Pre-Open Data
Key Data for the Week
- Monday – EUR – Consumer Confidence
- Tuesday – EUR – Consumer Price Index
- Tuesday – US – Consumer Confidence
- Wednesday – AUS – CoreLogic Dwelling Prices
- Wednesday – EUR – Unemployment Rate
- Thursday – US – Gross Domestic Product
- Thursday – AUS – Trade Balance
- Friday – EUR – Retail Sales
- Friday – US – Unemployment Rate
Australian Market
The Australian sharemarket closed the session higher on Friday, as it rose 1.1%. As a result, the ASX 200 recorded a 0.5% increase to finish the week at a three-week high.
The major oil providers lifted the Energy sector, which added 2.3% due to an increase in the price of oil. Beach Energy was the best performer, up 3.8%, while Woodside Energy and Santos added 3.6% and 1.1% respectively.
There were also gains in the Information Technology sector, despite a 20.9% drop in Appen’s share price. This comes as Telus International revoked their offer to takeover the company at $9.50 per share. Among the other technology stocks, Block rose 5.9% and Altium lifted 1.0%, while Xero eked out a less than 0.1% gain.
All major banks rose to lift the Financials sector higher. Commonwealth Bank outperformed, up 1.1%, while Westpac, ANZ and NAB all added between 0.4% and 0.8%.
The Australian futures market points to a 1.14% rise today, driven by stronger overseas markets.
Overseas Markets
European sharemarkets closed higher on Friday, as most sectors closed the session in positive territory. Semiconductor manufacturers were among the best performers; Infineon Technologies rose 4.6% and ASML added 4.7%. Renewable Energy providers also rose, as Ørsted lifted 3.3% and Nordex closed the session 0.5% higher.
The Financials sector also rose, as all major banks enjoyed strong performances. BNP Paribas added 1.6% and Banco Santander lifted 0.7%, while Barclays rose 1.3%.
By the close of trade, the STOXX Europe 600 added 1.4% and the German DAX lifted 1.6%, while the UK’s FTSE 100 added 0.3%. Over the week, the STOXX Europe 600 jumped 2.6%, while the German DAX and the UK’s FTSE 100 lifted 3.4% and 2.7% respectively.
US sharemarkets were also higher to end the week, as the S&P 500 broke a seven-week losing streak. The Information Technology sector outperformed, as investors took advantage of opportunities in the heavily weakened sector. NVIDIA Corporation led the gains, up 5.4%, while Apple and Microsoft lifted 4.1% and 2.8% respectively.
Electric vehicle infrastructure providers also rose on Friday, as ChargePoint Holdings jumped 13.9%. Taiwan Semiconductor Manufacturing Co. and onsemi both added 3.1%, while Tesla rose 7.3%.
By the close of trade, the Dow Jones added 1.8% and the S&P 500 lifted 2.5%, while the NASDAQ gained 3.3%. Over the week, the NASDAQ rose 6.5% and the S&P 500 was up 6.1%, while the Dow Jones closed 5.8% higher.
CNIS Perspective
Global equities attracted ~US$20 billion of inflows in the week ended 25 May, the most in 10 weeks, with US sharemarkets leading the way.
This follows a strengthening in contrarian buy signals, which is an investment approach characterised by purchasing and selling in contrast to the prevailing sentiment of the time.
The Goldman Sachs Sentiment Indicator has been in buy territory (below -2.0) for five straight weeks.
Going back to its introduction in 2009, there has been only one sequence of five consecutive readings of -2.0 or lower, in September 2011, at which point, the market recovered 11% in the following quarter.
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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