Rupal Bhansali, CIO at Ariel Investments didn't hold back when talking about stimulus that has driven U.S. markets over the last decade. Plato's Dr Peter Garden talk iron ore and yield and the rise of Vaxxas, a skin patch vaccination delivery system is the latest conquest in med-tech.
The theme of today's experts has been one of markets getting ahead of themselves. Is the fear of missing out drawing in investors instead unnecessarily?
Will the V shape recovery turn into a W and will the ANZAC 'Bubble Alliance' show the world how its done
The markets took a break today from what has been a largely interrupted run since March. The talk around a Trans Tasman Bubble continues gather steam while energy was also in focus today.
Buy in May is now all the rage as the ASX hits an 11 week high. Eclipx, a car leasing business that looks after corporate and individuals reports of returning to normal as investors speculate on the future of Hong Kong.
The ASX finished above 5600 points after gaining 2.16% where the broad based rally providing further fuel to recovery story that has industries in health, construction and technology eyeing a return to normal sooner rather than later. The jobkeeper accounting bungle continues to dominate political chatter while China seeks to end its Hong Kong problem amid diplomatic tensions with the United States and little old Australia.
Australia on the improve as iron ore comes into focus with China and the U.S. resuming trade hostilities
China's image as a world power continues to be battered by a U.S. president very keen to remind voters who caused the COVID-19 mess. Iron ore becomes the latest trade issue for Australia and the local economy eyes stability as the Federal Government admits it might have an extra $60 billion for the jobkeeper program.
Just like yesterday, the local market went in the opposite direction of the Wall St lead in; today finding its way down by around half a percent. Afterpay continued its tear – up 2.7% to a record high after revealing that it had five million active users in the US, while Steadfast was up 7.6% on news that April earnings had not been adversely affected by COVID-19. Meanwhile RBA Governor Philip Lowe seemed to rule out negative interest rates once and for all, saying they were “extraordinarily unlikely” and “the costs exceed the benefits”. This put pressure squarely back on the government to ramp up spending, on the same day that the Treasury Secretary forecast a U-shaped recovery. We’re in this for a while yet folks…
The local market came home strongly after a negative lead in from US with the tech sector leading the gains - Afterpay up 2% after last week’s record high and prepaid-card provider EML up 12%. Macquarie analysts reaffirmed their outperform rating for Aussie iron ore producers on the back of an expected post-pandemic surge in Chinese demand but miners were down overall for the day. Meanwhile, no surprises from the ABS retail turnover numbers – down 18% in April – a record drop for the series.
A positive day on the local market as commodities and the travel sector followed the overnight lead from Wall St. Commodities liked the news of China resuming construction activity - iron ore topped US$96 a tonne - while the airlines rose on news of successful trials of the Moderna COVID-19 vaccine. Meanwhile the RBA minutes added a touch of gloom with the forecast that inflation will remain below its two percent target band for the "next few years". Our stock of the day is Elders Limited (ELD).
It’s back to the shiny stuff as escalating US-China trade tensions push gold to a seven-year high. Commodities the story of the day with iron ore going on a tear as well. Positive signs for oil with a 2-month high on the eve of June expiry and the four frontrunning Virgin suitors emerge with Cyrus Capital the leading contender thanks to a previous stake in Virgin America with Richard Branson. Mean it was whoa!! for WOA, the Aussie meat-free protein foodtech - up 135% for the day!
Westpac filed documents in the Federal Court this afternoon admitting to 23 million anti-laundering breaches redefining what us media types call, 'taking out the trash.' Equities bounced at the open to close out a week where a surprise rival to a Qantas emerged in the form of Regional Express (REX) and the term, 'awakenings' is now an economic objective as opposed to a Robin Williams movie.
A sobering day for the local market with a below-consensus but still disastrous 6.2% headline unemployment rate with record high underutilisation rate. Meanwhile, an interesting night ahead in the US as the market assesses the full impact of Jerome Powell's speech from last night, in which he flagged a long recovery for the global economy.
Scutty's take on the RBNZ vs RBA (hint: it's like the All Blacks vs The Wallabies), the CBA's Q3 update and what to watch out for in tomorrow's employment data. Our stock of the day is Breville (BRG).
The Aussie market slides as consequences of second wave crystallise, with Treasurer Frydenberg warning another lockdown could be a $4 billion hit to the economy. Our stock of the day is Mesoblast (MSB).
Another rally on the Australian market, buoyed by Friday's US session. While the record-breakingly bad data sets keep coming, equity markets keep seemingly brushing them off. Our stock of the day is Cochlear (COH).
Markets remain buoyant ahead of US non-farm payrolls, investors expecting a horror number will lead to yet more stimulus. Scutty's take on the RBA Minutes plus our stock of the day - CSL.