Home / Alternatives / Positive week for global markets

Positive week for global markets

Alternatives

Another positive week for global markets, property sinks, reality setting in for Atlas Arteria (ASX:ALX)
 
It was another positive week for global markets, the ASX 200 (ASX:XJO) finishing 1.2% higher despite falling 0.5% on Friday.

Similarly, US markets have overcome the ‘will they or wont they’ stimulus discussions, with the S&P 500 and Nasdaq up 0.2% and 0.8% respectively.

It was a mixed day on Friday, with Australia’s largest company falling 0.7% after an otherwise solid week.

The property sector took a major hit on Friday, with GPT Group (ASX:GPT) and Scentre Group (ASX:SCG) down 4.7% and 3.5% respectively as investors grow wary of increasing vacancies and falling rents after a strong rally.

Unibail-Rodamco-Westfield (ASX:URW) bucked the trend rallying 12.1% after a number of large shareholders questioned the discounted capital raising proposal.

Toll road owner Atlas Arteria (ASX:ALX) flagged higher tolls, but was met with a 3.6% fall on regulatory concerns.

After recovering strongly post March some reality is sinking in for toll roads and airports, I’d suggest below average traffic will be the norm for some time to come placing pressure on dividends.
 
Pfizer (NYSE:PPE) vaccine around the corner, Aussie Broadband (ASX:ABB) stags, Tyro (ASX:TYR) makes a deal
 
Management of Pfizer Inc. (NYSE:PPE) flagged their intention to request approval for a potential COVID-19 vaccine in November, which would trigger an emergency FDA review before Christmas; shares finished 3.8% higher.

Morwell second tier NBN retailer Aussie Broadband (ASX:ABB) jumped over 90% on listing yesterday, offering a stark difference to the negative sentiment around market leader Telstra Corporation Ltd (ASX:TLS).

EFTPOS terminal provider Tyro Payments (ASX:TYR) announced an important deal with Bendigo Adelaide Bank (ASX:BEN) through which it would install Tyro terminals in all Bendigo sites, taking the group to the fifth biggest network behind the Big Four; shares jumped 5.9% on the news.

Chinese importers placed further pressure on the Australian economy, flagging bans on imports of cotton, yet Rio Tinto (ASX:RIO) is still likely to hit its export targets with iron ore not yet challenged.
 
RBA setting sights on the dollar, ASX blue chips ex-growth, big week(s) ahead
 
The Reserve Bank finally delivered on calls for more economic support this week, indicating they will be expanding QE policy into purchasing 10-year Government bonds as they seek to stimulate borrowing and investment as well as weaken the currency.

Australia’s ten-year Government bond yield remains one of the highest in the world which has kept our currency stubbornly high, something hurting exports.

Another round of IPO’s this week jumping over 50% are highlighting that ASX blue chips have clearly become ex-growth.

Investors are being forced to chase growth in much smaller companies; in my view the better opportunities lie offshore in Asia and the US.

I spoke with the team at Coolabah Capital during the week, their bond and credit strategies the best performing in the country, the team remains highly positive on hopes for a vaccine and continued strength in property prices, highlighting Chinese demand remains strong.

The next few weeks standout as the most important of the year with a number of vaccine trials due, if successful the market may be in for a strong rally.

Despite headlines, vaccine hopes are in my view more powerful than the US election result




Print Article

Related
Market snapback likely to be ‘short-lived’, short positions warranted: Sage

With bad news priced in, long-short manager Sean Fenton is positive on returns.

Drew Meredith | 18th Aug 2022 | More
‘If we have to, we’ll drive the bus’: Putting money to work in the dislocation

HMC Capital sees “fantastic opportunities” in current market dislocation.

Staff Writer | 18th Aug 2022 | More
Global advice business models on the cusp of change: KPMG

“Fragmented” service models for advice groups will soon coalesce into three distinct business models according to KPMG’s Future of wealth management report.

Tahn Sharpe | 18th Aug 2022 | More
Popular
1
Top hedge fund award goes to L1 Capital
Greg Bright | 13th Dec 2021 | More
2
Advisers urged to tread carefully with ‘wholesale investor’ status
Staff Writer | 28th Jul 2022 | More
3
MAX Award winners and the new world outside
Greg Bright | 13th Jun 2022 | More
4
INDepth with Andrew Lockhart from Metrics Credit Partners
The Inside Adviser | 30th Jun 2022 | More