News

Global markets finished the week on a positive note Friday, as US markets (S&P 500 +0.2%) closed at record highs following mixed economic data – with investors becoming less concerned around inflation fears.

The consumer price index rose +0.5% for the month of July (as expected) and +5.4% for the year to July, which provided reassurance to the market that interest rates could remain relatively stable.

We remain BUY rated on QBE as it is still reasonably priced on a 13x price to earnings ratio, paying a dividend yield of 3%.

As widely anticipated, the US Senate finally passed the infrastructure bill, worth about $1 trillion with $550bn of new spending, seen as a political win for President Biden, but it still faces some hurdles to pass in the House before being implemented.

Global markets were higher overnight, with the US market (S&P 500 index +0.6%) at all-time highs as several solid earnings results boosted sentiment ahead of tonight’s monthly US unemployment data (nonfarm payroll report).

Positive US jobs data pushed cyclical stocks higher (Financials led gains +2.0%), while rising bond yields saw growth and defensive stocks underperform.

Insurance and banking stocks supported the ASX yesterday, making up for falls across a broad range of sectors as earnings season moved up a gear.

Global markets were mixed overnight, with the US market (S&P 500 index -0.5%) weighed down by a day of weaker earnings and as a private jobs report coming in lower than expected.

Global markets were mixed overnight, with the US market (S&P 500 index -0.2%) down on softer than expected US manufacturing growth data & on-going supply constraints.