News

US markets (S&P 500 Index +1.4%) rose strongly overnight on light trading, as market attention remains focused on Fed Chair Powell’s Jackson Hole address tonight. Expectations are that the Fed will be aggressive with monetary policy going forward, to bring down inflation to its 2% target. US second quarter GDP was revised up slightly indicating a fell -0.6% year on year, less than -0.9% that was expected, and coming in better than the steeper -1.6% contraction in the first quarter. On the flip side, jobless claims data came in stronger than expected suggesting the US economy is still in a strong position (particularly the employment market)  – giving the Fed extra capacity to continue its hawkish tilt. The session saw all sectors rise, with materials, communication and tech leading gains, as the NASDAQ index rose +1.7%. European markets (Stoxx 600 Index, +0.3%) closed higher, on a more mixed day of trade, with strong gains for oil and gas stocks offset by losses from retail stocks.

US markets (S&P 500 Index +0.3%) ended the overnight session up after starting in the red, ending a 3-day losing streak. Stock traders remained hesitant to make any huge bets ahead of Jerome Powell’s speech on Friday, which may provide clues on how hawkish the Federal Reserve will be in the face of mounting economic challenges. Most sectors were up slightly, with energy and real estate leading gains, while tech and healthcare remained mostly flat. European markets (Stoxx 600 Index, +0.2%) were also up as European gas prices rose another 8%, taking the Dutch  benchmark to a fresh record close. UK gas prices show similar moves. The dire European gas situation has been spilling over into other markets, with US gas prices continuing to trade near record highs. 

US markets (S&P 500 Index -0.2%) edged lower for a third day in a row as nervous investors await the Fed’s guidance on Friday in terms of the interest rate hiking track. There wasn’t much fresh news to drive markets, but weaker US data (services and housing) overnight got the market’s attention, causing some choppy trading conditions Most sectors were lower except for energy and materials. Supply issues continue to push commodity prices higher, as Saudi Arabia threatened to cut production. European markets (Stoxx 600 Index -0.5%) were lower after digesting higher oil prices and weaker economic data from the eurozone. Purchasing managers index (PMI) data out of eurozone contracted for the second month in a row.

US markets (S&P 500 Index -2.1%) fell sharply overnight, suffering the worse single day decline since June as markets prepared for a more hawkish monetary policy outlook from the Fed on Friday –  as more is still required to fight inflation.

BHP shares were higher after delivering a bumper result for the 2022 financial year, beating marketing expectations. BHP delivered its second-largest profit to date with underlying profit coming in at US$21.3 billion, which does not include the profit generated from the sale of its petroleum assets to Woodside. The full-year dividend came in at US$3.25 per share, well ahead of analyst expectations. Iron ore prices continue to remain elevated (on a 10-year view still above $100/tonne) but the standout was coal operations, as its prices have surged recently and held up much better, benefitting from the Ukraine invasion.

Technical Analysis: CEN shares have trended lower over the last year or so, its valuation being sensitive to a higher interest rate environment.

Technical Analysis: We can see Telstra shares have been mostly rangebound between the $3.84 to $4.05 zone most of the time with a relatively low degree of volatility.

US markets (S&P 500 Index -1.3%) fell on Friday, to end the week down -0.8% as investors became more cautious around the higher interest rate backdrop.