.svg "close (3)"){kind=small}
Image Source: Adobe Stock
Morning Research Notes - 16.12.24
Wall Street saw mixed results yesterday as the Nasdaq Composite reached a record high of 20,173.74, driven by strong performances in the tech sector, while the Dow Jones Industrial Average fell 0.3% and the S&P 500 rose 0.4%. Major commodities had a mixed day yesterday: Spot gold closed down 1.2% to $US2,648.9 per ounce, and Iron Ore ended the day 1.2% lower to close at $US104.8 per tonne. Contrastingly Brent Crude closed 1.3% higher to $US74.4 a barrel.
On Monday, the Nasdaq Composite hit a record high of 20,173.74, driven by strong tech performances, with Broadcom surging over 10% and Tesla reaching a new record. Meanwhile, the Federal Reserve is expected to cut interest rates by 25 basis points, bringing the total reduction to 100 basis points in 2024, with investors closely watching future easing plans amid persistent inflation and a resilient labour market. Individual stocks saw mixed results: Ford fell 4% after a downgrade, Capri Holdings rose 4% on potential brand sales, and Honeywell gained over 3% on news of a possible aerospace division spinoff.
The Australian stock market closed lower on Monday, with the ASX 200 declining by 0.56%. The bearish momentum was reflected across major sectors. Materials, Info Tech, Healthcare, and Utilities all closed in the red, falling by 2.04%, 0.99%, 0.19% and 0.01%, respectively. In contrast, Financials managed to notch gains, rising by 0.17%. Major commodities had a mixed day: Aluminium and Zinc closed up, ending the day 0.49% and 0.72% higher respectively. Contrastingly, Copper and Nickel fell 0.55% and 1.06% respectively.
Chart of the day
The latest return number of 7.7% per annum for Europe residential is likely now close to the cycle peak, offering a compelling entry point for new equity. With residential yields expected to gradually trend inwards again from 2025-2026, this should further support the upside potential for capital values. By comparing this return outlook with the sector’s calculated required return, CBRE's Risk Adjusted Real Estate (RARE) tool assesses whether an investor is being adequately compensated for the risk they are taking. With European residential now screening well, both relative to all property and on an absolute basis, the RARE model suggests it’s an excellent time to be deploying capital.
Source: CBRE
If you want to receive our top 3 income stocks click on the button below:
Invest Well,
Australian Stock Report
This report has been prepared by Atlantic Pacific Securities Pty Limited trading as ASR Wealth Advisers ABN 72 135 187 085 (“ASRW”) CAR 339207 of Amalgamated Australian Investment Solutions Pty Ltd (AAIS) (AFSL 314 614 - ABN: 61 123 680 106) and distributed with its consent by Australian Stock Report Pty Ltd ABN 94 106 863 978 (ASR) AFSL 301682. ASRW and ASR are part of Amalgamated Australian Investment Group Limited ABN 81 140 208 288. Whilst the information presented herein is believed to be reliable and sourced from public sources thought to be reliable, neither ASRW nor ASR make any representations as to its accuracy or completeness. This report is provided for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any financial products or to participate in any particular trading strategy. Any advice perceived to be included within this report is provided on a general advice basis only and therefore it does not take into account personal financial situation, objectives and needs of any individual. Before making any decision about financial products, investors must consider whether it is appropriate for them in light of their personal circumstances and seek professional investment, tax, legal and/or personal financial advice. Where applicable, investors should obtain and consider a Product Disclosure Statement, prospectus or other disclosure material relevant to the financial product before making a decision to acquire it.
ASRW’s, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Opinions, estimates and projections constitute the current judgement of the author as at the date of this report. They do not necessarily reflect the opinions of ASRW or any of their related entities, must not be seen as an endorsement in any way and are subject to change without notice. ASRW has no obligation to update, modify or amend this report or otherwise notify a recipient if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate. Target prices are inherently imprecise and a product of the analyst’s judgement. Prices and availability of financial products are subject to change without notice and investment transactions can lead to losses as a result of price fluctuations, extreme volatility and other factors. If a financial product is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely affect the investment.
Investing in financial markets involves risk and investments may go up and down. The payment of income and the return of capital are not guaranteed. Past performance is not an indicator of future results. Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that offer fixed or variable interest rates. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adverse macroeconomic shocks that may impact the market value of any investment. Counterparty exposure, issuer creditworthiness, client segmentation, regulation, changes in tax policies, currency convertibility and settlement issues related to local clearing houses are also important risk factors to take into consideration.
The opinions and recommendations in the research report are based on a reasonable assessment by the research staff member who wrote the report using information provided by the product issuer and generally available in the market. ASRW’s research staff are well qualified and give their opinions and recommendations on reasonable grounds and based on the information available to them. ASRW’s research staff are remunerated by salary and do not receive any commissions or fees. Annual bonuses may be paid on a discretionary basis and as relevant to their role. Employees and/or associates of ASRW, ASR and their related entities may hold one or more of the stocks, securities or investments reviewed in this report. Any personal holdings by employees and/or associates of ASRW, ASR and their related entities should not be seen as an endorsement or recommendation in any way. For information about ASRW, its financial services and Financial Services Guide, please visit www.asrw.com.au .
