady at 5.1%)

Saturday

• 00:30 USA Core Retail Sales October (+0.2% m/m forecast vs +0.5% m/m in September)

Latest News

Data Insights cxo gl1

Lithium prices have bottomed: These are the highest rated ASX lithium stocks

Mon 11 Nov 24, 1:35pm (AEDT)

Technical Analysis 360 all

ChartWatch ASX Scans: Life360, Aristocrat, Appen, Crypto Innovators ETF, Iperionx, JB Hi-Fi, Pointsbet, Polymetals, Tasmea, Titomic

Mon 11 Nov 24, 9:00am (AEDT)

Market Wraps

Morning Wrap: ASX 200 to fall, S&P 500 and Dow mark best week this year, China stimulus disappoints

Mon 11 Nov 24, 8:41am (AEDT)

Market Wraps anz apx

Evening Wrap: ASX 200 can't do any wrong, first Trump, now falling yields and China stimulus hopes help stocks close in on record

Fri 08 Nov 24, 5:55pm (AEDT)

Data Insights bhp fmg

Is it time to bet on iron ore miners like Fortescue, BHP and Rio Tinto?

Fri 08 Nov 24, 11:35am (AEDT)

Technical Analysis amp anz

ChartWatch ASX Scans: Credit Corp, Computershare, Helia, Hansen Technologies, QBE, Titomic, Tryptamine Therapeutics, Xero, Droneshield

Fri 08 Nov 24, 9:00am (AEDT)

More News

Interesting Movers

Trading higher

• +14.7% Weebit Nano (WBT) - No news, probably started as Trump-Red Sweep tech rally, add in

  The Australian article on Friday, equals a combination of speculative buying and at least some short covering in what was a horrific downtrend

• +12.5% Novonix (NVX) - NOVONIX and Stellantis Sign Binding Offtake Agreement

• +10.2% Pointsbet (PBH) - Response to Media Speculation, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +9.8% Iperionx (IPX) - No news, but this AFR article from Nov 7 likely helped spark this latest rally (paywall), rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +6.1% Appen (APX) - Change of Director's Interest Notice - Mr Stuart Davis and Change of Director's Interest Notice - Ms Robin Low (participation in Share Purchase Plan), but also some Trump-Red Sweep tech rally, plus US earnings, plus rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +5.3% Vulcan Energy Resources (VUL) - No news since 8 Nov First lithium hydroxide production at downstream plant, solid gain in benchmark lithium carbonate futures contract in China today, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +4.7% Mesoblast (MSB) - No news, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +4.0% HMC Capital (HMC) - Acquisition of iseek and DigiCo Platform Update and Acquisition of iseek Data Centre Platform, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +3.9% Clarity Pharmaceuticals (CU6) - Clarity and Nucleus RadioPharma sign MSA

• +3.4% SRG Global (SRG) - No news, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

• +3.1% Zip Co. (ZIP) - No news, rise is consistent with prevailing short and long term uptrends, has been a regular in ChartWatch Daily Scans Uptrends lists for a few months now 🔎📈

Trading lower

• -32.8% Resolute Mining (RSG) - Company Statement regarding Mali (another sovereign risk casualty - Bullish on Gold? The case for bullion and gold ETFs over ASX gold stocks!)

• -11.3% Infomedia (IFM) - Revised Revenue Guidance Range, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -10.0% Kingsgate Consolidated (KCN) - No news, generally tough day for ASX gold stocks even without foreign government intervention in projects!

• -9.8% Champion Iron (CIA) - No news, generally tough day for ASX iron ore stocks on disappointment over lack of meaningful stimulus measures announced at weekend's China NPC meeting, lower iron ore price today, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -9.1% Pantoro (PNR) - November 2024 Investor Presentation, but ditto tough day for gold stocks generally

• -8.7% Develop Global (DVP) - No news, ditto resources stocks struggling in general today on China stimulus disappointment, also LME metals prices generally sharply lower on Friday

• -7.9% Iluka Resources (ILU) - No news, fall is consistent with prevailing short and long term downtrends, one of the most featured charts in ChartWatch Daily Scans Downtrends lists 🔎📉

