Author Archives: Atchison

Australian market climbs ahead of RBA decision
The Australian share market closed higher on Monday, supported by strong gains in the mining sector ahead of the Reserve Bank of Australia’s (RBA) interest rate decision. The S&P/ASX 200 Index gained 0.4 per cent to finish at 8844.80, while the All Ordinaries Index rose 0.5 per cent. Optimism over a potential third rate cut this year to 3.6 per cent fuelled investor sentiment, although analysts noted the RBA may hold steady given the 4.3 per cent unemployment rate. Eight of the ASX’s eleven industry groups finished higher, led by materials after Contemporary Amperex Technology Co. Limited (SHE: 300750) suspended production at a key lithium mine, triggering a rally in battery metal producers.

Mining surge offsets retail weakness
Lithium miners saw sharp gains, with Pilbara Minerals Limited (ASX: PLS) jumping 19.7 per cent, Liontown Resources Limited (ASX: LTR) up 18.3 per cent, and Mineral Resources Limited (ASX: MIN) climbing 12.2 per cent. Iron ore producers also rose after futures prices lifted in Singapore, with BHP Group Limited (ASX: BHP) up 1.6 per cent, Fortescue Metals Group Limited (ASX: FMG) adding 3 per cent, and Rio Tinto Limited (ASX: RIO) gaining 1.5 per cent. Financials were mixed, with Westpac Banking Corporation (ASX: WBC) up 1.9 per cent, while insurers such as Insurance Australia Group Limited (ASX: IAG) and Suncorp Group Limited (ASX: SUN) fell sharply. In consumer stocks, JB Hi-Fi Limited (ASX: JBH)tumbled 8.4 per cent after CEO Terry Smart’s resignation, overshadowing results, while Wesfarmers Limited (ASX: WES) and Eagers Automotive Limited (ASX: APE) also declined.

US markets ease as key data approaches
On Wall Street, US stocks slipped ahead of a week of key economic releases and geopolitical developments. The S&P 500 Index fell 0.2 per cent, the Dow Jones Industrial Average lost 199 points, and the Nasdaq 100 Index dropped 0.3 per cent following strong gains last week. Investors are awaiting July’s Consumer Price Index on Tuesday and Producer Price Index on Thursday, both critical for the Federal Reserve’s September rate decision, with markets expecting a rate cut. Trade tensions persisted despite US President Donald Trump extending a 90-day tariff pause on Chinese goods and securing a deal for NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) to remit 15 per cent of revenue from certain AI chip sales to China. Tech stocks were mixed, with Intel Corporation (NASDAQ: INTC) and Micron Technology, Inc. (NASDAQ: MU) advancing, while Apple Inc. (NASDAQ: AAPL) fell 1.4 per cent after its strongest week in over five years.

Iron ore rally not enough to offset healthcare losses, All Ords falls on Friday, Block surges, QBE tanks on profit concerns

The local market finished the week with a weaker tone, falling 0.3 per cent as strength in the materials sector, up 1.4 per cent, was not enough to overcome broader weakness. Fortescue Metals Group Limited (ASX: FMG) was the first company to obtain a 3 billion dollar syndicated loan from China, with shares rallying 1.8 per cent on the news, alongside an improving iron ore price. The healthcare sector remains under pressure, as Pro Medicus Limited (ASX: PME) fell 3.6 per cent amid a broader rotation out of quality and into cyclical companies. Insurer QBE Insurance Group Limited (ASX: QBE) delivered a solid profit result, with management on track to hit 1.6 billion dollars for the full year; however, shares tanked by more than 8 per cent as analysts questioned the treatment of prior year’s reserves and their contribution to profit. Block Inc (ASX: SQ2), owner of Afterpay, gained 8.3 per cent as the company delivered record income for the quarter, with gross profit up 14 per cent on the prior quarter amid US growth in Afterpay. Fund manager GQG Partners Inc (ASX: GQG) suffered a near 15 per cent drop as the company flagged the loss of a 1 billion US dollar mandate, albeit on a pool exceeding 150 billion US dollars. Shares in XPLAN provider Iress Limited (ASX: IRE) also gained strongly, as the company benefited from a stalled takeover bid by private equity giant Blackstone Inc (NYSE: BX), with shares gaining 12 per cent on the news. The S&P/ASX 200 Index (ASX: XJO) managed a 1.7 per cent gain for the week, led by the materials and retailing sectors.

