CommSec Market Update

The Australian sharemarket snapped a 4-day winning streak, with the ASX 200 slipping by 20.3pts or 0.28% to 7131. Most sectors declined ahead of a key speech by Federal Reserve Chair Jerome Powell tonight and US inflation data on Thursday.

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast.

We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

Technology led the gains. Shares in Tesla rose 5.9% with Reuters noting that "the electric-vehicle maker indicated longer waiting times for some versions of the Model Y in China, signalling the recent price cuts could be stoking demand." Shares in Apple rose by 0.4% and Microsoft lifted 1.0%. But shares in Macy's fell 7.3% after disappointing with holiday-quarter forecasts. At the close of trade the Dow Jones index was down by 113 points or 0.3% after earlier being up 304 points. The S&P 500 index was down 0.1%. But the Nasdaq index lifted by 66 points or 0.6%.

 

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast.

 

We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

The Australian sharemarket extended its winning streak to a fourth day, with the ASX 200 lifting by 0.6%. While 9 of 11 sectors improved, energy, mining, bank and retail stocks were among the best performers.

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

While jobs rose as expected and unemployment fell, the services sector contracted for the first time since 2020. The Dow Jones index rose by 701 points or 2.1%; the S&P 500 index rose by 2.3%; and the Nasdaq index lifted by 264 points or 2.6%. Over the week the Dow rose 1.5% with the S&P 500 up 1.4% and the Nasdaq up 1.0%.

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

Investors digested better-than-expected earnings reports and an improvement in consumer confidence. Nike shares soared 12.2% after the company topped earnings and revenue estimates for its most recent quarter. FedEx shares gained 3.4% on the delivery company's plans to slash US$1 billion in costs. Shares of cruise operator Carnival Corp jumped 4.7% after posting a smaller-than-expected quarterly loss. At the close of trade, the Dow Jones index rose by 527 points or 1.6%. The S&P 500 index lifted by 1.5% and the Nasdaq index added 162 points or 1.5%.     

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast.

We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

Energy (+1.5%) and financial (+0.3%) stocks led gains after the Bank of Japan tweaked its monetary policy in a surprise move that would allow long term interest rates to rise more. Shares of drug maker Moderna rose 5.9% after the stock was upgraded by broker Jefferies to "buy" from "hold". Miner Newmont's shares jumped 4.4% as the price of gold climbed. But Tesla shares lost 8.1% after several brokerages cut the electric vehicle maker's target price on growing concerns of demand weakness. Shares of food producer General Mills dropped 4.6%, despite reporting better than expected quarterly revenue and profits. At the close of trade, the Dow Jones index rose by 92 points or 0.3%. The S&P 500 index lifted by 0.1% and the Nasdaq index added just 1 point or less than 0.1%.

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast.

We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

Investors feared that the US Federal Reserve's ('the Fed') monetary policy tightening campaign could push the US economy into a recession. Shares of technology giants Apple (-1.6%), Microsoft (-1.7%) and Amazon (-3.4%) were weighed down by rising US government bond yields. Walt Disney shares fell 4.8% after ticket sales of "Avatar: The Way of Water" fell short of box office forecasts. Shares of casino operator Wynn Resorts dipped 5.2% after it committed US$2.2 billion to invest and operate in Macau. Shares of defence contractor L3Harris Technologies slid 3.6% following its US$4.7 billion Aerojet Rocketdyne (+1.3%) buyout. At the close of trade, the Dow Jones index fell by 163 points or 0.5%. The S&P 500 index dropped 0.9% and the Nasdaq index shed 159 points or 1.5%.    

 

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

Comments from US Federal Reserve officials unnerved investors worried that the central bank's campaign to counter inflation would push the US economy into a recession. New York Fed President John Williams said, "we're going to have to do what's necessary" to get inflation back to target. San Francisco Fed President Mary Daly said it is "reasonable" to believe that once the Fed's policy rates reached their peak they could stay there into 2024. The quarterly triple witching expiry of equity derivatives amplified market moves. At the close of trade, the Dow Jones index fell by 282 points or 0.9%. The S&P 500 index lost 1.1%, with the Nasdaq index down by 105 points or 1%. For the week, the Dow lost 1.7%, the S&P fell 2.1% and the Nasdaq shed 2.7%.   

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

The Australian sharemarket has fallen for a second day after global central banks continued to raise interest rates and flag more pain to come in 2023. The interest rate sensitive tech sector fell most.

 

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.

CommSec Senior Economist Ryan Felsman & Market Analyst Tom Piotrowski discuss the factors that could influence the Australian sharemarket during 2023, including the outlook for interest rates, inflationary expectations, in addition to the prospect of China’s reopening.

Commonwealth Securities Limited ABN 60 067 254 399 AFLS 238814 (CommSec) is a wholly but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 12 12 124 AFSL: 234945 (the Bank) and a  Market Participant of the ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Any advice contained in this broadcast is general advice only. As the information in this broadcast has not been prepared with reference to your objectives, financial or taxation situation or needs, you should, before acting on it, consider its appropriateness to your circumstances and seek appropriate professional advice. CommSec, the Bank, and their related entities do not accept any liability arising out of or in relation to reliance on the information in this broadcast. We believe that the information in this broadcast is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. This report is under copyright to CommSec and the Bank and may not be used without their prior consent.