• -7.6% Clearview Wealth (CVW) - Continued negative response to Friday's 2024 AGM Addresses to Shareholders and proceedings and Thursday's Response to ASX Price Query, fall is consistent with prevailing short and long term downtrends

• -7.3% Fortescue (FMG) - Ditto lousy day for ASX iron ore stocks, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -6.8% The A2 Milk Company (A2M) - No news, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -5.9% Lotus Resources (LOT) - No news, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -4.9% Endeavour Group (EDV) - F25 First Quarter Trading Update, fall is consistent with prevailing short and long term downtrends, one of the most featured charts in ChartWatch Daily Scans Downtrends lists 🔎📉

• -4.3% Deterra Royalties (DRR) - Ceasing to be a substantial holder, ditto lousy day for ASX iron ore stocks, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

• -4.1% Droneshield (DRO) - No news, fall is consistent with prevailing short and long term downtrends, has been a regular in ChartWatch Daily Scans Downtrends lists for a few months now 🔎📉

Broker Notes

• Amaero International (3DA)

  • Retained at buy at Shaw and Partners; Price Target: $0.60

• The A2 Milk Company (A2M)

  • Retained at buy at Citi; Price Target: $7.04

• Aristocrat Leisure (ALL)

  • Retained at buy at Citi; Price Target: $74.00 from $59.00

• ANZ Group (ANZ)

  • Retained at sell at Citi; Price Target: $25.25 from $25.00

  • Retained at underweight at Macquarie; Price Target: $26.50

  • Retained at underweight at Morgan Stanley; Price Target: $27.80 from $27.50

  • Downgraded to reduce from hold at Morgans; Price Target: $25.29 from $26.13

  • Retained at hold at Ord Minnett; Price Target: $27.50

  • Downgraded to neutral from buy at UBS; Price Target: $32.00

• APA Group (APA)

  • Retained at outperform at Macquarie; Price Target: $8.13 from $8.23

• Avita Medical (AVH)

  • Retained at buy at Bell Potter; Price Target: $4.60 from $3.60

  • Retained at add at Morgans; Price Target: $4.56

• Credit Corp Group (CCP)

  • Retained at outperform at Macquarie; Price Target: $19.62 from $18.01

• Cochlear (COH)

  • Upgraded to outperform from sector perform at RBC Capital Markets; Price Target: $332.00 from $280.00

• CSL (CSL)

  • Retained at buy at Citi; Price Target: $345.00

  • Retained at accumulate at Ord Minnett; Price Target: $320.00

• Domain Australia (DHG)

  • Upgraded to buy from overweight at Jarden; Price Target: $3.35 from $3.45

• Domino's Pizza Enterprises (DMP)

  • Retained at hold at Morgans; Price Target: $30.70 from $33.20

• Endeavour Group (EDV)

  • Retained at neutral at Citi; Price Target: $5.18

• Fortescue (FMG)

  • Initiated at neutral at CICC; Price Target: $18.10

• GQG Partners (GQG)

  • Retained at buy at Ord Minnett; Price Target: $3.35

• IPH (IPH)

  • Initiated at buy at Ord Minnett; Price Target: $6.40

• Incitec Pivot (IPL)

  • Retained at neutral at Citi; Price Target: $3.10

• Jumbo Interactive (JIN)

  • Retained at buy at Citi; Price Target: $14.70

  • Retained at overweight at Morgan Stanley; Price Target: $19.50

• Lindsay Australia (LAU)

  • Retained at add at Morgans; Price Target: $1.15

• Lynas Rare Earths (LYC)

  • Retained at sell at Citi; Price Target: $5.50

• News Corporation (NWS)

  • Retained at buy at Goldman Sachs; Price Target: $52.00

  • Retained at hold at Ord Minnett; Price Target: $50.00

• Orica (ORI)

  • Retained at overweight at Morgan Stanley; Price Target: $21.50

• Propel Funeral Partners (PFP)

  • Retained at buy at Bell Potter; Price Target: $6.80 from $6.40

• REA Group (REA)