Nasdaq surges to record high, Apple has best week since 2020, Fannie Mae, Freddie Mac to issue shares

The technology sector continued to defy expectations, with the NASDAQ Composite Index (NASDAQ: IXIC)outperforming on Friday, gaining 1 per cent and taking the weekly gain to just under 4 per cent. Apple Inc (NASDAQ: AAPL) surged another 4 per cent on the back of its announcement of plans to spend 100 billion US dollars in domestic manufacturing capabilities — its best week since 2020. The S&P 500 Index (NYSE: SPX) and the Dow Jones Industrial Average (INDEXDJX: DJI) followed, adding 0.5 and 0.8 per cent respectively, but sentiment remains positive amid conversations between the US and Russia seeking to end the Ukraine–Russia war. Lending institutions Fannie Mae and Freddie Mac are set to issue shares once again as they continue their return post-GFC. Meta Platforms Inc (NASDAQ: META) has reportedly funded its 29 billion US dollar data centre expansion with the help of fixed income giant PIMCO and Blue Owl Capital Inc (NYSE: OBDC), while SoftBank Group Corp (TYO: 9984) is buying the Foxconn EV plant to convert it into its own Stargate data centre project. Expedia Group Inc (NASDAQ: EXPE) surged more than 4 per cent after flagging stronger than expected US bookings.

Retailers jump on impending rate cut, All Ords falls from peak, Westgold surges on production upgrade

The local market managed to hold ground, with the S&P/ASX All Ordinaries Index (ASX: XAO) dropping just 0.1 per cent amid a mixed day. The healthcare sector dropped 1.2 per cent on growing tariff and US policy concerns, with both CSL Limited (ASX: CSL) and ResMed Inc (ASX: RMD) down more than 1 per cent. The highlight, once again, was the retail sector, which gained 0.9 per cent, as the likes of JB Hi-Fi Limited (ASX: JBH) and Wesfarmers Limited (ASX: WES) gained strongly, the former up 1.8 per cent. The demand came amid fixed income markets pricing in a 100 per cent chance that the Reserve Bank of Australia (RBA) cuts interest rates when it meets on Tuesday. Gold miners also performed strongly, as uncertainty pushed the US gold price higher, with Westgold Resources Limited (ASX: WGX) posting a 5 per cent gain after announcing an increase in production expectations for the financial year.

AMP bounces despite falling profit, ASX sinks on failures, Light & Wonder seeks sole ASX listing

The Australian market operator, ASX Limited (ASX: ASX), is under incredible pressure following yesterday’s bungle, with shares falling more than 8 per cent on Thursday. The Treasurer made several statements suggesting that the market operator could be set to lose its monopoly licence, while the company also flagged an additional 35 million dollars in expenses related to compliance with ASIC and other regulator requests. Shares in wealth manager AMP Limited (ASX: AMP) gained close to 5 per cent, despite reporting a 5 per cent fall in profit to just 98 million dollars, with hopes that the break-up and simplification of the business would begin to reverse the troubling trend. Gaming company Light & Wonder Inc (ASX: LNW) posted a 2.6 per cent loss after the company flagged intentions to cut its NASDAQ listing and shift focus to Australia exclusively.

S&P 500 pauses rally, Eli Lilly sinks on poor results, Intel chief under pressure

The S&P 500 Index (NYSE: SPX) paused its stellar run, falling 0.1 per cent on Thursday, however a continued surge in Apple Inc (NASDAQ: AAPL) — which took its two-day gains to 8.5 per cent — pushed the NASDAQ Composite Index (NASDAQ: IXIC) up 0.4 per cent. Intel Corporation (NASDAQ: INTC) faced heavy selling after President Trump called on the company’s leader to resign, suggesting he had “conflicts of interest.” Chipmakers rallied as NVIDIA Corporation (NASDAQ: NVDA) added 0.8 per cent, continuing its strong momentum. Pharmaceutical giant Eli Lilly and Company (NYSE: LLY) sank more than 14 per cent after flagging weaker-than-expected data from trials of its weight-loss pill, despite stronger-than-expected sales. The US economy showed more signs of stress, with jobless claims hitting their highest level since 2021. In a win for asset managers, President Trump signed an executive order that will allow 401(k) accounts — similar to superannuation — to access more private market and crypto investments.

