Pre-Open Data
Key Data for the Week
- Wednesday – UK – Markit Manufacturing PMI fell to 61.7 in June, from 62.9 in May.
- Wednesday – US – Current Account deficit widened to US$195.7 billion in Q1 2021, from US$175.1 billion in the previous period.
- Thursday – AUS – ABS Business Conditions and Sentiments
- Thursday – UK – Bank of England Bank Rate
Australian Market
The Australian sharemarket eased 0.6% on Wednesday. Information Technology and Materials were the only sectors to finish higher, up 1.1% and 0.8% respectively, while Health Care was the weakest performer, weighed down by a 2.1% decline in biotechnology heavyweight CSL.
Travel stocks weakened as NSW locally acquired COVID-19 cases continued to grow. Flight Centre fell 3.5% and Webjet gave up 2.3%, while Sydney Airport and Auckland International Airport lost 2.2% and 0.6% respectively.
Consumer Staples stocks were mixed; Coles lifted 0.5%, while Woolworths slipped 1.9% after the supermarket giant reported that its full year earnings are likely to include a $57 million pre-tax net gain and will write-down the value of 13 of its Metro CBD stores by approximately $50 million. Horticultural company Costa Group was placed in a trading halt as the company announced it will purchase citrus grower 2PH Farms for approximately $200 million.
The Information Technology sector was lifted by strong gains among buy-now-pay-later providers; Zip Co climbed 6.4% and Afterpay rose 3.2%, while Sezzle rose 1.1%.
The Australian futures market points to a 0.4% fall today.
Overseas Markets
European sharemarkets weakened overnight as inflation concerns detracted from positive eurozone business activity growth data. French luxury goods makers eased following downgrades from HSBC; Kering lost 3.0%, while Hermes slipped 1.5%. Banking stocks were mixed; Lloyds Bank lifted 0.8% and Barclays added 0.2%, while HSBC and Deutsche Bank both lost 0.7%.
By the close of trade, the German DAX gave up 1.2% and the STOXX Europe 600 closed down 0.7%, while the UK FTSE 100 slipped 0.2%.
US sharemarkets were mixed on Wednesday. The Financials sector lifted 0.3%; Citigroup rose 1.0%, while Bank of America and JP Morgan Chase both gained 0.6%. Financial services stocks were mostly higher; PayPal added 0.5% and PagSeguro Digital lifted 0.2%, however, Visa and MasterCard closed down 0.5% and 0.8% respectively.
Information Technology stocks were mixed; Spotify gained 1.2%, NVIDIA rose 0.9% and Facebook lifted 0.5%, while Apple and Alphabet fell 0.2% and 0.4% respectively. By the close of trade, the Dow Jones closed down 0.2% and the S&P 500 gave up 0.1%, while the NASDAQ improved 0.1%.
CNIS Perspective
Who would have thought this time last year, mid-COVID pandemic, that the US population would be experiencing a record gain in net wealth just 12 months on.
However, data released by the US Federal Reserve shows net wealth grew sharply in the first year of the pandemic. Interestingly enough, the bottom half of households have benefited relatively more than the top end, with net worth up 36.0% compared to a 33.0% rise for the top 1.0%.
Gains on the US sharemarket, along with the US property market boom, have strengthened the asset side of household balance sheets, while record low interest rates have seen debt levels become more manageable on the liabilities side.
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.
