Pre-Open Data
Key Data for the Week
- Monday – CHINA – Industrial Production
- Monday – CHINA – Retail Sales
- Tuesday – AUS – RBA Meeting Minutes
- Tuesday – EUR – Trade Balance
- Tuesday – UK – Unemployment Rate
- Wednesday – AUS – Wage Price Index
- Wednesday – UK – Consumer Price Index
- Thursday – AUS – Unemployment Rate
- Friday – AUS – Retail Sales
- Friday – EUR – Consumer Confidence
- Friday – UK – Retail Sales
Australian Market
The Australian sharemarket rose 0.5% on Friday, however, fell 0.9% for the week as concerns of inflation weighed on investor sentiment.
The Financials sector was strengthened by the big four banks; Commonwealth Bank rose 0.6% to close at a new record high, Westpac added 0.9%, while ANZ and NAB both lifted 1.0%. Fund managers outperformed; Magellan Financial Group and Australian Ethical Investment rallied 3.4% and 4.4% respectively.
The Materials sector underperformed following a drop in the price of iron ore; BHP lost 1.6%, Rio Tinto slipped 2.0% and Fortescue Metals fell 2.8%.
The Information Technology sector also weakened, weighed down by accounting software provider Xero, which fell 4.2%, to be down over 15% for the week, following weaker than expected earnings guidance on Thursday.
The Australian futures market points to a 0.68% rise today, driven by stronger overseas markets on Friday.
Overseas Markets
European sharemarkets closed higher on Friday, led by gains from energy, consumer and technology stocks. The Financials sector also outperformed; Barclays and Deutsche Bank both added 1.6%. Airbus and Siemens Gamesa Renewable Technologies rallied 3.7% and 3.2% respectively. For the week, the broad based STOXX Europe 600 slipped 0.5%.
US sharemarkets were also stronger on Friday, following Thursday’s gains which snapped a three-day losing streak. Gains were across the market with all sectors closing higher, led by Energy and Information Technology. Alphabet, Amazon, Apple and Microsoft all rose between 1.9% and 2.4%, while cybersecurity companies CrowdStrike and Fortinet outperformed, up 3.7% and 3.8% respectively.
For the week, the Dow Jones lost 1.1%, the S&P 500 fell 1.4% and the NASDAQ slipped 2.3%.
CNIS Perspective
Businesses are embracing the digital transformation and adopting new ways of operating with more people working remotely and on their own devices, accessing sensitive information on phones, laptops and even wearables. This results in moving data and applications onto cloud servers, which also creates more endpoints for potential cyber-attacks. The traditional perimeter security solutions are no longer effective where the server in an office is accessed by a desktop computer protected by a firewall.
Ransomware attacks are becoming more common, where an attacker typically seizes control of a victims’ data or computer systems, only to release it if they pay a fee. A recent attack on the US pipeline caused East Coast fuel prices to surge last week, which only ended when a US$5 million payment was made to the hackers, allowing a restart to operations.
This prompted President Biden to sign an executive order to bolster US cybersecurity in the wake of this recent attack, as well as other attacks on US infrastructure such as the SolarWinds hack in December last year.
As companies increase their digital footprint and workplace flexibility, adding to the potential endpoints for cloud server attacks, IT security spending remains critical to protecting companies’ intellectual property and maintaining their reputation. This will ensure cybersecurity remains at the forefront of business plans and one of the least likely items to be trimmed from budget requirements.
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.