Records all round as S&P/ASX200, gold hit new highs, resources, Newmont rally, CommBank reversal begins

The local market closed above a new all-time high on Wednesday, surpassing the 8,800 point level for the first time ever by gaining 0.8 per cent. The materials sector was behind the rally, with the sector leading 10 of the market’s 11 sectors higher, driven by a renewed surge in the gold price. The gold price moved past 3,400 US dollars per ounce — another record — buoying the likes of Northern Star Resources Limited (ASX: NST) to more than 5 per cent gains. The rise comes as another sign of a weakening US economy, this time via the services sector, boosting hopes for rate cuts. Goodman Group (ASX: GMG) and Wesfarmers Limited (ASX: WES) also posted more than 1.5 per cent gains. All eyes are on Commonwealth Bank of Australia (ASX: CBA) with the behemoth gaining 1 per cent, a week ahead of its full-year earnings result, which will test its valuation.

TPG Telecom sinks on ASX error, News Corp gains on REA Group dividend, revenue jump

The ASX Limited (ASX: ASX) is in trouble once again after sending shares in TPG Telecom Limited (ASX: TPG) more than 5 per cent lower due to another error. The group was incorrectly tagged in news of a takeover offer by private equity group TPP Capital Asia, which had bid 651 million dollars to purchase Infomedia Limited (ASX: IFM), whose shares gained close to 30 per cent on the news. News Corporation (ASX: NWS) gained 5 per cent after the company reported solid revenue growth of 2 per cent and a 14 per cent jump in profit. This was supported by a 7 per cent gain in REA Group Limited (ASX: REA) — owner of Realestate.com.au — as the company flagged a double-digit increase in revenue and a record dividend.

Apple investment boosts US markets, India tariffs to hit 50 per cent, McDonald’s sees sales growth return

The technology sector once again drove global markets higher on Wednesday, with the S&P 500 Index (NYSE: SPX) gaining another 0.7 per cent and the NASDAQ Composite Index (NASDAQ: IXIC) rising 1.3 per cent amid a more than 5 per cent surge in Apple Inc (NASDAQ: AAPL) shares. The company flagged a 100 billion US dollar investment in US production capacity as it seeks to limit the impact of tariffs on iPhone production. According to Bloomberg’s Market Pulse Index, the market pushed into a ‘manic’ reading last month, but earnings have helped to settle valuation concerns. Airbnb Inc (NASDAQ: ABNB) was broadly flat despite reporting a solid result, as the company warned that summer sales had been weaker than expected. More toys and promotions were enough to see McDonald’s Corporation (NYSE: MCD) return to sales growth, increasing by 2.5 per cent in the quarter.

All Ords surges on rate cut hopes, Comm Bank, Wesfarmers lead gains, TPG Telecom to return $3bn

The local market took a strong lead from Wall Street with every sector finishing higher on Tuesday and ultimately pushing the S&P/ASX 200 Index (ASX: XJO) to a 1.2 per cent gain. The strongest performing sectors were retailers, up 1.8 per cent, and financials, up 1.5 per cent, with Commonwealth Bank of Australia (ASX: CBA) finishing 1.4 per cent higher and Wesfarmers Limited (ASX: WES) nearly 3 per cent. The positive sentiment was driven by rate cut hopes in the US, with a more than 80 per cent chance of September rate cuts now priced into the market. Shares in TPG Telecom Limited (ASX: TPG) reversed early gains to finish slightly lower, with the company to return 3 billion dollars to shareholders following the sale of its fixed line and fibre networks to Vocus Group Limited. Rare earth miners also contributed, with the likes of Iluka Resources Limited (ASX: ILU) gaining more than 8 per cent amid reports that the Australian government could follow the US in applying a floor price to rare earth commodities in an effort to counter China’s control over supply.

