Pre-Open Data
Key Data for the Week
Key economic data released this week:
- Wednesday – CHINA – Consumer Price Index rose 1.0% for January, while on an annual basis fell 0.3%.
- Wednesday – US – Consumer Price Index rose 0.3% in January. On an annual basis, CPI increased 1.4%.
- Thursday – US – Initial Jobless Claims
Australian Market
The Australian sharemarket rose 0.5% yesterday, with all sectors except Consumer Discretionary closing higher. The Information Technology sector was the best performer, led by Afterpay and Zip Co, which rose 4.2% and 12.2% respectively, to both close at record highs.
Commonwealth Bank slipped 1.5% after the company released its 1HFY21 results, which saw cash profit down 10.8% to $3.9 billion, while the bank also declared a $1.50 dividend. ANZ and NAB were down 0.4% and 0.2% respectively, while Westpac bucked the trend to rise 0.3%.
Crown lost 3.4% as it resumed trade following an inquiry into the company which found it allowed money laundering through subsidiaries' bank accounts and failed to act when notified. Three directors resigned after a damning report on Tuesday, which found the company unfit to run a Sydney casino.
Building contractor CIMIC Group slumped 17.1% after the company reported revenue was down 20%.
The Health Care sector rose, with CSL and Ramsay Health Care up 0.9% and 0.2% respectively, while Sonic Healthcare fell 0.4%.
The Australian futures market points to a 0.44% fall today, driven by weaker overseas markets overnight.
Overseas Markets
European sharemarkets were weaker on Wednesday, with the broad based STOXX Europe 600 down 0.2%. Vestas Wind Systems slipped 3.9% despite the company’s release of strong earnings on Tuesday, which saw the company announce Q4 revenue of €4.27 billion and Q4 net income of €566 million.
US sharemarkets were mostly lower overnight with the Consumer Discretionary sector the weakest performer, while Energy and Communication Services outperformed. Enphase Energy rose 1.0% after the company reported Q4 earnings above expectations. Information Technology stocks were mixed; Alphabet, Facebook and Spotify all rose between 0.5% and 0.9%, while Microsoft and Apple fell 0.4% and 0.5% respectively.
By the close of trade, the Dow Jones rose 0.2% and the S&P 500 was flat, while the NASDAQ fell 0.3%.
CNIS Perspective
Yesterday saw the release of the Westpac/Melbourne Institute Index of Consumer Sentiment, which confirmed just how much of a negative effect the COVID-19 virus continues to have on some areas of Australia.
While the overall index has recovered significantly since the initial outbreak last year, suggesting consumers remain optimistic about the economic recovery, the results were mixed across the different states.
The latest results saw NSW consumer sentiment increase 3.5% and Victoria rise 4.0% as they made progress in containing the virus. Victoria has now registered the strongest recovery of all the states, reflecting the progress it has made in managing the pandemic after its second extended lockdown in mid-2020.
However, in stark contrast, consumer sentiment declined 8.3% in Queensland and fell 7.8% in Western Australia, after both states reintroduced brief lockdowns.
Consumer confidence, and ultimately consumer spending, is critical for economic growth and this latest data shows just how important remaining out of lockdown has become.
Should you wish to discuss this or any other investment related matter, please contact your Investment Services Team on (02) 4928 8500.
Disclaimer
The material contained in this publication is the nature of the general comment only, and neither purports, nor is intended to be advice on any particular matter. Persons should not act nor rely upon any information contained in or implied by this publication without seeking appropriate professional advice which relates specifically to his/her particular circumstances. Cutcher & Neale Investment Services Pty Limited expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale Investment Services Pty Limited or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication.
Cutcher & Neale Investment Services Pty Limited ABN 38 107 536 783 is a Corporate Authorised Representative of Cutcher & Neale Financial Services Pty Ltd ABN 22 160 682 879 AFSL 433814.
