While much ado is made of the science that goes into fund manager research, real assessment puts comparable weight on the art as well according to investment leaders.
While financials and materials dominated trades leading into 2024, the popularity of other sectors like healthcare and information technology followed generational, and even demographic, lines.
Australian market higher on Tuesday, but barely
The Australian share market moved higher on Tuesday, as investors assessed conflicting data releases, one showing weakening consumer sentiment but the other indicating business conditions improving. The benchmark S&P/ASX200 index managed to finish 14.6 points, or 0.2 per cent, higher at 7206.9, with the broader All Ordinaries index tracking that rise in percentage terms, adding 15.1 points to 7402.9.
Five of the ASX’s 11 sectors finished lower, and six finished higher. The mining sector lifted 0.9 per cent, led by the heavyweights, as BHP gained 53 cents, or 1.2 per cent, to $44.19; Fortescue Metals Group added 33 cents, or 1.7 per cent, to $19.96; and Rio Tinto firmed $1.71, or 1.5 per cent. to $114.11. The iron ore producers welcomed a 4 per cent lift in the price, to more than $US117 a tonne, as traders reacted to better-than-expected new bank lending data from China and anticipated more stimulus for the nation’s property sector.
Energy headed in a different direction, with the sector index retreating 1.4 per cent. Woodside Energy gave up 57 cents, or 1.5 per cent to $37.69; Santos slipped 10 cents, or 1.3 per cent, to $7.72, Beach Energy walked back 5 cents, or 3 per cent, to $1.595; and refinery owner Viva Energy lost 23 cents, or 7.3 per cent, to $2.93, as the world’s biggest energy trader, Dutch company Vitol, sold $714 million shares in the company, or 16.1 per cent of the equity.
Gold and almonds a surprise commodity pair
Gold producers also rose after RBC Capital Markets lifted its forecast for the gold price, adding to increasing optimism among brokers for the yellow metal. RBC expects gold to reach US$1,960 an ounce by December next year, which would represent a 16 per cent rise from its previous forecast. Gold currently trades at $US1,921.3.
Investors liked the news, selectively, with Ramelius Resources spiking 5 cents, or 3.9 per cent, to $1.32; Silver Lake Resources adding 1.5 cents, or 1.6 per cent, to 95 cents; Northern Star lifting 10 cents, or 0.9 per cent, to $11.28, and De Grey Mining accruing 2.5 cents, or 1.9 per cent, to $1.325.
On the industrial screens, the major banks were largely becalmed, with National Australia Bank up 6 cents to $29.11; Commonwealth Bank 7 cents stronger at $102.11; ANZ one cent weaker at $25.27; and Westpac one cent higher, at $21.56.
Almond grower Select Harvests was a standout, surging 42 cents, or 10.4 per cent, to $4.45, after the company released an upbeat 2024 crop and market update.
Tech heavyweights lead US indices lower
In the US, markets weakened ahead of the US inflation report due to be released tonight. The blue-chip Dow Jones Industrial Average eased 17.73 points, or 0.05 per cent, to 34,645.99, while the broader S&P 500 index slid 25.56 points, or 0.6 per cent, to 4,461.90, and the tech-heavy Nasdaq Composite index retreated 144.28 points, or 1 per cent, to 13,773.61, as some tech luminaries came under pressure.
Oracle suffered its worst day since 2002, down 13.5 per cent after missing consensus revenue forecasts for the first quarter, while Apple lost 1.7 per cent as it announced design changes to the iPhone 15: the stock is still battling concerns of a possible China shutout.
In the bond market, the US 10-year yield leased 2.4 basis points, to 4.264 per cent, while the 2-year yield was unchanged at an inverted 5.02 per cent.
Gold softened US$8.25, or 0.4 per cent, to US$1,913.39; the global benchmark Brent crude oil grade advanced US$1.42, or 1.6 per cent, to US$92.06 a barrel, and US West Texas Intermediate crude gave up 6 cents to US$88.78 a barrel.
The Australian dollar is buying 64.27 US cents this morning, where it was at Tuesday’s ASX close.
