Home / Asset Allocation / ASX 200 set to open flat on Friday: what Advisers need to know

ASX 200 set to open flat on Friday: what Advisers need to know

The local sharemarket is tipped to open flat on Friday morning, according to SPI futures. 
Asset Allocation

The local sharemarket is tipped to open flat on Friday morning, according to SPI futures.

On Thursday, the ASX 200 finished down another 0.4% following another volatile day, bouncing off lows but benefitting from stronger than expected results out of China.

The weakness was once again driven by the major banks, Westpac (-2.2%) and the Commonwealth Bank (-1.8%) as investors turn away from the sector following flagged dividend cuts and bad debt increases. The merger of TPG Telecom and Vodafone is getting closer after the deal reached FIRB approval.

  • Goodman, Amazon’s domestic partner in logistics warehousing has been a key beneficiary of the move online, reaffirmed its profit guidance for an 11.3% increase in FY20 and maintained its dividend. Goodman stock was up 4% as a result. Macquarie Group (ASX: MQG) provides a quarterly update today.

    What to watch overseas

    Political and economic results are driving markets elsewhere, with another US threat to push back on the Chinese trade deal roiling markets before today’s announcement of another meeting to discuss progress against the agreed terms.

    China appears to be moving on from COVID-19 at full steam, with exports unexpectedly increasing 3.5% in April, following the ramping up of manufacturing capability.

    The US markets rose overnight, S&P 500 up 1.2% and the NASDAQ 1.4%, which takes the latter into positive territory for 2020 — a stunning result. The tech-heavy benchmark is clearly benefitting from the strength and market leadership of the likes of Microsoft, Amazon and Apple. I recently covered Microsoft as one of our “Never Sell” stocks. The gains come despite US unemployment claims increasing 3.2 million for the week, albeit a slowdown on previous results.

    Shares in both PayPal and ride-sharing company Uber rallied, with PayPal adding 7.4 million new accounts in April and reporting the largest transaction day in its history on May 1. Uber’s losses continue to stack up, losing $2.94 billion on $3.54 billion in revenue with cost-cutting ahead.

    Print Article

    A great way to play the booming natural gas market

    Longreach taps into the LNG market supported by projects in Texas & Oklahoma.

    Ishan Dan | 11th Aug 2022 | More
    ASIC levy review targets adviser ‘time-lag’ issue

    The review will consider “the consequences of time lags between regulatory action and cost allocation”, the terms of reference states.

    Tahn Sharpe | 11th Aug 2022 | More
    AMP Advice to ‘break even’ by 2024 as losses soften

    The institutional provider’s AUM and profit lines stayed red in 1H22, but positive signs emerged.

    Tahn Sharpe | 11th Aug 2022 | More
    Advisers urged to tread carefully with ‘wholesale investor’ status
    Staff Writer | 28th Jul 2022 | More
    Top hedge fund award goes to L1 Capital
    Greg Bright | 13th Dec 2021 | More
    MAX Award winners and the new world outside
    Greg Bright | 13th Jun 2022 | More
    INDepth with Andrew Lockhart from Metrics Credit Partners
    The Inside Adviser | 30th Jun 2022 | More
    Quality of advice review focused on advisers, not consumers
    Drew Meredith | 11th Jul 2022 | More