Pre-Open Data
Key Data for the Week
Australian Market
The Australian sharemarket closed 1.3% higher on Monday, with all the major sectors besides Utilities finishing stronger. The Materials sector outperformed, lifting 3.4%, as increases in the price of gold, iron ore and copper led to notable gains. Fortescue Metals Group added 7.9%, Sandfire Resources lifted 7.7% and OZ Minerals recorded a 4.5% gain.
The Industrials sector was the second-best performer on the market yesterday, adding 1.2%. Positive news regarding the COVID-19 scare in Sydney sent the transportation industry higher, with Sydney Airport climbing 1.0% and Auckland International Airport improving 0.3%.
Global litigation funder, Omni Bridgeway, soared 9.0% after it recognised a $94 million income from the Wivenhoe settlement. This income is inclusive of reimbursed costs, project management fees and commissions. The company also expect a further $18 million in additional income to come from this settlement.
Commonwealth Bank was the best of the big four banks, up 1.3%, in what was a mixed day of trade in the Financials sector. NAB and Westpac both closed the session over 1.0% higher, while ANZ lost 1.3%.
The Australian futures market points to a 0.73% fall today, driven lower by weaker overseas markets.
Overseas Markets
European sharemarkets closed at record highs on Monday, buoyed by gains in the Materials sector. As a result of the surging commodity prices, London listed BHP Group and Rio Tinto added 1.6% and 2.1% respectively. The Financials sector also finished higher, with Barclays PLC gaining 2.2%, BNP Paribas adding 1.9% and ING Groep lifting 1.8%. The pan-European STOXX 600 index recorded a gain of 0.1%, closing at a record high.
The shift towards value stocks caused the Information Technology sector, which is more growth orientated, to shed 1.4%. German semi-conductor producer Infineon Technologies lost 2.9% and ASML Holding slumped 4.8%.
US sharemarkets closed lower overnight as inflationary scares led to a large sell-off in the Information Technology sector. Sector giants Amazon and Alphabet lost 3.1% and 2.4% respectively, while Apple closed the session 2.6% lower. Electric vehicle companies also weakened the indices, with Tesla losing 6.4% and Fisker slumping to a 9.0% loss.
By the close of trade, the Dow Jones closed 0.1% lower and the S&P 500 fell 1.0%, while the NASDAQ lost 2.6%.
CNIS Perspective
COVID may have given Australia its first recession in nearly 30 years, but it has also subsequently produced some record recovery data as well.
Business conditions and confidence both hit fresh highs in April, pointing to ongoing jobs growth and a continued recovery in business investment. Importantly to note, this comes off the back of the expiry of JobKeeper at the end of March.
This is its highest reading since the survey started in 1996.
Capacity utilisation also hit new highs in April, which is associated with increases in business investment, jobs and inflationary pressures. Forward orders also climbed to a new high in April, pointing to a solid pipeline of work.
Business conditions and confidence will continue to be supported by low interest rates and tax incentives and no doubt the Budget tonight will also provide a boost.
Should you wish to discuss this or any other investment related matter, please contact your Investment Services Team on (02) 4928 8500.
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