Can gold ride the inflation wave again?
S&P/ASX 200 Materials ASX:^AXMJ (XMJ) is up 8.3% over the last 12 months. Australia’s largest gold miner, Newcrest Mining Ltd ASX:NCM (NCM), is down by 8.5% over the same period. Gold is often touted as a hedge against inflation; with the highest global inflation in 40 years, what has kept the lid on gold prices?…
Looking for a tech rebound
The S&P/ASX 200 Information Technology ASX:^AXJE (XJE) index is down 30% on the year. A combination of forces is pressuring technology stock valuations. What forces are holding down tech stock valuations, and what needs to happen for them to rise again? Inflation and tech Conventional financial theory leans heavily on the relationships between assets. When…
Energy markets finding a footing
Despite heavy selling to start the year in the energy markets, energy stocks are proving to be resilient. The push factors of China and supply loss are overcoming the drag of the economic outlook, higher US supply, and unseasonably mild weather. Despite energy markets falling considerably from their June 2022 highs, energy stocks have only…
A dual-speed economy
Struggling real estate and industrials may dent sectors sensitive to labour markets in the coming months. Sustained levels of inflation will continue to prop resources and energy company budgets. The separation in conditions between certain sectors of the economy may continue to widen into 2023. A dual-speed economy The economic outlook for the next 12…
Taking the sting out of the energy markets
Gas and power prices are down to start the year, and coal is trailing lower. Lower commodity prices are having a positive impact on debt and tech markets. Coordinated government policy on supply chain reorganisation and higher private production are starting to have a lasting effect on energy prices. Energy lower Oil prices have struggled…
Through the looking glass of 2023
Rates and technology stocks are stable at the opening. Currencies and commodities are following suit. Bank and resource stocks are lower at the open, anticipating systemic risk transmitting to the souring of credit portfolios and lower raw material demand. In the rear-view We’ve barely started the year, and the realities of 2022 are already beginning…
Bit of a rollercoaster ride
The S&P/ASX 200 reaches the finish line down 6.3% on the year. Despite some sectors ballooning and others crashing, on aggregate, we’re back where we started at the beginning of the year. While some sectors have thrived in 2022, others have fallen way behind. What might be in store for 2023? Winners The big resource…
A fair wind on the energy markets
The US benchmark Henry Hub gas futures for prompt delivery dipped over 11% this week before settling 7.5% lower than Monday. Woodside Energy Group ASX:WDS (WDS) is lower by 4.5% on Wednesday. Better than expected number of production outages resulting from the US polar blast over the Christmas weekend, strong US production and exports, and…
The big themes to close out the year
Limited economic data and trading hours in the week. Seasonally low volumes with the S&P / ASX 200 benchmark down 5.6% this year. China reopening and US interest rate direction hogs the limelight into the year’s end. Markets to start the week Yesterday the front part of the US Treasury yield curve rose. The 4-month…
A chill in the air and in the markets
Polar vortex is bringing severe cold to much of the United States After selling off on Monday in the US, markets are freezing up To warm up, what are some of the big positives for 2022? The Big Chill A polar blast is set to hit the US this week and bring sub-zero temperatures to…
