Market Update: October 2020

Australian stocks rose 1.9% in October, driven by a 7.5% rise in banks which stand to benefit from the prospect of loosening responsible lending laws. We summarise the main indices below: Rising Covid-19 cases in Europe and the US were a drag on international equities, but news this morning of a potential vaccine has had an enormous impact on financial …

Market Update: September 2020

Australian stocks fell 4% in September, driven by concern the global recovery could stall without more stimulus (a concern amplified by the upcoming US Election) and concern surrounding Europe’s second wave of coronavirus cases as they approach winter. Further adding to the uncertainty was the bombshell dropped on Friday with the President and the First Lady having both contracted Coronavirus, …

Market Update: June 2020

Equities finished the financial year in style, extending an impressive three-month run. We summarise the main indices below:   All up the ASX fell 10.9% in FY20 (7.7% after accounting for dividends), which was the first down year in four years and the worst financial year since 2012. It is hard to believe that it was only February when we were …

Market Update: May 2020

Equities continued their strong run in May as developed countries began reopening and a string of economic data coming out better than expected. We summarise the main indices as at the end of May below: Australian shares backed up a stellar April to edge up a further 4.4%. Resources (+8%) led the way higher on the back of iron ore …

Market Update: April 2020

Equities showed remarkable recovery in April, with Australian shares, in particular, bouncing back nearly 9%! All sectors ended up positive, with Energy (+25%) and Information Technology (+22%) being the strongest performers. We summarise the main indices as at the end of April below: The recovery can mostly be attributed to growing optimism surrounding re-opening the economy and investor sentiment that …

Market Update: March Review 2020

Coronavirus concerns continued to dominate markets through March, causing unprecedented volatility in investment markets. The far reaching economic consequences have effectively wiped out all of the progress made over the last three years. We summarise the main indices as at the end of March below which have now turned to a sea of red: In addition to the above, the …

Market Update: March 2020

To say it has been a volatile month in markets would be an understatement. From their recent highs to recent lows US shares have fallen 13%, Eurozone shares have lost 16%, Japanese shares have fallen 14% and Australian shares have lost 13%. Emergency central bank intervention saw bond yields plunge to new record lows in the US and Australia. Commodity …

Market Update: January 2020

Welcome to the first Market Update for 2020! Australian shares sold off in December, ending 2019 on a sour note for what was otherwise a stellar year for equities. The S&P/ASX 200 Index returned 23.4% over 2019, with the strongest performance coming from the Health Care sector (+43.5%) and the IT sector (+33.5%). Interestingly, the Consumer Discretionary sector (+32.4%) pushed …

Market Update: December 2019

Share markets generally rose higher in November, helped by optimism regarding a US/China trade deal and reasonable economic data. Both US and Australian markets hit record highs, which brings 12-month returns for Australian equities up to a whopping 26%, as summarised below: At the time of writing, it looks like it will be an excellent calendar year for 2019. If …

Market Update: November 2019

Australian shares were in the red in October, dragged down by Information Technology (-3.9%) and Financials (-2.8%), with bank profit growth expected to be moderate due to constrained lending and interest margin pressures. Below we summarise the key indices as at the end of October: Following a strong performance in the September quarter, the outlook appears mixed across most sectors, …