Archives: Reports
Each year, Macquarie’s Quant team puts out their picks for the cup, and we’ve included the key points for Market Matters Members. Thanks to Macquarie for sharing the insights, and as always, punt with your head, not over it!
The ASX200 enjoyed a solid start to the Presidential election week, closing up +0.6%. The financials dragged the index higher throughout the session, contributing ~50% to the market’s advance. Westpac (WBC) reversed an early intra-day ~2.5% loss to finish up +0.9% as investors digested its FY report.
The ASX followed US S&P500 futures and Westpac (WBC) lower in the early morning before reversing higher throughout the day.
The “Magnificent Seven” goliath tech stocks have come off the boil over recent months, illustrated by the NASDAQ failing to break above its July peak, whereas the Broad-based S&P500, Dow Jones and Russell 30 have all posted new milestones in recent weeks. The markets are becoming more discerning towards high-valuation growth stocks, demanding increasingly strong results to maintain their bullish advance.
The ASX200 struggled last week, ending its worst week in 3-months, down 1.1% on broad-based losses as the market jumped from one hurdle to another. The US election is one variable that is now just a few days away—we’re sure everybody will be glad when that particular circus has left town.
November is underway, with the US Presidential election (circus) just a few days away. As we start the weekend, markets are factoring in a Trump victory, but more “surprises” wouldn’t surprise.
The ASX200 slipped 0.25% as we waved goodbye to October; the infamous month finished down 0.6%, but volatility was significantly higher on the stock/sector level as we rolled through AGM season. The financials remained the backbone of the market, advancing 4.5% ahead of key earnings and dividends for 3 of the “Big Four” plus Macquarie Group (MQG).
October wrapped up in the red today, and it was a month of very mixed fortunes from a stock and sector perspective, though the index itself only tracked mildly lower, giving back ~20% of the stellar returns chalked up in September.
Thursday saw the Annual headline inflation rate fall to 2.8% in the three months to September from 3.8% in the June quarter, slightly better than the forecasted 2.9%, but it wasn’t enough to move bond markets or the Aussie Dollar. The numbers were broadly in line with the RBA’s inflation outlook; remember last week, Michele Bullock said it would take another “year or two” before consumer prices are sustainably in their 2-3% target band, i.e. rates will remain higher for longer.
A soft session locally with sellers kicking into gear post a more benign inflation print at 11.30am, though there were some hotter pockets to it, and higher bonds and lower stock prices show how it was interpreted by the market, even though headline CPI at 2.8% came back into the RBA’s target band for the first time in 3-years.
