Pre-Open Data
Key Data for the Week
- Tuesday – AUS – NAB Business Conditions & Confidence – Conditions improved 7 points, while Confidence rebounded to add 9 points.
- Tuesday – EUR – Gross Domestic Product growth was 0.3% in the December quarter.
- Wednesday – JAPAN – Gross Domestic Product
Australian Market
The Australian sharemarket lost 0.8% in a mixed session yesterday, despite a fairly stable start to the trading day. Commodity stocks led the broad decline, however the price of Brent crude oil surged to approximately US$127 per barrel.
The major miners weighed on the Materials sector, as it fell 3.3%. Fortescue Metals lost 4.5% and Rio Tinto conceded 4.3%, while BHP shed 3.7%. Goldminers enjoyed a spike in the price of gold; Northern Star Resources added 1.2%, while Evolution Mining lifted 0.7%.
The Energy sector lost 3.6% as news emerged the US and European allies would discuss the extension of sanctions on Russian oil and alluded to a potential boycott. Woodside Petroleum fell 4.2%, Beach Energy dropped 4.0% and Santos closed the session 3.8% lower.
The Financials sector closed the session relatively flat, as the big four banks were mixed. Commonwealth Bank was the best performer, up 1.0%, and NAB lifted 0.2%. ANZ and Westpac closed the session in the red, as they dropped 0.7% and 0.5% respectively. Fund managers lost ground; Magellan Financial Group shed 0.9%, while Australian Ethical Investment slipped 2.4%.
The Australian futures market points to a 0.07% rise today.
Overseas Markets
European sharemarkets closed mostly higher overnight, lifted by the Financials sector. Barclays added 1.5% and Deutsche Bank lifted 2.5%, while BNP Paribas gained 3.2%. The major miners declined despite an increase in the price of iron ore; Glencore lost 1.2%, while London-listed Rio Tinto conceded 2.1%. By the close of trade, the STOXX Europe 600 closed down 0.5% and the German DAX closed relatively flat, while the UK’s FTSE 100 added 0.1%.
US sharemarkets finished lower on Tuesday, as the Russia-Ukraine conflict continues to result in volatile trading sessions. Cybersecurity stocks continued their recent decline; Fortinet lost 5.0% and CrowdStrike fell 6.4%. Renewable energy and semiconductor companies enjoyed gains; ChargePoint Holdings added 5.3%, while Taiwan Semiconductor Manufacturing Co lifted 0.7%. By the close of trade, the Dow Jones slipped 0.6%, while the S&P 500 and NASDAQ fell 0.7% and 0.3% respectively.
CNIS Perspective
Business Confidence improved for a second consecutive month in February, continuing to rebound from a sharp fall in December owing to the Omicron outbreak. Business Confidence jumped 9 index points to +13, which pushes confidence well above the 10-year average of +4.
As has been showcased throughout the pandemic, businesses continue to show exceptional resilience in the face of considerable uncertainty.
War in Ukraine, severe flooding across large parts of Queensland and NSW, growing price pressures and the prospect of rising interest rates are headwinds to confidence. However, businesses have demonstrated an incredible ability to bounce back from temporary disruptions.
Business Conditions should continue to improve over 2022 as the economic recovery persists. Business investment will also continue to be supported by generous tax incentives, strong underlying demand, robust household and business balance sheets, and a continued recovery in the labour market.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management Team on (02) 4928 8500.
Disclaimer
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