Pre-Open Data
Key Data for the Week
Australian Market
The Australian sharemarket gained 0.2% on the final trading day of the financial year. The local ASX 200 closed higher for the ninth consecutive month, up 2.1% in June, as markets were buoyed by low interest rates.
The Telecommunications sector was the strongest performer, up 2.7%. Telstra climbed 4.4% after the company agreed to sell half of its mobile towers business, InfraCo Towers, for approximately $3 billion to Australia’s Future Fund, Commonwealth Superannuation Corp and Sunsuper.
The Utilities sector was the main laggard, weighed down by AGL Energy, which gave up 10.0% after the company confirmed the demerger of its coal-fired power stations business and cleaner energy operations. Origin Energy fell 2.6% and APA Group lost 1.3%, while Meridian Energy slipped 0.4%.
Mining heavyweights lifted the Materials sector; Rio Tinto added 1.3% and BHP rose 1.1%, while Fortescue Metals gained 0.9%. However, gold miners were weaker; Newcrest Mining gave up 1.6% and Northern Star fell 1.5%, while Evolution Mining closed down 0.7%.
The Financials sector finished the session flat. All major banks except NAB closed weaker; Commonwealth Bank lost 0.6%, ANZ fell 0.3% and Westpac slipped 0.2%, while NAB rose 0.4%.
The Australian futures market points to a 0.08% fall today.
Overseas Markets
European sharemarkets eased overnight as investors locked in profits at the end of the quarter. Automaker stocks were the weakest performers, down 1.9%; Porsche lost 4.2% and Volkswagen Group fell 2.3%, while BMW gave up 2.2%. Banking stocks also closed lower; Barclays Bank slipped 1.2%, while UBS and HSBC both fell 0.8%. By the close of trade, the STOXX Europe 600 lost 0.6% and the UK FTSE 100 fell 0.7%, while the German DAX gave up 1.0%.
Despite overnight weakness, the STOXX Europe 600 rose 1.4% in June to close higher for the fifth consecutive month. The Health Care sector was the strongest performer in June, up 6.7%, while travel and leisure stocks was the main laggard, down 4.9%, as surges in the Delta variant of COVID-19 raised concerns of further restrictions.
US sharemarkets were mixed on Wednesday. The Energy sector was the top performer; Chevron Corporation rose 1.0%, while ExxonMobil added 0.8%. Information Technology stocks were mixed; Spotify rose 1.0% and Apple added 0.5%, while Facebook fell 1.2% and Alphabet slipped 0.6%. The Health Care sector finished the session flat, however, Bristol-Myers Squibb added 0.8% and Johnson & Johnson gained 0.4%. By the close of trade, the NASDAQ slipped 0.2%, while the S&P 500 and Dow Jones lifted 0.1% and 0.6% respectively.
Over the month, the Dow Jones fell 0.1% and the S&P 500 rose 2.2%, while the NASDAQ gained 5.5%.
CNIS Perspective
While the NSW lockdown is limited to just Greater Sydney, Wollongong, Blue Mountains and Central Coast, it should be noted these regions make up 25% of Australia’s economic activity.
This explains the importance the NSW and Federal Governments are placing on ending the lockdown on 9 July and not prolonging the economic damage.
It’s expected the NSW lockdown will reduce economic activity by up to $1 billion a week, which could translate into a 0.2% drag on the September GDP.
Already, consumer confidence has fallen 4.6% in Sydney and 6.6% in regional NSW.
Previous experience shows the build-up of consumer demand from a lockdown quickly translates into economic activity when they end.
Obviously, the sooner the better for a number of economic reasons.
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.