Debt collector Credit Corp soars on profit jump, Telix sinks on jump in expenses, Pinnacle reports strong investment flows

US and Australian debt collector Credit Corp Group Limited (ASX: CCP) topped the market, with shares gaining more than 16 per cent after the company reported stronger than expected collections in the US. Combined with a broader growth in consumer lending, profit increased 16 per cent, hitting 94 million dollars for the year. Austal Limited (ASX: AST) managed a 7.9 per cent gain after the company was confirmed as the Federal Government’s preferred shipbuilder once again. Popular thematic play Telix Pharmaceuticals Limited (ASX: TLX) sank by close to 9 per cent after the company flagged a surge in operating expenses that would engulf as much as 36 per cent of revenue in the second half. This was in addition to the anticipated R&D spend. It was another positive quarter for Pinnacle Investment Management Group Limited (ASX: PNI), which takes stakes in fund managers operating in Australia. The group reported a 49 per cent increase in net profit to 134 million dollars, driven by 23 billion dollars in new funds under management.

Markets sink on chipmakers, weaker services, oil slides on Ukraine–Russia truce

The US market fell from near all-time highs overnight, with the NASDAQ Composite Index (NASDAQ: IXIC) leading the losses, falling 0.7 per cent. The S&P 500 Index (NYSE: SPX) fell 0.5 per cent and the Dow Jones Industrial Average (INDEXDJX: DJI) 0.1 per cent, as a group of chipmakers, including Advanced Micro Devices Inc (NASDAQ: AMD), fell by more than 1 per cent. The news came after a stronger than expected sales forecast from AMD, while flagging concerns about access to the Chinese market. News also emerged that Chinese nationals had been detained after allegedly sending millions of dollars’ worth of NVIDIA Corporation (NASDAQ: NVDA) chips across the border despite restrictions. Hopes for an air-truce between Ukraine and Russia pushed oil lower, as it would potentially trigger an opening of more supply in the coming years. Interestingly, data shared by US broker Jefferies Financial Group Inc (NYSE: JEF)suggests that falling Federal Reserve interest rates tend to coincide with an outperformance in smaller companies over their large-cap counterparts. Amazon.com Inc (NASDAQ: AMZN) is said to be considering offering access to OpenAI applications via its platform.

All Ords flat as National Australia Bank, banks slip, Endeavour board ructions

The local market managed to hold ground despite selling pressure in the banking sector, with the S&P/ASX 200 Index (ASX: XJO) adding 0.1 per cent on Monday. The likes of National Australia Bank Limited (ASX: NAB) and Australia and New Zealand Banking Group Limited (ASX: ANZ) fell by 0.7 and 1.5 per cent, respectively, offsetting gains in the staples and materials sectors, which both added more than 1 per cent. A sustained rally in iron ore supported Fortescue Metals Group Limited (ASX: FMG) and BHP Group Limited (ASX: BHP) to gains of 1.5 and 0.9 per cent respectively, while both Coles Group Limited (ASX: COL) and Woolworths Group Limited (ASX: WOW) posted strong days amid a search for quality, finishing close to 1.4 per cent higher. It was positive news for Endeavour Group Limited (ASX: EDV) with the Dan Murphy’s owner jumping 3 per cent on news that executive chairman Ari Mervis had stepped down from the role due to ‘board disagreements’, allowing for a refresh in leadership positions amid a year of change for the group.

Beach Energy gains on capital returns, Northern Star leads gold rally, WiseTech down on acquisition

A weaker-than-expected employment report in the US was behind a renewed rally in the gold price, with the US Federal Reserve now expected to cut rates again as early as September. Northern Star Resources Limited (ASX: NST) rallied by more than 5 per cent and Evolution Mining Limited (ASX: EVN) closer to 2.5 per cent as gold finished above 3,360 US dollars per ounce. Beach Energy Limited (ASX: BPT) shareholders were positive about an increase in the dividend, tripling current levels, even as the company wrote down key assets. Shares gained more than 3.5 per cent after the company, which is heavily owned by Seven Group Holdings Limited (ASX: SVW), cut the valuation on its WA and Victorian assets by 474 million dollars. It also flagged weaker-than-expected production forecasts for the new year. Logistics technology provider WiseTech Global Limited (ASX: WTC) fell by more than 1.7 per cent after completing its largest-ever takeover offer, buying Texan e2Open for 2.1 billion US dollars. Domain Holdings Australia Limited (ASX: DHG)shareholders also fully approved the sale of the business to US giant CoStar Group Inc (NASDAQ: CSGP) in a move that will likely disrupt the local real estate classifieds market.