  • Retained at buy at Bell Potter; Price Target: $258.00 from $239.00

  • Retained at buy at Goldman Sachs; Price Target: $249.00 from $245.00

  • Upgraded to underweight from sell at Jarden; Price Target: $181.00 from $177.00

  • Retained at hold at Morgans; Price Target: $210.00 from $204.00

  • Retained at hold at Ord Minnett; Price Target: $240.00 from $225.00

  • Retained at buy at UBS; Price Target: $268.00 from $263.00

• Ramsay Health Care (RHC)

  • Retained at hold at Ord Minnett; Price Target: $42.40

• Stockland (SGP)

  • Retained at buy at Citi; Price Target: $6.00

• Vulcan Energy Resources (VUL)

  • Retained at buy at Canaccord Genuity; Price Target: $11.50

• Woodside Energy Group (WDS)

  • Retained at neutral at Goldman Sachs; Price Target: $26.90 from $27.20

  • Retained at hold at Ord Minnett; Price Target: $25.50 from $26.50

• WEB Travel Group (WEB)

  • Downgraded to underweight from equal-weight at Morgan Stanley; Price Target: $3.70 from $7.00

Scans

Top Gainers

View all top gainers

Top Fallers

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52 Week Highs

View all 52 week highs

52 Week Lows

View all 52 week lows

Near Highs

View all near highs

Relative Strength Index (RSI) Oversold

View all RSI oversold

The biopharmaceutical sector showed signs of recovery in the third quarter of 2024, fueled by increased investor optimism following the U.S. Federal Reserve’s interest rate cuts in September.

According to GlobalData, the top 20 global biopharmaceutical companies saw a 2% rise in their combined market capitalization, reaching $4.3 trillion by the end of September, up from $4.2 trillion in June.

This rebound highlights the industry’s potential for growth despite challenges earlier in the year.

Bristol-Myers Squibb & Co led the market with the largest increase in capitalization, which surged by 24.6% to $105 billion. This was largely driven by advancements in its pipeline, notably the FDA’s approval of its antipsychotic drug, Cobenfy, for treating schizophrenia in September 2024.

Gilead Sciences Inc also posted impressive growth, rising 22.1% in market value, thanks to the accelerated FDA approval of Livdelzi, a treatment for primary biliary cholangitis, as well as the approval of its antibody-drug conjugate, Trodelvy, for HR-/HER2- breast cancer in Japan.

Sanofi SA experienced a 19.2% jump in market capitalization, largely fueled by its flagship drug Dupixent. The drug’s strong performance in the treatment of conditions such as asthma and atopic dermatitis, coupled with its recent EMA and FDA approvals for chronic obstructive pulmonary disease (COPD), further boosted Sanofi’s standing.

Similarly, AbbVie Inc saw a 15.2% increase in its market cap, driven by the continued success of its immunology drugs—Humira, Skyrizi, and Rinvoq—which together generated nearly $7 billion in Q2 2024 sales.

Alnylam Pharmaceuticals Inc joined the top 20 biopharmaceutical companies with a 14.9% rise in its market value, following its RNAi drug vutrisiran's positive results in treating ATTR amyloidosis with cardiomyopathy.

Roche Holdings AG's market capitalization grew by 13.8%, spurred by the FDA’s approval of two key products, Ocrevus Zunovo for multiple sclerosis and Tecentriq Hybreza for oncology indications, the latter being the only approved subcutaneous PD-L1 inhibitor available.

On the downside, Wegovy maker Novo Nordisk A/S saw an 18.2% drop in its market cap after the FDA rejected its BLA filing for the once-weekly insulin icodec.

Similarly, Eli Lilly & Co reported a slight decline of 2.1%, though both companies retained their leadership in diabetes and weight loss drugs.

Merck & Co Inc also faced a 8.2% fall in market value, largely due to disappointing sales of its HPV vaccine, Gardasil, in China.

"The biopharmaceutical industry is poised for a recovery, fueled by multiple FDA approvals leading to a rebound in companies that have seen declines in market capitalization in previous quarters, such as Gilead Sciences and Bristol-Myers Squibb,” says GlobalData analyst.

Read Next:

• ADC Therapeutics Faces Competitive Oncology Market But Analyst Sees 100% Upside – Here’s Why

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