Pre-Open Data
Key Data for the Week
- Monday – UK – Industrial Production fell 0.6% in February, which fell short of consensus expectations.
- Tuesday – AUS – NAB Business Conditions and Confidence
- Tuesday – UK – Unemployment Rate
- Tuesday – US – Consumer Price Index
Australian Market
The Australian sharemarket finished yesterday’s session relatively flat, up 0.1%. The Financials sector led the gains, up 0.8%, as Australia’s 10-year government bond yield lifted to over 3.0%.
The Information Technology sector retreated on higher bond yields. Buy-now-pay-later providers fell; Sezzle lost 3.1% and Afterpay owner Block Inc gave up 2.3%, while Zip Co slipped 1.4%. Artificial intelligence company Appen closed down 2.7%, while accounting software provider Xero fell 0.6%.
The Materials sector declined, weighed down by mining heavyweights; Fortescue Metals slid 2.9%, while Rio Tinto and BHP lost 1.2% and 0.5% respectively. Gold miners closed higher; Northern Star Resources lifted 3.9% and Newcrest Mining added 2.9%, while Evolution Mining gained 1.6%.
All four major banks advanced; Westpac and ANZ lifted 0.6% and 0.7% respectively, while Commonwealth Bank gained 1.4% and NAB rose 1.5%. Fund managers were mixed; Australian Ethical Investment gave up 7.2% and Magellan Financial Group lost 2.0%, while Challenger gained 0.2%.
The Australian futures market points to a 0.3% fall today.
Overseas Markets
European sharemarkets eased on Monday. Banking stocks closed higher; Barclays Bank gained 0.9% and Lloyds Bank rose 0.8%, while Deutsche Bank and HSBC lifted 0.7% and 0.6% respectively. The Technology sector underperformed; semiconductor company ASML gave up 3.0% and Infineon fell 2.3%, while STMicroelectronics slipped 0.5%.
By the close of trade, the STOXX Europe 600, UK FTSE 100 and German DAX all fell between 0.6% and 0.7%.
US sharemarkets were also weaker. The Information Technology sector eased 2.6% on inflationary concerns; Apple slid 2.6% and Alphabet fell 3.1%, while Microsoft closed down 3.9% and NVIDIA gave up 5.2% following a broker downgrade.
By the close of trade, the Dow Jones eased 1.2% and the S&P 500 fell 1.7%, while the NASDAQ slid 2.2%.
CNIS Perspective
A latest study from the United Nations shows that global food prices are surging at the fastest pace ever, as the war in Ukraine chokes European crop supplies, as well as soaring energy and fertiliser costs beginning to add pressure to prices.
While already rising since mid-2020, the United Nations’ Food Price Index soared 13% in March, from February prices.
With Ukraine a major European supplier of wheat, corn, barley and sunflower oil, it is of no surprise the biggest price increases were reported for cereals (17.1%) and vegetable oils (23%).
Meat prices were squeezed higher, up 4.8%, also hitting an all-time high, with pig meat prices rising the most since 1995 due to supply shortfalls in Western Europe and a surge in demand in light of the upcoming Easter holidays.
The food price adds to inflationary pain on consumers, feeding through to bigger grocery bills. Countries that are likely to suffer the most are net importers of food, and poorer nations where groceries make up a larger share of consumer budgets.
Should you wish to discuss this or any other investment related matter, please contact your Wealth Management Team on (02) 4928 8500.
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