The ASX200 closed at its highest ever level, surpassing its previous record set 8 weeks ago. Friday saw the market gain another +0.45% extending January's advance to +4.57% with the rate-sensitive consumer discretionary, financials, real estate and tech sectors leading the charge. We are only five weeks into the new year, but the local market has already managed to dismiss the Trump inauguration and an AI shakeout courtesy of DeepSeek. Local stocks have followed European indices powering to fresh all-time highs, while US indices have struggled to advance year to-date under the weight of heavy AI selling, e.g. Heavyweight Nvidia (NVDA US) is down over 10% year-to-date.
The ASX200 ended a volatile and tough week, down 2.76% hitting a 100-day low on Friday. The Fed was the catalyst after cutting interest rates by 0.25% on Wednesday night, but at the same time, it moved the proverbial goalposts in terms of the future path in 2025. The Fed revised its outlook for rate cuts in 2025, indicating two reductions, down from the four previously forecasted in September.
The ASX200 ended the second week of December down by 1.48%, with the tech sector leading the retreat, tumbling by 5.7%. This was accompanied by real estate, financials, and industrials, which all declined by around 2%. The consumer staples and materials sectors were the only pockets to close up for the week, and they both advanced less than 0.1%. On the stock front, we saw some standout performance reversion from trends of 2024:
The ASX200 ended the first week of December down just 0.2%, with the real estate sector the main drag, falling 2.65% following the sell-down of $1.9bn worth of sector/market heavyweight Goodman Group (GMG) stock. Conversely, IT and consumer discretionary sectors were best on the ground. The gold names dominated the winner's enclosure after Northern Star's (NST) $5bn takeover of De Grey Mining (DEG), while lithium and ESG continued to decline.
The ASX200 ended the week up +0.5% and +3.38% for the month, and an even more impressive +3.9% when we include the chunky dividends in November. Through the penultimate month of the year, tech led the charge, advancing over 10%, while the materials and energy sectors were the only two to finish lower; it was a case of different month, but the same result for 2024.
The ASX200 ended the week over 1% higher after posting fresh all-time highs on Tuesday. The energy and Utilities sectors advanced over 4%, while the tech, real estate, and consumer discretionary sectors were the only three out of the 11 to lose ground. Under the hood, the gold and uranium miners stood out in the winner's enclosure while lithium stocks continued to decline - a theme that is not being mirrored in the United States with Albemarle (ALB US) up nearly 50% from its recent lows; elsewhere, cracks appeared in parts of the high-flying tech stocks. Company AGM’s as expected, threw up some volatility on the stock level:
Overseas indices ended the week poorly, with the post-election rally losing steam. The Dow ended over 300-points, while the NASDAQ led the decline, down 2.4%. European equities fared better, with the EURO STOXX 50 slipping 0.8 while the FTSE closed down just 0.1%. Declines in pharmaceutical stocks weighed on the Dow and the S&P 500, after Trump said he planned to nominate vaccine sceptic Robert F. Kennedy Jr. to lead the U.S. Department of Health and Human Services.
China’s much anticipated release of further stimulus has underwhelmed, or at least it hasn’t delivered a positive surprise. The package worth 6 trillion yuan ($US1.26 trillion) + another 4 trillion yuan in a special bond facility is designed to help China’s leveraged local governments restructure their finances. In simple, terms, the centralised Government is backstopping local Governments so they can be more pro-growth in their decisions rather than worrying about big piles of debt. The amount and structure of the vehicle was largely well known, and while we finally got a number to attach to it, it was very much aligned with what had been leaked i.e. no great positive shock.
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.
Last week was a choppy affair for the ASX200, dominated by Tuesdays sharp-sell off as bond yields rallied to 3-month highs with credit markets reducing the number of rate cuts they expect over the next year. The index finally closed down 0.87% on broad based selling with consumer staples +0.02% the only sector managing to eke out a gain while the tech sector took the wooden spoon retreating ~4%. On the stock level, except for a strong performance by the gold miners, it was another mixed bunch of winners & losers
The ASX200 ended a volatile and tough week, down 2.76% hitting a 100-day low on Friday. The Fed was the catalyst after cutting interest rates by 0.25% on Wednesday night, but at the same time, it moved the proverbial goalposts in terms of the future path in 2025. The Fed revised its outlook for rate cuts in 2025, indicating two reductions, down from the four previously forecasted in September.
The ASX200 ended the second week of December down by 1.48%, with the tech sector leading the retreat, tumbling by 5.7%. This was accompanied by real estate, financials, and industrials, which all declined by around 2%. The consumer staples and materials sectors were the only pockets to close up for the week, and they both advanced less than 0.1%. On the stock front, we saw some standout performance reversion from trends of 2024:
The ASX200 ended the first week of December down just 0.2%, with the real estate sector the main drag, falling 2.65% following the sell-down of $1.9bn worth of sector/market heavyweight Goodman Group (GMG) stock. Conversely, IT and consumer discretionary sectors were best on the ground. The gold names dominated the winner's enclosure after Northern Star's (NST) $5bn takeover of De Grey Mining (DEG), while lithium and ESG continued to decline.
The ASX200 ended the week up +0.5% and +3.38% for the month, and an even more impressive +3.9% when we include the chunky dividends in November. Through the penultimate month of the year, tech led the charge, advancing over 10%, while the materials and energy sectors were the only two to finish lower; it was a case of different month, but the same result for 2024.
The ASX200 ended the week over 1% higher after posting fresh all-time highs on Tuesday. The energy and Utilities sectors advanced over 4%, while the tech, real estate, and consumer discretionary sectors were the only three out of the 11 to lose ground. Under the hood, the gold and uranium miners stood out in the winner's enclosure while lithium stocks continued to decline - a theme that is not being mirrored in the United States with Albemarle (ALB US) up nearly 50% from its recent lows; elsewhere, cracks appeared in parts of the high-flying tech stocks. Company AGM’s as expected, threw up some volatility on the stock level:
Overseas indices ended the week poorly, with the post-election rally losing steam. The Dow ended over 300-points, while the NASDAQ led the decline, down 2.4%. European equities fared better, with the EURO STOXX 50 slipping 0.8 while the FTSE closed down just 0.1%. Declines in pharmaceutical stocks weighed on the Dow and the S&P 500, after Trump said he planned to nominate vaccine sceptic Robert F. Kennedy Jr. to lead the U.S. Department of Health and Human Services.
China’s much anticipated release of further stimulus has underwhelmed, or at least it hasn’t delivered a positive surprise. The package worth 6 trillion yuan ($US1.26 trillion) + another 4 trillion yuan in a special bond facility is designed to help China’s leveraged local governments restructure their finances. In simple, terms, the centralised Government is backstopping local Governments so they can be more pro-growth in their decisions rather than worrying about big piles of debt. The amount and structure of the vehicle was largely well known, and while we finally got a number to attach to it, it was very much aligned with what had been leaked i.e. no great positive shock.
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.
Last week was a choppy affair for the ASX200, dominated by Tuesdays sharp-sell off as bond yields rallied to 3-month highs with credit markets reducing the number of rate cuts they expect over the next year. The index finally closed down 0.87% on broad based selling with consumer staples +0.02% the only sector managing to eke out a gain while the tech sector took the wooden spoon retreating ~4%. On the stock level, except for a strong performance by the gold miners, it was another mixed bunch of winners & losers
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