Market digest Wed 22 Dec: Risk-on amid EV stimulus & Moderna hopes, iron ore surges to 4-month highs, up 27% from low, oil up 4% Market digest Wed 22 Dec: Risk-on amid EV stimulus & Moderna hopes, iron ore surges to 4-month highs, up 27% from low, oil up 4% Market digest Wed 22 Dec: Risk-on amid EV stimulus & Moderna hopes, iron ore surges to 4-month highs, up 27% from low, oil up 4%

Market digest Wed 22 Dec: Risk-on amid EV stimulus & Moderna hopes, iron ore surges to 4-month highs, up 27% from low, oil up 4%

Equities 4 minutes to read
Jessica Amir

Market Strategist

Summary:  US equites stronger rallied on better than expected company news from Nike and Micron, while the White House thinks they can get Joe Manchin to vote in favour of Bidens $2 trillion green-energy program supporting the EV sector, and while economic recovery stocks charge as the Moderna vaccine is touted to fight Omicron. Oil jumps 4%, iron ore extends its rally up 3.9%, up 27% from November and now trades at four-month highs, while copper gained 1.3% as Chinas monetary easing and technical triggers buoy metals markets. Plus, the three elements to watch today.

Firstly  -  what you need to know now and consider

US stocks closed sharply higher in turnaround-Tuesday mode, recovering from Monday’s pull back, with all three of the US indices up almost 2% each, while the tech heavy Nasdaq rose 2.4%.

The risk-on-buying the dip mode switched was flicked on for three important reasons; Firstly Moderna said its booster can protect against Omicron, so traders bought the dip into economic recovery stocks, that supported Delta Air Lines and United Airlines shares rising 6%, while Carnival rose 9%. Secondly, better than expected company news was released - markets love that. Nike reported stronger than expected quarterly sales and earnings, offsetting a drop in China revenue and the slowdown in production and transportation. Nike shares rose 6%, with many thinking Nike's digital and online strategy and brand are “stronger than ever”, which should support long-term gains in market share. Shares in chipmaker Micron Technology rose almost 11% on reporting stronger than expected quarterly revenue, and giving bullish guidance. So, other chip makers like NXP Semiconductors and Advanced Micro Devices did well too. And the third reason sentiment got rosier was as the White House says it’s going to work on convincing Joe Manchin to vote for Bidens $2 trillion stimulus package (in the new year) that involves building 500,000 EV charging stations and giving Americans a $12,500 EV incentive.

What to watch now

  • Futures suggest the Aussie market will have a second positive day of trade and rise 0.1% or 10 points, following yesterday’s 0.9% jump; So that basically should square the ASX200 up and see the market recover from last week’s fall.
  • Traders will be watching oil stocks, stocks that benefit from reopening and lithium stocks given EV stimulus could be voted in favour by the US Senate in the new year.
  • Lithium stocks to look at include
    • Pilbara Minerals PLS Australia’s largest lithium company fell 9% yesterday on downgraded output and shipments for 2022. However PLS said the lithium market conditions remain very strong, with high demand and constrained supply leading to record product pricing, which is still trending higher.
    • Allkem (formerly known as Orocobre) and Australia’s second biggest lithium company fell 0.2% yesterday after it had the largest increase in total short positions (according to ASIC and Bloomberg)
    • For a list of EV stocks, see the Saxo Basket basket for ideas.
  • Overnight the iron ore price rose 2.2% and today it’s trading 0.9% higher. The iron ore price is up 26% from the November low after China cut interest rates and started to increase its purchase of Australian iron ore.
    • Why is this important? Iron ore is Australia’s largest export, and it helps the profitability of some of our biggest companies like BHP, RIO and FMG.
    • The iron ore price is still down 48% from its May 2021 high. However, if you are interested in buying into iron ore, keep in mind there is a lot of noise in the sector.
    • There is talk that iron ore stockpiles remain high (meaning there is oversupply). While China is also likely to curb steel production and buying of iron ore ahead of the February Olympics (to reduce emissions).
    • However for now, keep an eye on BHP (BHP), and Fortescue (FMG). Also watch Rio Tinto (RIO) as its stock rose over its Bollinger Bands. Rio's shares are up 15% from the November low. FMG's share are up 44% from their November low, while BHP shares are up 18% from their November low, with all three of the major's technical indicators suggesting their rally will continue. 
  • The Oil price rose 3.9% overnight to $71.29 on positive news from Moderna. But a word of caution. Upside is limited and likely to be capped as the oil futures market is pricing in a surplus for now…meaning… oil could trade lower in the short term. However as Ole Hansen pointed out on the Saxo Market Call Podcast global oil and gas discoveries have dropped to a 70-year low. And this is part of the reason why the longer-term oil outlook looks strong, plus demand will also likely strongly pick up too.
    • However for today’s session keep an eye on Woodside (WPL), WorleyParsons (WOR ), Beach Energy (BPT), Karoon (KAR), Origin Energy (ORG), Santos (STO). 

Secondly, watch companies with Australian analyst rating changes

  • Gascoyne (GCY AU): Cut to Speculative Buy at Canaccord
  • RMD: ResMed Raised at KeyBanc on Sleep Apnea Market Share Strength
  • Murray Cod Australia (MCA): Rated New Overweight at Barrenjoey

Thirdly, watch companies in the news

  • BHP (BHP AU): Gets All Regulatory, Competition Approvals for Unification
  • Fonterra (FSF AU): Whole Milk Powder Average Price Falls to $3,867 a Ton
  • Fortescue (FMG AU): Major Australian Companies Failing at Slavery Disclosure
  • GTK NZ: New Zealand’s Gentrack Says New CFO Will Be Based in London
  • Lendlease (LLC AU): Wins Backing From CPPIB for International Quarter Project in London: AFR
  • Magellan (MFG AU): May Need to Slash Management Fees After Mandate Loss: AFR
  • Resmed (RMD AU): Raised at KeyBanc on Sleep Apnea Market Share Strength
  • Shareholder Events: SWK AU

Markets -  The numbers

  • Global Markets;
    • In the US Dow Average rose 1.6% to 35,492.70, the S&P 500 index charged 1.8%, the tech-heavy Nasdaq charged 2.4%.
    • In Europe the FTSE 100 rose 1.4%, the German DAX gained 1.4%.
  • CommoditiesIron ore price is up 2.3% to $127.30. Copper rises 1.3%, after China’s monetary easing buoys metals markets. Gold spot down 0.2% to $1,788.00. Crude oil rise 4% to $71.35/bbl.
  • Currencies: Euro little changed at $1.1281. Aussie up 0.6% to 0.7154 per US$ as the Prime minister Scott Morrison said on Tuesday that Australia must learn to live with the virus, while restrictions continue to ease and daily Covid cases hit record highs. The Kiwi is up 0.8% to 0.6764 per US$

  • Bonds: U.S. 10-year yield rose 6.3bps to 1.4874%. Australia 3-year bond yield rose 0.5bps to 0.93%. Australia 10-year bond yield rose 6bps to 1.60%

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.