Outlook for the economy is more positive
Australian consumer inflation is 5.1% and below the 5.6% consensus In January, unemployment rose marginally to 3.7% Australian stocks in the consumer discretionary sector are benefitting from the US positive retail sales outlook. A week in the data The week just gone was a busy one in economic data points. They provided an insight into…
Financials in the spotlight
Calling a top in the market CBA reported a record $5.15b AUD half-yearly profit on Wednesday 15th February, almost AUD$400m higher than a year earlier. Rising interest rates boost net interest margins against the backdrop of a buoyant economy and record-low unemployment that is shoring up the credit portfolio. In reporting the excellent results, Chief…
The Special Petroleum Reserve
Dual-pronged attack on inflation Given how vital oil and oil products are to our daily lives, policymakers pay close heed to changes in the prices of fossil fuels. With the massive overhaul of international crude oil supply lines following the sanctions on Russian exports, the Federal Reserve required emergency assistance to fill the void and…
Commodity Dealing Is on the Rise
China has signalled an intention to reopen the Australian market to Chinese buyers. Newmont Mining Corporation NYSE:NEM (NEM) signals interest in Australia’s largest gold miner, Newcrest Mining Limited ASX:NCM (NCM) Could large M&A and resource deals be signalling a deeper trend in resources? Commodity deals on the rise Following the recent downward trajectory and near…
Marking Out the New Playing Field in Technology
Alphabet, Inc NASDAQ:GOOG (GOOG) shares were down around 7% overnight on a poorly received AI conference. Companies expected to benefit from the AI boom immediately were steady and higher, including NVIDIA Corp NASDAQ:NVDA (NVDA), up 0.1%. The winners and losers of this first wave in the boom in AI products and applications are being drawn…
A Resurgent Dollar
The US Dollar index (DXY) is up 1.3% in February. The DXY had fallen for four consecutive months before this improvement in February. Oil markets are down, providing a pathway to more growth in the technology sector. Hitherto weaker US Dollar Following the announcement of a slower rate-hike pathway by the US Federal Reserve, below…
The Market Is Itching to Get Going
Meta Platforms, Inc NASDAQ:META (META) is up 30% over the last fortnight. The NASDAQ composite is up 6% over the same period. Oil markets are down 10%, providing a pathway to more growth in the technology sector. The wrap on the week A blockbuster 2022 Q4 earnings beat by META caught the market by surprise and…
Inflation – Why worry?
Tuesday 7th February, the Reserve Bank of Australia (RBA) raised borrowing and lending rates by a quarter of one per cent Overheating inflation raises the probability of larger rate hikes in the future The strength in exports is serving to defend the Aussie dollar from the steeper cost of imports From the US President Joe…
A Wobble in Tech
Microsoft Corp NASDAQ:MSFT (MSFT) reported earnings Tuesday MSFT reported the slowest quarterly sales growth in more than six years The slowdown in sales growth and the slimmer margins for MSFT relative to prior quarters are causing concern for international technology investors. The calendar year 2022 US earnings season is upon us, and the rationale behind…
Happy new year
Chinese large market capitalisation ETF, the iShares China Large-Cap ETF ASX:IZZ (IZZ), is up nearly 10% this year. Alibaba Group Holdings Ltd NYSE:BABA (BABA) has risen over 35% in 2023. Chinese stocks have quickly recovered the ground they lost during the zero-COVID policy and are reattracting foreign investment by taking advantage of a strong but…