S&P 500 surges on dip buying, earnings surprise, Indian tariffs to increase, Musk gets huge Tesla pay

Dip buyers stepped into the market this week, pouncing on much stronger than expected earnings results to push the S&P 500 Index (NYSE: SPX) up 1.5 per cent and the NASDAQ Composite Index (NASDAQ: IXIC) close to 2 per cent. The buying was widespread, with NVIDIA Corporation (NASDAQ: NVDA) and Meta Platforms Inc (NASDAQ: META) both adding more than 3.5 per cent, while the Russell 2000 Index (INDEXRUSSELL: RUT) gained 2.1 per cent. The buying came as earnings for the S&P 500 Index (NYSE: SPX) are expected to see a 9 per cent jump, compared to expectations of below 3 per cent. President Trump announced that Indian tariffs would increase due to the nation’s continued purchase of Russian oil, while the European Union (EU) expects an executive action to be announced this week, putting further pressure on the economy. Tesla Inc (NASDAQ: TSLA) gained more than 2 per cent after the board approved a near 30 billion US dollar stock award for CEO Elon Musk in hopes it will refocus his attention on the business. Shares in streaming service Spotify Technology S.A. (NYSE: SPOT) gained more than 5 per cent after the company flagged price increases outside of the US.

Australian market edges lower amid tech and bank declines
The Australian sharemarket ended the week marginally lower as initial optimism from softer local inflation was counterbalanced by global economic concerns. The S&P/ASX 200 Index declined by 80.8 points, or 0.92 per cent, on Friday to finish at 8662, resulting in a modest 0.1 per cent loss for the week. Sentiment was pressured by rising US inflation and new American tariffs. Weakness in the technology sector drove a 2.4 per cent decline, with Xero Limited (ASX: XRO) falling 3.2 per cent, Life360 Inc (ASX: 360) down 3.1 per cent, and WiseTech Global Limited (ASX: WTC) losing 2.4 per cent.

Banks and resources paint a mixed picture
The major banks contributed to the market drag, with Commonwealth Bank of Australia (ASX: CBA) down 1.6 per cent to $175.00, National Australia Bank Limited (ASX: NAB) off 1.3 per cent to $38.41, and Westpac Banking Corporation (ASX: WBC) slipping 1 per cent. Australia and New Zealand Banking Group Limited (ASX: ANZ), however, bucked the trend with a 0.7 per cent gain. Resource stocks were mixed; while Fortescue Metals Group Limited (ASX: FMG) gained 1.5 per cent and BHP Group Limited (ASX: BHP) rose 0.1 per cent, Rio Tinto Limited (ASX: RIO) declined 0.7 per cent. Mineral Resources Limited (ASX: MIN)rebounded 4.4 per cent following a steep fall the day before. In company news, The Star Entertainment Group Limited (ASX: SGR) tumbled 16.4 per cent to an all-time low after a failed asset sale, while ResMed Inc. (ASX: RMD) climbed 1 per cent on strong earnings. Novonix Limited (ASX: NVX) fell 4.4 per cent after shelving a graphite spin-out.

Global markets fall on US jobs miss and tariffs
Global equities retreated sharply on Friday, led by disappointing US jobs data and renewed trade tensions. The S&P 500 Index and Nasdaq Composite Index dropped 1.6 per cent and 2.2 per cent respectively, marking their largest single-day declines since April, while the Dow Jones Industrial Average fell 542 points. Weaker-than-expected payroll growth of 73,000 in July, coupled with downward revisions to previous months, pointed to underlying labour market weakness. The announcement of new US tariffs of 10 to 41 per cent on imports from Canada, India, and Taiwan further dented investor confidence. Corporate performances were mixed: Amazon.com Inc. (NASDAQ: AMZN) slid nearly 8 per cent on weak cloud guidance, Apple Inc. (NASDAQ: AAPL) lost 2.9 per cent despite strong results, while Eli Lilly and Co (NYSE: LLY) gained 3 per cent on drug coverage optimism. All three US benchmarks posted weekly losses.