Pre-Open Data
Key Data for the Week
- Monday – EUR – Markit Manufacturing PMI
- Monday – UK – Rightmove House Prices
- Tuesday – US – Markit Manufacturing PMI
- Wednesday – AUS – Wage Price Index
- Wednesday – EUR – Consumer Price Index
- Thursday – AUS – Private Capital Expenditure
- Thursday – US – Gross Domestic Product
- Friday – EUR – Consumer Confidence
- Friday – US – Personal Spending
Australian Market
The Australian sharemarket eased 1.0% on Friday, following weaker US sharemarkets in the previous session. All sectors closed lower, with the Utilities sector the main laggard, down 4.1%. Over the week, the local ASX 200 eked out a 0.1% gain.
The Financials sector fell 0.9% on Friday, as all major banks except Westpac (0.2%) finished weaker; Commonwealth Bank was the worst performer, down 1.1%, while NAB and ANZ lost 0.9% and 0.2% respectively. Fund managers were mixed; Australian Ethical Investment gave up 4.9% and Challenger slipped 0.2%. However, Magellan Financial Group rallied 18.5% after the company reported higher-than-expected first half profit and a 12% increase in average funds under management, while also announcing a proposed on-market share buyback.
Gold miners advanced as gold reached its highest price in eight months; Newcrest Mining lifted 2.2%, while Evolution Mining and Northern Star Resources both added 1.5%.
The Australian futures market points to a 0.72% fall today, driven by weaker overseas markets.
Overseas Markets
European sharemarkets weakened on Friday. Travel & leisure stocks eased; International Airlines Group gave up 2.9% and easyJet fell 2.3%, while Lufthansa closed down 1.8%. Banking stocks were also lower; Lloyds Bank and Barclays Bank shed 0.1% and 0.8% respectively, while Credit Suisse and Deutsche Bank both fell 0.9%.
By the close of trade, the UK FTSE 100 slipped 0.3% and the STOXX Europe 600 fell 0.8%, while the German DAX gave up 1.5%. Over the week, the STOXX Europe 600 closed down 1.9%.
US sharemarkets were also lower on Friday, as all sectors except Consumer Staples closed in the red. The Information Technology sector was the main underperformer, down 1.1%; NVIDIA and Fortinet lost 3.5% and 1.8% respectively, while Alphabet slipped 1.4% and Microsoft gave up 1.0%. However, Netflix bucked the trend to gain 1.2%.
Semiconductor companies traded lower; Taiwan Semiconductor Manufacturing Co slid 0.4%, while Intel sunk 5.3% after the company announced no major improvements to profit margins are expected to be recorded until 2025.
The Health Care sector posted a 0.8% decline; Johnson & Johnson closed 1.1% lower and Danaher Corporation fell 0.9%, while UnitedHealth Group slipped 0.5%. By the close of trade, the Dow Jones and S&P 500 both closed down 0.7%, while the NASAQ slid 1.2%. Over the week, the major US indexes fell between 1.6% and 1.8%.
CNIS Perspective
COVID restrictions are loosening around the world, with “Fortress” Australia preparing for a wave of overseas tourists as it welcomes double vaccinated visitors from today, following the removal of strict border controls throughout the pandemic. There will be 56 flights landing in Australia today, still only a fraction of the pre-COVID roster of more than 300 arrivals.
Travel in and out of the country remains about 90% down on pre-COVID levels. Australian Bureau of Statistics data shows there were 196,000 overseas arrivals in December, versus 1.9 million two years earlier. Australia is among the world’s most immunised countries against COVID-19, with 94% of people over 16 fully vaccinated.
Tourism was one of the fastest growing sectors in Australia’s economy before the pandemic, contributing $45 billion in 2019. The industry has been hit hard during the pandemic, with businesses being forced to shut down and tour operators leaving the industry. While many operators who rely on foreign tourists are hopeful, it’s clear that there is no simple return to pre-pandemic times.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management Team on (02) 4928 8500.
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