Pre-Open Data
Key Data for the Week
- Tuesday – US – Manufacturing Index jumped to 13 in March, from 1 in February.
- Wednesday – EUR – Consumer Confidence
- Wednesday – US – New Home Sales
Australian Market
The Australian sharemarket added 0.9% yesterday, lifted by gains in the Materials, Energy and Financials sectors.
An increase in metal prices aided the Materials sector, as countries continue to boycott any trade with Russia. As a result, the sector added 3.3%, and is up 6.8% over the last week. BHP was the main contributor, up 5.1%, while Rio Tinto and Fortescue Metals rose 3.0% and 1.2% respectively. Gold miners also enjoyed gains; Northern Star added 1.9% and Evolution Mining lifted 0.9%.
The price of oil strengthened as Brent crude oil traded at approximately US$119. Beach Energy was among the best performers in the sector, up 3.2%, while Santos and Woodside Petroleum rose 2.2% and 1.6% respectively. Coal miners also rose, as Yancoal gained 3.0%, while New Hope Corporation jumped 8.5% after the company announced it will pay out an increased dividend as first-half earnings were improved by increased coal prices.
The Information Technology sector was the main laggard yesterday, as it closed down 1.3%. Block weighed on the sector, down 5.1%, Appen and WiseTech Global shed 3.1% and 1.1% respectively, while Xero lost 2.6%.
The Australian futures market points to a 0.42% rise today, driven by stronger overseas markets.
Overseas Markets
European sharemarkets enjoyed gains overnight, as the Financials sector rose following hawkish comments from US Federal Reserve Chair, Jerome Powell, that alluded to more aggressive rate hikes in the coming meetings. As a result, Deutsche Bank lifted 5.6%, Barclays rose 2.6% and BNP Paribas added 1.7%. The oil majors were mixed despite an increase in the price of oil; BP added 1.3%, while Royal Dutch Shell lost 0.9%. By the close of trade, the German DAX and UK FTSE 100 rose 1.0% and 0.5% respectively, while the STOXX Europe 600 closed up 0.7%.
US sharemarkets rose on Tuesday, aided by gains in the Financials sector. Wells Fargo rose 4.4%, while Bank of America and Goldman Sachs lifted 3.1% and 1.2% respectively. Electric vehicle and semiconductor providers enjoyed gains; Tesla soared 7.9%, ChargePoint Holdings added 1.7% and onsemi rose 0.4%. By the close of trade, the Dow Jones closed up 0.7%, while the S&P 500 and NASDAQ gained 1.1% and 2.0% respectively.
CNIS Perspective
Qantas has become one of the first major ASX-listed companies to embrace digital assets, this week announcing it will begin the sale of a set of Non-Fungible Tokens (NFT’s) later this year.
Using blockchain technology, pieces of unique branded Qantas digital artworks will be available for collectors to buy, own and sell without being copied, all due to the ability to transact via the blockchain.
As we inevitably move towards a more digital existence, the ability to be able to hold and utilise digital assets is expected to grow considerably. The global NFT market is predicted to generate more than $2.5 billion this year alone, with the market for NFT’s expected to grow to a $100 billion industry by 2025.
Overtime, NFT’s are expected to take on many different use cases beyond art and collectibles that we see today, including bringing real world assets onto the blockchain (real estate through property deeds), medical records, identity verification, academic credentials, supply chain management, intellectual property rights, voting and much more.
While only on the very cutting edge of popularity, and still with many sceptics debating the value of such items for sale, NFT’s are far from a mainstream investment. However, there is a growing niche market, especially among art collectors, sports fans and crypto investors.
While Qantas might be one of the first iconic, ASX-listed businesses to head down the path of NFT sales through blockchain technology, don’t expect it to be the last, especially if revenue from the sale of these digital artwork’s surprises on the upside.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management 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.
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