17/04/2024 09:33

Global Markets

US indices experienced another mixed session overnight, with the S&P500 extending its recent pullback to 4%, a fairly controlled move considering the repricing that’s rolled through credit markets, e.g. the US 10s tested 4.7% last night following Powell's comments after starting the year under 3.8%. The Dow managed to snap a 6-day losing streak overnight, but only just after United Health (UNH US) advanced +5.2% on the back of better-than-expected revenue, which outweighed Johnson & Johnson (JNJ  US), which slipped 2.1%. In the banking sector, earnings reports drove a very mixed performance with Morgan Stanley (MS US) +2.5% while Bank of America (BAC US) slipped -3.5%.

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08/04/2024 08:44

Equity Indices

The ASX200 slipped 1.6% as it kicked off April with a shortened week. As we’ve pointed out a few times recently, every month of 2024 has delivered an average pullback of around 260 points —so far, April has produced a 169-point pullback, and it's only one week old. Our preferred scenario is that the ASX200 will test at least the 7700 level over the coming weeks; hence, we will likely be patient before putting our slightly higher cash levels back to work.

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25/03/2024 08:38

Equity Indices

The ASX200 enjoyed a solid penultimate week of March, taking solace from the FOMC’s read on interest rates with the Materials, Real Estate and Financials leading the advance, whereas weakness in the Consumer Staples and Utilities Sectors illustrated it was another week of “risk on” for stocks. In line with global equities, especially the European stocks, our preferred scenario is to see a test of the 7900-8000 region over the coming weeks. Still, we are conscious that the seasonally weak “sell in May & go away” period is approaching fast.

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20/03/2024 09:26

Global Markets

US indices enjoyed a strong session overall as they awaited news from the Fed's two-day FOMC meeting, which commenced overnight. Nvidia (NVDA US) was the focus of much attention following their first GTC conference, although the stock itself was relatively quiet, i.e. the global artificial intelligence conference might become the new go-to for live events, replacing Apple Inc (AAPL US) and Warren Buffett’s Berkshire’s eagerly awaited presentations.

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18/03/2024 09:04

Equity Indices

The ASX200 endured a tough week, with the dual blow of a major bank downgrade from Macquarie Group and iron falling to multi-month lows, dragging the index down -2.25%. However, it could have been worse when we consider the falls by some of the influential heavyweights, e.g., Fortescue (FMG) -7.7%, Westpac (WBC) -5.5%, Commonwealth Bank (CBA) -4.9%, and BHP Group (BHP) -3.5%. Unfortunately, this classic “one-two” on the chin of the heavyweight ASX names led to significant underperformance by the local market compared to the US S&P500, which only slipped -0.1%.

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04/03/2024 09:09

Equity Indices

The local market exited reporting season on the front foot, closing up +1.3% for the week, an impressive performance considering the miners continued to struggle. Just keeping with the value stocks, so far in 2024, both ANZ & NAB have rallied over +10%, whereas the markets largest stock, BHP Group (BHP) is down over -10%. With rate cuts widely anticipated through 2024/5 and earnings coming in ahead of expectations, investors are driving stocks ever higher – 75% of US companies beat earnings expectations producing Q4 earnings growth of nearly 8%, well ahead of the 1.2% expected at the aggregate level.

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19/02/2024 09:14

Equity Indices

Reporting season is expected to maintain plenty of volatility on the stock level this week with Lend Lease (LLC), Orora (ORA), Cochlear (COH), Centuria Capital (CNI), BHP Group (BHP), RIO Tonto (RIO), Woolworths (WOW), National Storage (NSR), Mineral Resources (MIN), and Pilbara Minerals (PLS) to name just a few facing the music – we expect plenty of action across our local holdings, hopefully net positive! If the Resources Sector can add to the strength in the US on Friday night, we could see the local index outperform many of its global peers.

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16/02/2024 09:00

Global Markets

US stocks rallied again overnight, although the performance baton was handed across to the broader market from tech names, a strong performance from the lagging Materials Sector is set to see the ASX enjoy a strong end to the week with BHP Group (BHP) rallying ~60c in the US. Stocks embraced a weaker Retail Sales number as hopes for quicker rate cuts resurfaced.

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25/09/2023 09:24

Equity Indices

The ASX200 recovered impressively from an early 100-point drop on Friday morning. On balance, we believe the index will again hold the 7000 psychological support area, although, from a technical perspective, we would need a close above 7150 to believe a swing low is in place.

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22/08/2023 09:35

Global Markets

The Japanese Nikkei has corrected -7.4% from its June high in similar but unrelated fashion to the US tech names. While this index continues to follow the MM roadmap we see no reason to deviate from our call through the 2H i.e. we are targeting the 35,000 area over future months.

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