Pre-Open Data
Key Data for the Week
- Monday – CHINA – Trade Balance
- Tuesday – AUS – NAB Business Conditions & Confidence
- Tuesday – EUR – Gross Domestic Product
- Wednesday – JAPAN – Gross Domestic Product
- Thursday – US – Consumer Price Index
- Thursday – AUS – Consumer Inflation Expectations
- Friday – UK – Industrial Product
Australian Market
The Australian sharemarket eased 0.6% on Friday in a weak session of trade. Utilities and Consumer Staples were the only sectors to advance, up 0.7% and 1.2% respectively. Over the week, the local ASX 200 rebounded 1.6%, as the Energy sector added 8.9% and the Materials sector rose 8.1%.
The Information Technology sector slumped 3.6% on Friday, as buy-now-pay-later providers led the losses; Afterpay owner Block slid 9.2%, while Zip Co and Sezzle lost 8.0% and 6.8% respectively. Artificial intelligence company Appen gave up 2.3%, while accounting software provider Xero fell 2.5%.
The major banks were mostly weaker; ANZ and Westpac both slid 1.2%, while NAB slipped 0.8%, however, Commonwealth Bank eked out a 0.1% gain. Insurers were mixed; Insurance Australia Group and Suncorp both added 0.5%, while QBE Insurance gave up 1.8% after the company stated it has recorded approximately 3,000 claims from the floods in northern NSW and Queensland, with additional claims expected.
The Australian futures market points to a 0.39% rise today.
Overseas Markets
European sharemarkets weakened on Friday in response to news that Russian forces had seized the largest nuclear power plant in Europe. The Banking sector slumped 7.9%; Deutsche Bank shed 9.4% and Barclays Bank gave up 7.0%, while HSBC and Lloyds Bank fell 5.1% and 1.0% respectively. By the close of trade, the STOXX Europe 600 closed down 3.6% and the UK FTSE 100 lost 3.5%, while the German DAX shed 4.4%. Over the week, the STOXX Europe 600 gave up 7.0%.
US sharemarkets also closed lower on Friday. The Energy sector posted gains as the price of oil continued to rise; Chevron added 1.6%, while ConocoPhillips lifted 2.9% and ExxonMobil rose 3.7%. The Health Care sector also enjoyed gains; UnitedHealth Group added 2.5% and Johnson & Johnson rose 0.6%, while Bristol-Myers Squibb closed up 0.4%. By the close of trade, the Dow Jones slipped 0.5%, while the S&P 500 and NASDAQ fell 0.8% and 1.7% respectively.
CNIS Perspective
The energy crisis gained momentum over the weekend as the cost of brent crude oil futures for May topped US$118 a barrel.
This comes off the back of the White House announcing on Saturday that it is considering a ban on imports of Russian oil, amid growing calls for a response from the United States.
The West Texas Intermediate April contract is trading up 7.4% to $US115.68 and Brent May futures are trading up 6.9% to $US118.11.
This move, if actioned, could have broader implications for energy prices if other global powers, particularly in Europe, adopt similar actions.
This will also have an inflationary impact on gas prices as countries look to alternate sources of energy in the short term, strengthening conversations around alternative energies such as solar and wind for long term production.
This may also strengthen conversations around de-globalisation to ensure that critical self-sufficiency can be met at all times, which would have a serious long term economic impact on the current resource providers.
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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