Pre-Open Data
Key Data for the Week
- Monday – UK – Rightmove House Prices
- Tuesday – UK – Public Sector Borrowing
- Wednesday – EUR – Consumer Confidence
- Wednesday – US – New Home Sales
- Wednesday – UK – Consumer Price Index
- Thursday – US – Markit Manufacturing PMI
- Friday – UK – Retail Sales
- Friday – CHINA – Current Account
Australian Market
The Australian sharemarket gained 0.6% on Friday, as all sectors except Consumer Staples and Telecommunications advanced. The Energy sector led the gains, up 2.2%, after a rebound in the oil price. Over the week, the local ASX 200 added 3.3%.
Banking stocks were higher on Friday; Commonwealth Bank, ANZ and NAB all gained between 0.1% and 0.2%, while Macquarie Bank outperformed, up 1.7%. However, Westpac slipped 0.1%. Insurers advanced; Suncorp lifted 2.3% and QBE Insurance rose 1.7%, while Insurance Australia Group closed up 0.7%.
The Materials sector lifted 1.3%, boosted by mining heavyweights; Fortescue Metals posted a 2.2% gain and Rio Tinto added 1.6%, while BHP rose 1.2%. Gold miners were mixed; Newcrest Mining eased 0.8%, while Evolution Mining and Northern Star Resources added 0.5% and 1.4% respectively.
Buy-now-pay-later providers lifted the Information Technology sector. Afterpay owner Block rallied 7.2%, while Zip Co added 1.6%. Software company WiseTech Global gained 3.3%, while accounting software provider Xero slipped 0.7%.
The Australian futures market points to a 0.81% rise today.
Overseas Markets
European sharemarkets closed higher on Friday, posting their strongest week since November 2020. Banking stocks were mixed; HSBC and Barclays Bank both slipped 0.7%, while Deutsche Bank and Lloyds Bank added 1.2% and 2.4% respectively. Semiconductor companies posted strong gains; Infineon Technologies lifted 1.5%, while STMicroelectronics gained 2.8%. By the close of trade, the German DAX and UK FTSE 100 rose 0.2% and 0.3% respectively, while the STOXX Europe 600 closed up 0.9%.
US sharemarkets advanced on Friday, as all sectors except Utilities posted gains. The Information Technology sector was the strongest performer; NVIDIA lifted 6.8% and Apple gained 2.1%, while Microsoft and Alphabet rose 1.8% and 1.6% respectively. Cybersecurity companies also boosted the Information Technology sector; Fortinet closed up 5.4% and CrowdStrike added 1.9%. By the close of trade, the Dow Jones closed up 0.8%, while the S&P 500 and NASDAQ gained 1.2% and 2.1% respectively.
CNIS Perspective
As the assault on Ukraine stretches on, the impacts to its ability to produce the volume of tradeable agricultural commodities the global market has grown to depend on will become more significant.
With a climate similar to that of the ‘corn belt’ in the United States, a substantial part of Ukraine’s most productive agricultural land is in its eastern regions, exactly those parts most vulnerable to Russian attacks.
Farmers plant most crops in April and May, except wheat and rapeseed, which are currently in their mid-season growth phase.
Not only will an ongoing war lead to fewer planted acres with the disruption, it’s likely that farmers will be encouraged to plant and harvest crops for local consumption, rather than corn, sunflower seed and rapeseed for export.
With Ukraine representing the world’s largest producer of vegetable oils, seventh largest producer of corn and eighth largest producer of wheat, the upcoming supply shortage is clear and concerning.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management Team on (02) 4928 8500.
Disclaimer
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