The ASX200 advanced another +0.85% last week, closing less than 1% below its all-time high. The upside momentum has slowed slightly but investors appetite remains into any semblance of a dip. Over the week only 5 of the 11 sectors advanced but gains of more than 2% by the real estate and financial sectors was more than enough to offset dips of over 1% by the tech and consumer discretionary names. The week was company dominated with economic news relatively thin on the ground
Jerome Powell signaled in his speech from Jackson Hole that interest rate cuts lay ahead, although he didn’t provide any details on when or how big the moves would be. The US credit markets are still pricing in 8 rate cuts by this time next year, with the FED Chair’s much-anticipated speech having little impact on expectations for the path of rate cuts into/through 2025. It’s a shame things aren’t as clear-cut for Michele Bullock and the RBA.
Most major overseas indices finished the week in a positive fashion. In Europe, the EURO STOXX 50 advanced +0.7%, although the UK FTSE did slip -0.43%. in the US. The S&P500 rose on Friday as investors advanced +0.2% to finish the best week of 2024 by adding to the recovery from the markets’ violent rout at the start of August. Following this week’s comeback, the S&P 500 is now just 2% away from its mid-July record high. Earnings continue to show strength as the latest reports trickle in, and around 93% of S&P500 companies had posted results as of Friday afternoon, according to FactSet. Of those, more than 78% have surpassed Wall Street’s expectations
The ASX200 experienced yet another rollercoaster of a week, finally ending down -2.1%, but it was much worse before Friday's strong +1.25 broad-based bounce. However, the bulls mustn't get carried too away after the end-of-week jump; the index has only recovered around 30% of its sharp losses since the unwinding of the Yen “Carry Trade” sent shock waves through financial markets. Reporting season is starting to have an impact on major over/underperformers, but it's likely to be far more pronounced next week as things really get underway this week. Only the Utilities Sector finished last week in positive territory, with the Energy, Tech and Financial Sectors weighing heavily on the main index:
Overseas equities fell away on Friday night as recession fears increased, with the EURO STOXX 50 -2.7% and German DAX -2.3% leading the declines. In the US, it was another brutal night, with the S&P500 plunging 1.8% and the Dow over 600 points after the jobs report sent investors running for cover. Some tech megacap names saw heavy losses during the day after Amazon’s 2nd quarter results sparked investor concerns about Big Tech’s blowout levels of artificial intelligence-related (AI) capital spending. The e-commerce giant slid 8.8% after missing analyst estimates and issuing a disappointing forecast.
The week started with the news that Joe Biden had finally stepped aside for Kamala Harris to run against Trump; the odds of a Republican victory have shortened, but the Don remains the clear favourite. However, 100 days is a massive time in politics; everyone is now talking about Kamala Harris having a chance of victory just two weeks after Trump was shot in Pennsylvania. On Wednesday night, US tech stocks unravelled as earnings missed lofty expectations, e.g. Tesla shares (TSLA US) plunged over 12% on weaker-than-expected results, including a 7% drop in auto revenue year-on-year and Alphabet (GOOG US) suffered its worst day since January, falling 5% after YouTube advertising revenue fell below expectations. The NASDAQ finished the week down 2.6%, while the Russell 2000 small caps gained 3.5%!
The ASX200 managed to mildly higher last week, but it certainly felt worse after Friday's sharp drop, and there is more to come on Monday. While the press rotates its coverage between the largest IT outage in history and if/when Joe Biden will exit the November presidential race, the stock market had its own pronounced rotation underway. As financial markets priced in a Fed interest rate pivot come September, investors decided it was time to rejig portfolios in earnest – something MM has been discussing for a few weeks. On the ASX, we saw the rate of the sensitive/defensive sectors advance, led by real estate, at +1.7%, while the Materials and Tech Sectors dropped 2.2% and 1.8%, respectively. The moves were more pronounced on the stock level
The ASX200 finally popped to fresh all-time highs on Friday, and it looks set to deliver another stellar performance for July—we’re less than halfway through, and it's already up +2.5%. Over 80% of the main board helped lift the index towards the psychological 8000 level, with the rate-sensitive name leading the advance while the resources stocks continued to rein in the gains.
