Jake Elmhirst from Coller Capital speaks to James Dunn from The Inside Network on secondaries’ role in the private equity market. The Inside Adviser
The alternatives sector is unique in that it’s largely defined by what it’s not. Accordingly, how you fit alternatives within your existing asset class structure will depend on relativity, and how the investments interact with the other asset classes according to Atchison’s Kev Toohey.
All Ords (ASX:XAO) sinks on China, rates weakness, Liontown surges again
Both local benchmarks, including the S&P/ASX200 fell 1.2 per cent on Thursday, as pressure continues to build from poor global economic data. A surge in bond yields in the US, on the back of higher oil prices, has hit valuation and growth hopes once again, while further signs of slowing growth in China, hit the materials sector, which fell 3.2 per cent. Communications, led by Telstra (ASX:TLS) was the strongest performer, falling 0.2 per cent. Takeover target Liontown (ASX:LTR) gained another 9 per cent amid news of a major block trade in shares of the lithium miner, with fingers pointed at Gina Rinehart’s group as a potential second bidder. The likes of BHP (ASX:BHP) and Perpetual (ASX:BHP) fell heavily after moving to ex-dividend, with the former down 5.2 per cent. This was exacerbated by a further weakening of iron ore prices as Chinese steel mills report growing losses.
China trade slows, Chevron strike on hold, trade surplus narrows
All eyes remain on the Chinese economy, with the latest data showing a sharp slowing in foreign trade. China exports fell 8.8 per cent in August, while imports contracted by 7.3 per cent, however, this was generally the summer break in most parts of the world. Woodside (ASX:WDS) fell another 1.5 per cent as positive news spread in the oil and gas sector. Unions have now stepped back from potential strike action at Chevron’s massive Gorgon and Wheatstone projects in WA, avoiding disruption to some 7 per cent of global LNG supply. Global gas prices fell 10 per cent as a result. Commodity trade remains central to Australia’s economic strength, with the trade surplus narrowing to $8 billion in July from $11.3 billion on the back of a jump in exports. Ship builder Austal (ASX:AST) offered some positive news, recording a US$91 million contract for the construction three new vessels for the US Navy.
Gains fade into close, inflation results ahead, jobless claims fall, Disney, Google, Apple fall
Concerns of a restarting of rate hikes sent most benchmarks lower into the close, with the Nasdaq falling 0.9 and the S&P500 0.3, while the Dow Jones outperformed, adding 0.2 per cent on a strong energy sector. Jobless claims continue to reflect an incredibly resilient economy, but bond yields are hitting growth and valuation hopes. Apple (NYSE:AAPL) shares fell by close to 4 per cent after the Chinese government announced a ban on using iPhones for work purposes by official members. Google (NYSE:GOOGL) had a similar experience, with shares weakening after the company indicated they would require political parties to disclose AI-created content in their ads and publications. General Motors (NYSE:GM) remains at risk of a significant disruption, with the threat of a labour strike in search of 10 per cent wage increases pushing shares 2 per cent lower. CPI results lie ahead.
