Pre-Open Data
Key Data for the Week
- Wednesday – AUS – Retail Sales rose 1.4% in March, above estimates for a 1.0% increase.
- Wednesday – UK – Consumer Price Index rose 0.3% in March. On an annual basis, consumer prices were up 0.7%.
- Thursday – EUR – ECB Interest Rate Decision
- Thursday – US – Existing Home Sales
Australian Market
The Australian sharemarket fell 0.3% yesterday, in a mixed session of trade, with the Information Technology and Energy sectors the weakest performers. Software company Nuix slumped 15.4% after it lowered its revenue and contract value forecasts for FY21 from what it had provided in its IPO prospectus last year.
The Health Care sector outperformed, lifted by CSL and Cochlear which both rose 1.5%, while Sonic Healthcare slipped 0.8%.
Consumer stocks were mostly higher; Super Retail Group added 1.2%, Wesfarmers rose 0.7% and Woolworths gained 0.3%.
The Financials sector weakened as the big four banks were mostly lower; ANZ, NAB and Westpac all fell between 0.8% and 1.1%, while Commonwealth Bank bucked the trend to add 0.5%.
The Materials sector underperformed. BHP lost 0.5% after the company reported a fall in first quarter production, however, updated its FY21 production goals. Rio Tinto fell 0.1% and Fortescue Metals was flat.
The Australian futures market points to a 0.53% rise today, driven by stronger overseas markets overnight.
Overseas Markets
European sharemarkets rose on Wednesday, as strong earnings countered worries about a rapid rise in COVID-19 cases in some countries. German company Hugo Boss jumped 6.7% to a one-year high, boosted by speculation of a takeover, possibly from French luxury goods maker LVMH. Heineken added 4.8% after strong sales across Asia and Africa helped offset the slump from European lockdowns. HelloFresh underperformed, down 3.7% to ease from recent highs. By the close of trade, the broad based STOXX Europe 600 added 0.7%.
US sharemarkets were stronger overnight, after two days of losses. Renewable energy companies rebounded from recent weakness; Enphase Energy and SolarEdge Technology gained 5.5% and 4.6% respectively, while electric vehicle charging station ChargePoint lifted 5.9%. Financial services companies closed higher; Visa added 1.9% and MasterCard rose 1.7%, while PayPal eked out a 0.2% gain. Spotify slipped 3.5%, while Netflix slumped 7.4% after the company added four million subscribers in the first quarter well below guidance for six million.
Technology heavyweights closed higher; Amazon, Apple and Microsoft all added between 0.3% and 0.9%, while Alphabet closed flat.
By the close of trade, the Dow Jones and S&P 500 both rose 0.9%, while the NASDAQ gained 1.2%.
CNIS Perspective
Yesterday’s retail spending data confirms the consumer is back and spending their built-up cash balance. Not surprisingly, cafés, restaurants and takeaway services led the rise, as restrictions eased in Victoria and Western Australia. Clothing, footwear and personal accessory sales also saw gains. Sales were up 2.3% on the same time last year, when people were stockpiling in preparation of lockdowns.
We are at an interesting inflection point, with sales supported by low interest rates, an upturn in housing and elevated consumer confidence, offset by the conclusion of the JobKeeper scheme at the end of last month.
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