The ASX200 ended the first week of July up +0.7%, an encouraging performance considering the dip on Monday/Tuesday. The Energy and Materials Sectors led the gains, which weren’t broad-based, with seven of the market's eleven main sectors closing lower. At MM, we haven’t hidden our view that these two sectors are set to outperform through FY25. However, we’re very conscious that one week doesn’t change a trend—the previously high-flying tech and utilities sectors were the market's worst-performing sectors last week
The ASX200 finished the week down 0.4% but still managed to advance +0.9% for June; overall, local equities experienced another choppy week dominated by moves on the stock/sector level. However, while the index appeared to have experienced a fairly quiet week, it was a very different story in credit markets following the hotter-than-expected CPI spring on Wednesday:
Jerome Powell signaled in his speech from Jackson Hole that interest rate cuts lay ahead, although he didn’t provide any details on when or how big the moves would be. The US credit markets are still pricing in 8 rate cuts by this time next year, with the FED Chair’s much-anticipated speech having little impact on expectations for the path of rate cuts into/through 2025. It’s a shame things aren’t as clear-cut for Michele Bullock and the RBA.
Most major overseas indices finished the week in a positive fashion. In Europe, the EURO STOXX 50 advanced +0.7%, although the UK FTSE did slip -0.43%. in the US. The S&P500 rose on Friday as investors advanced +0.2% to finish the best week of 2024 by adding to the recovery from the markets’ violent rout at the start of August. Following this week’s comeback, the S&P 500 is now just 2% away from its mid-July record high. Earnings continue to show strength as the latest reports trickle in, and around 93% of S&P500 companies had posted results as of Friday afternoon, according to FactSet. Of those, more than 78% have surpassed Wall Street’s expectations
The ASX200 experienced yet another rollercoaster of a week, finally ending down -2.1%, but it was much worse before Friday's strong +1.25 broad-based bounce. However, the bulls mustn't get carried too away after the end-of-week jump; the index has only recovered around 30% of its sharp losses since the unwinding of the Yen “Carry Trade” sent shock waves through financial markets. Reporting season is starting to have an impact on major over/underperformers, but it's likely to be far more pronounced next week as things really get underway this week. Only the Utilities Sector finished last week in positive territory, with the Energy, Tech and Financial Sectors weighing heavily on the main index:
Overseas equities fell away on Friday night as recession fears increased, with the EURO STOXX 50 -2.7% and German DAX -2.3% leading the declines. In the US, it was another brutal night, with the S&P500 plunging 1.8% and the Dow over 600 points after the jobs report sent investors running for cover. Some tech megacap names saw heavy losses during the day after Amazon’s 2nd quarter results sparked investor concerns about Big Tech’s blowout levels of artificial intelligence-related (AI) capital spending. The e-commerce giant slid 8.8% after missing analyst estimates and issuing a disappointing forecast.
The week started with the news that Joe Biden had finally stepped aside for Kamala Harris to run against Trump; the odds of a Republican victory have shortened, but the Don remains the clear favourite. However, 100 days is a massive time in politics; everyone is now talking about Kamala Harris having a chance of victory just two weeks after Trump was shot in Pennsylvania. On Wednesday night, US tech stocks unravelled as earnings missed lofty expectations, e.g. Tesla shares (TSLA US) plunged over 12% on weaker-than-expected results, including a 7% drop in auto revenue year-on-year and Alphabet (GOOG US) suffered its worst day since January, falling 5% after YouTube advertising revenue fell below expectations. The NASDAQ finished the week down 2.6%, while the Russell 2000 small caps gained 3.5%!
The ASX200 managed to mildly higher last week, but it certainly felt worse after Friday's sharp drop, and there is more to come on Monday. While the press rotates its coverage between the largest IT outage in history and if/when Joe Biden will exit the November presidential race, the stock market had its own pronounced rotation underway. As financial markets priced in a Fed interest rate pivot come September, investors decided it was time to rejig portfolios in earnest – something MM has been discussing for a few weeks. On the ASX, we saw the rate of the sensitive/defensive sectors advance, led by real estate, at +1.7%, while the Materials and Tech Sectors dropped 2.2% and 1.8%, respectively. The moves were more pronounced on the stock level
The ASX200 finally popped to fresh all-time highs on Friday, and it looks set to deliver another stellar performance for July—we’re less than halfway through, and it's already up +2.5%. Over 80% of the main board helped lift the index towards the psychological 8000 level, with the rate-sensitive name leading the advance while the resources stocks continued to rein in the gains.
The ASX200 ended the first week of July up +0.7%, an encouraging performance considering the dip on Monday/Tuesday. The Energy and Materials Sectors led the gains, which weren’t broad-based, with seven of the market's eleven main sectors closing lower. At MM, we haven’t hidden our view that these two sectors are set to outperform through FY25. However, we’re very conscious that one week doesn’t change a trend—the previously high-flying tech and utilities sectors were the market's worst-performing sectors last week
The ASX200 finished the week down 0.4% but still managed to advance +0.9% for June; overall, local equities experienced another choppy week dominated by moves on the stock/sector level. However, while the index appeared to have experienced a fairly quiet week, it was a very different story in credit markets following the hotter-than-expected CPI spring on Wednesday:
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