Morning Market Update - 29 November 2019

Pre-Open Data

International Markets vs Australian Market

Key Data for the Week

Key economic data released this week:

    • Thursday – EUR – Consumer Confidence improved from -7.6 to -7.2 for November, in line with consensus expectations.
    • Friday – EUR – Unemployment Rate

S&P ASX 200 Last 12 Months

Australian Market

The Australian sharemarket continued its run of gains, to add 0.2% yesterday, with most sectors closing higher. The Telecommunications sector led the gains. Telstra climbed 4.0%, after several broker upgrades, following the company’s reaffirmed 2020 profit goals

The Health Care sector also had strong gains. Cochlear added 1.2% and CSL gained 1.1%, to be up 10.5% for the month.  

The Materials sector was led higher by mining heavyweights BHP and Rio Tinto, both up 0.4%, while South32 also rose 0.4%. Gold miners were mixed; Evolution Mining lost 3.4%, Saracen Mineral fell 1.0%, while St Barbara added 1.5%.

The big four banks weighed on the Financial sector; ANZ was the worst performer, down 0.8%, Westpac and Commonwealth Bank fell 0.4% and 0.1% respectively, while NAB closed flat.

Cleanaway Waste Management rose 1.5%, to extend its recovery this month. The stock is now up over 10% since the start of November.

The Australian futures market points to a 0.39% rise today.

Overseas Markets

European sharemarkets closed lower on Thursday. French construction companies Vinci and Eiffage fell 0.8% and 0.1% respectively, while UK company CRH plc slipped 1.3%. Sustainable energy companies Vestas Wind Systems and Siemens Gamesa Renewable Energy added 0.8% and 1.6% respectively.

By the close of trade, the broad based STOXX Europe 600 fell 0.1%, the UK FTSE 100 lowered 0.2% and the German DAX lost 0.3%.

US sharemarkets were closed for Thanksgiving Day. Concerns on a US-China trade deal were raised, after US President Trump signed into law a bill supporting protesters in Hong Kong, drawing a sharp rebuke from Beijing. The bill threatens sanctions on Chinese and Hong Kong officials deemed responsible for human rights abuses in Hong Kong. In response, Beijing said it would take "firm counter measures" in what it views as interference in an internal matter.

CNIS Perspective

The emerging middle class of China and the obvious growth in their spending has been a major focus of our attention for some time, and will most likely remain that way for the foreseeable future.

November 11th saw the biggest day in retail trade ever with China’s Singles Day, where online shopping topped US$38.4 billion over a 24-hour period.

The growing wallets of Chinese consumers has resulted in a steady acceleration of their purchasing power over the past 10 years or so, and it would appear a safe bet to assume next year’s Singles Day will even surpass this year’s record.

The Chinese economy may be slowing, but currently retail sales are still growing at over 7% per annum.

It’s therefore reasonable to expect China’s retail spending could double over the next 10 years, assuming 7% annual growth rate is maintained.

The Chinese numbers are impressive, particularly when compared to US retail sales growth of 5% per annum.

Australia’s growth rate to the end of September was a mediocre 2.4%.

As of 31/10/19 BILLIONS

Should you wish to discuss this or any other investment related matter, please contact your Investment Services Team on (02) 4928 8500.


The material contained in this publication is the nature of the general comment only, and neither purports, nor is intended to be advice on any particular matter. Persons should not act nor rely upon any information contained in or implied by this publication without seeking appropriate professional advice which relates specifically to his/her particular circumstances. Cutcher & Neale Investment Services Pty Limited expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale Investment Services Pty Limited or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication.

Cutcher & Neale Investment Services Pty Limited ABN 38 107 536 783 is a Corporate Authorised Representative of Cutcher & Neale Financial Services Pty Ltd ABN 22 160 682 879 AFSL 433814.


Topics: CNIS, Australian Market, ASX, international markets

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