Markets at a glance 6 January
Around the grounds
The S&P/ASX200 is marching forward, as the banks give the bourse a boost to track higher for a third straight session. Looking at the sectors, financials are up 0.6%, with energy stocks gaining ground after oil prices rose last week in lieu of cold weather in Europe and the U.S. alongside additional economic stimulus flagged by China. The tech plays are also a winner, surging nearly 2% to touch a one-month high tracking their U.S. peers.
On the flip side, the heavyweight miners are under pressure, down over 3% in what could be the sectors worst performance since mid-December after iron ore prices dipped last week on the completion of pre-holiday restocking of feedstocks by Chinese steelmakers. Gold is also lower, as bullion continues under pressure from a strong U.S. dollar.
In the news
Quick check in on some of the stocks to watch in today’s trade. Australian listed shares of Insignia Financial (ASX: IFL) have surged to touch their highest level since February 2022 after the company received a takeover offer from U.S.-based investment manager CC Capital Partners valuing the firm at AU$2.87 billion. The IFL board says it is considering the proposal and is assessing if it is in the best interest of shareholders.
Last December Insignia knocked back an AU$2.67 billion bid from Bain Capital, saying the offer didn’t provide fair value to its shareholders. Shares of IFL gained over 50% last year.
In the smaller end of town, Australia’s Swoop (ASX: SWP) has hit a two-month high after the telecom company inked an agreement to provide wholesale internet services to Internet TV provider Flip TV. The three-year deal is expected to bring in more than AU$10 million in revenue annually starting in January. Shares of SWP lost 30% last year.
Finally, to the broker space, Citi says it remains bullish on data centre operator NEXTDC (ASX: NXT) despite industry concerns, thanks to Microsoft’s unrelenting data centre CAPEX plans. ‘Buy’ rating retained with a target price of AU$20/share. NXT shares gained 11% last year.
Going global
Rounding things out on the global stage, Asia stock markets have started the fresh week and year with a cautious tone ahead of a week overflowing with data which should underline the relative outperformance of the US and support the greenback’s ongoing bull run.
Focus will be on minutes from the Fed’s latest meeting due Wednesday, expected to offer colour on the dot plot predictions, alongside seven top policy makers speaking through out the week. Inflation figures from the EU and Germany will also be of note, while China’s data on consumer prices released Thursday is expected to support the case for further stimulus from Beijing.
With so much event risk on the horizon, investors are wary with the MSCI’s broadest index of Asia-Pacific shares outside Japan relatively flat, while Japan’s Nikkei 225 returned from holiday and has nudged up by 0.1% and South Korean stocks added 0.3% though the fate of President Yoon Suk Yeol seems no clearer.
Stateside, futures are a fraction firmer in early trade. Last year the S&P 500 boasted a total return of 25%, the second year of gains above 20%.
Finally, to the currency markets, the euro remains under pressure, close to last week’s 26-month low, sterling is hovering near an eight-month low, and the US dollar continues to strengthen.
All prices and analysis at 6 January 2025. The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Past performance is not a reliable indicator of future performance. Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB. Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.