The key takeaways from the last 24 hours
ASIC takes action against Macquarie (ASX:MQG), Commonwealth Bank (ASX:CBA) delivers again, All Ords (ASX:XAO) gains
The local market managed to eke out a small gain on Wednesday, albeit not as exuberant as the prior day gains in the US. Some experts are suggesting Australia’s correlation to global tremors may be slowing amid a softening of the trade war, but only time will tell.
The All Ords (ASX:XAO) managed to add just under 0.1 per cent, with the energy and technology sectors gaining more than 1.5 per cent respectively, while the consumer discretionary sector took a hit from a weakening gaming market behind Aristocrat Leisure (ASX:ALL). But all eyes were on Macquarie Group (ASX:MQG) as shares fell by more than 2 per cent following news that the corporate regulator, ASIC, was suing Macquarie Securities, a division of the group, for misreporting millions of short sales for a period of 15 years. It was a positive story for the Commonwealth Bank (ASX:CBA) with shares gaining on an otherwise quiet day. The company delivered a 6 per cent increase in cash profit to $2.6 billion, benefitting from an increased technology spend, while business loans surged 9.1 per cent for the quarter, in a stunning result.
Life360 (ASX:360) surge continues, Aristocrat in slowdown, Bain pulls out from the Insignia chase
Gaming machine maker Aristocrat Leisure (ASX:ALL) sunk heavily during the session, as management reported a significant weakening in profitability and revenue growth, with the former growing just 0.1 per cent on the prior year. Revenue was 9 per cent higher, albeit well below what the market was expected, with shares taking a hit despite a boost to the dividend. Tracking software Life360 (ASX:360) continued it’s massive rally, gaining more than 10 per cent once again as member growth continues at a faster pace than anticipated.
Shares in oil producer Woodside (ASX:WDS) gained more than 3 per cent on news that Saudi giant Aramco was considering taking an equity position in the massive Louisiana LNG project, which would further derisk it’s delivery. While fund manager and financial advice firm Insignia (ASX:IFL) tanked on news that PE firm Bain Capital had walked away from its bid, shares were down 15 per cent as only one bidder remains.
Nasdaq, S&P500 rallies slow despite more trade deals, EToro surges, Super Micro streak continues
The Nasdaq 100 posted the strongest gain overnight, rallying 0.6 per cent, with the S&P500 adding a more modest 0.1 per cent as shares in the Magnificent Seven surged strongly once again, led by NVIDIA (NYSE:NVDA) which added more than 4 per cent. The news comes amid further trade and investment deals made with President Trump including US$243 billion from Qatar that will be invested in the country. This marks a near 22 per cent jump from last month’s lows along with a strengthening USD. Super Micro (NYSE:SMC) added another strong session after announcing another major deal with Saudi data firm DataVolt, while newly listed trading platform EToro, gaining close to 30 per cent as it traded for the first time as a public company.