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.
Down the Snake, Three Days Straight
The Australian sharemarket slid for a third straight day on Thursday after the Bank of Canada followed the Reserve Bank of Australia by lifting interest rates to beat high inflation, heightening concerns that the US Federal Reserve will lean hawkish, too.
The benchmark S&P/ASX 200 softened 18.3 points, or 0.3 per cent, to 7099.7, while the broader All Ordinaries also turned tail, down 22.1 points, or 0.3 per cent, to 7289.2.
Financial stocks had a mixed day, after ratings agency Fitch downgraded its view of Australian and New Zealand banks to “deteriorating” from “neutral,” and flagged concerns about earnings and asset quality. National Australia Bank dipped 14 cents, or 0.6 per cent, to $25.16 and ANZ weakened 5 cents, or 0.2 per cent, to $22.68; but Commonwealth Bank firmed 20 cents, or 0.2 per cent, to $95.89, and Westpac gained 16 cents, or 0.8 per cent, to $20.19. Macquarie Group fell $1.58, or 0.9 per cent, to $170.66.
Consumer discretionary stocks were also under pressure, with Domino’s Pizza down $1.60, or 3.4 per cent, to $45.75; Harvey Norman 9 cents, or 2.7 per cent, softer at $3.23; Wesfarmers down 54 cents, or 1.1 per cent, to $47.46; and jewellery chain Lovisa giving up $1.03, or 5.2 per cent, to $18.77.
Coal, iron ore boost resources
The mining heavyweights had a spring in their step, following iron ore prices rising 1.9 per cent to $US109.90 a tonne in Singapore, its highest since April 21. Iron ore has been strengthening since May on expectations of further Chinese stimulus, and on the back of the latest rise Rio Tinto firmed $2.37, or 2.1 per cent, to $112.3, BHP Group added 51 cents, or 1.2 per cent, to $44.13 and Fortescue Metals advanced 34 cents, or 1.7 per cent, to $20.50.
Rising prices – in the short term, at least —also flowed through the coal sector, with Whitehaven Coal jumping 34 cents, or 5.5 per cent, to $6.48; New Hope Corporation up 43 cents, or 8.6 per cent, to $5.43; Yancoal Australia lifting 20 cents, or 4.4 per cent, to $4.70; and Stanmore Resources gaining 11 cents, or 4.3 per cent, to $2.67.
In lithium, producer Pilbara Minerals appreciated 8 cents, or 1.7 per cent, to $4.72, while fellow producer Allkem slid 4 cents, or 0.3 per cent, to $15.35. Mineral Resources, which mines iron ore and lithium, lost 19 cents, or 0.3 per cent, to $69.16, while IGO, which produces nickel and lithium, walked back 14 cents, or 1 per cent, to $14.22.
In energy, Beach Energy rallied 4.5 cents, or 3.4 per cent, to $1.35; Woodside Energy rose 39 cents, or 1.1 per cent, to $34.79; Santos added 5 cents, or 0.7 per cent, to $7.44; and Brazilian-based producer Karoon Energy strengthened 2.5 cents, or 1.3 per cent, to $1.975.
S&P hits 2023 closing high
In the US, the broad S&P 500 index achieved its highest closing level so far in 2023, gaining 26.41 points, or 0.6 per cent, to 4,293.93. The 30-stock Dow Jones Industrial Average added 168.59 points, or 0.5 per cent, to close at 33,833.61, while the tech-heavy Nasdaq Composite index rose 133.63 points, or 1 per cent, to 13,238.52.
On the bond market, the US 10-year Treasury yield dropped 7.7 basis points to 3.72 per cent, while the 2-year yield eased 2.9 basis points, to 4.538 per cent.
Gold gained US$21.32, or 1.1 per cent, to US$1,965.78 an ounce, while the global benchmark Brent crude oil grade shed 99 US cents, or 1.3 per cent, to US$75.96 a barrel, and US West Texas Intermediate oil lost 30 cents, or 0.4 per cent, to US$70.99 a barrel.
The Australian dollar is buying 67.14 US cents this morning, up almost half a cent from yesterday’s ASX close, when it was trading hands at 66.66 cents.
