Sunday 3rd December 2023
Bond yields lead ASX (ASX:XAO) to weekly gain, Aus Super dives into Pilbara, Premier upgrades
A rough finish to the week wasn’t enough to reverse a strong finish to November, with both the All Ordinaries and S&P/ASX200 (ASX:XJO) falling 0.2 per cent on Friday. The energy sector was a rare winner, adding 0.1 per cent, benefitting from a quick reversal of supply cuts agreed at the latest OPEC+ meeting. Both the retail and technology sectors weakened, falling 0.8 and 1.1 per cent, with Premier Investments (ASX:PMV) the standout, gaining 3.6 per cent. The company upgraded earnings expectations, albeit on sales 10 per cent lower than the prior year, with chairman Solomon Lew flagging a potential break up of the businesses, which included Smiggle and Peter Alexander to release value in the brands. Australian Super remained in the headlines after the company confirmed it had built up a 5 per cent holding in lithium miner Pilbara Minerals (ASX:PLS) once again flexing its gigantic balance sheet. Over the week, the market managed a 0.4 per gain, buoyed by both the tech and healthcare sectors, up 2.3 per cent.
Dow delivers fifth straight week of gains, Powell off on cuts, Salesforce.com, retailers surge
The Dow Jones managed a fifth consecutive week of gains, finishing 0.8 per cent higher on Friday, despite comments from Fed Chair Powell that rates were unlikely to be cut anytime soon. The S&P500 and Nasdaq also gained 0.6 per cent, as Salesforce.com (NYSE:CRM) and Nike (NYSE:NKE) jumped more than 3 per cent on growing hopes a recession will be avoided. Powell’s comments, while suggesting cuts were unlikely, flagged that policy was already restrictive enough, sending bond yields lower. Shares in Tesla (NYSE:TSLA) fell amid another update on the Cybertruck, while Pfizer (NYSE:PFE) continued their decline. Across the week, the Dow Jones gained 2.4 per cent, the S&P500 0.8 and the Nasdaq 0.4.
Every Ark has its day, Black Friday hopes grow, Europe the next inflation beat
Ark investments was the story of the pandemic, as the hyper growth focused company attracted massive capital flows and benefitted from the technology and venture capital rally. The company has struggled to maintain performance as bond yields rose, but the AI-powered recovery means this could be beginning to turn. The ARKK Innovation ETF gained a record 31 per cent in November alone. After another anemic retail sales result and signs that rates are finally hitting the economy, retailers will be banking on Black Friday sales to boost coffers before the end of the year. In positive news, European inflation sunk below 3 per cent for the first time in several years, contributing to hopes that restrictive policy may be nearing an end.
James is an experienced senior journalist and editor of The Inside Network's publications.
