Solid foundations in the tech sell-off
Stagflation fears are slowing the market to start the week. The S&P / ASX 200 is down by almost 1.5% on Tuesday. Fittingly, tech is taking the final few blows to 2022; on the positive side, crypto is displaying some solid foundations. Winding down In what is anticipated to be a slow week as businesses…
Stagflation fears
Several key Multi-National Corporations (MNCs) have announced slowing hires or deliberate retrenchments in 2022 and 2023. The IMF expects global growth to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. The Fed highlighted persistent service sector inflation on Wednesday and marginally raised the inflation outlook in the US. Costing the…
Is the US Dollar wave breaking?
Key US inflation readings came in lower than expected on Tuesday. The FOMC meets on Wednesday to decide on the present trajectory of US interest rates and, subsequently, the US dollar. The lower US dollar presents investing opportunities in developing economies and the mining sector at home. The US Dollar The broad basket consumer price…
A bumpy road or smooth sailing to finish the year?
After selling off last week, the US and Australia’s benchmark indices rebounded on Monday. International inflation, retail, business sentiment, and employment data points are being published this week. With inflation tapering, employment remains high, and with a bumper start to the holiday retail period, can the stock market finish on a high note this year?…
The good, the bad, and the ugly
On Wednesday, China signalled an end to zero COVID and commenced a mitigation policy. The Fed faces a difficult few days as inflation data is due on Tuesday, followed by a critical interest rate decision on Wednesday. Cold and still air over Northern Europe is causing power prices to surge. The Good China has finally…
Markets easily spooked by the Fed
Slight miss on Australian GDP expectations of 0.6% vs. the 0.7% forecast. Slumping Chinese exports, 8.7% lower than at this time last year. The US market sold off overnight and Chinese data out Wednesday morning is doing little to assuage some nervous investors. Oil and tech are feeling the brunt of the selling pressure. Oil…
Yield curve inversion steepens
Markets are becoming increasingly bound together, elevating risk. With investors so transfixed on the Fed’s rate policy and the challenges in the near-term investment cycle, capital markets are tightening. Money supply is reversing course despite a buoyant service sector, giving the market pause for thought on the Fed’s rate hike plans. Brakes are still being…
Market watchers transfixed on the Fed and China to be blindsided?
OPEC+ remain committed to a 2m barrel production cut over 12 months. Manufacturing orders from China are down 40%. Aus Q3 company profits are down 12.4% quarter over quarter, the most significant drop in over 14 years. Markets on Monday remain elevated over positive signalling from the Fed and China’s Central Committee. Rising tides lift…
Is there still room left to run in oil and gas stocks?
The energy benchmark ETF NYSE:XLE (XLE) is up over 60% this year. Australian energy stocks have been on a similar skyward run. Woodside Energy Group ASX:WDS (WDS) is higher by 64% from the start of the year, is there room left to run in Australian energy stocks? Year in the books WDS is up by…
World markets reassured in the wake of China briefing
The S&P / ASX 200 opened 0.3% higher on Tuesday, with Chinese protests dissipating peacefully. Raw material price pressures return with the northern hemisphere winter and threaten a European economic revival. The upward trajectory of the Aussie market remains doubtful as high commodity prices start impacting customer demand. COVID Fatigue Chinese protests across the major…
