Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Financial Planner Morning Report – global markets mixed
The ASX 200 is likely to open slightly lower on Tuesday according to the Sydney Futures Exchange.
Global markets a little choppy
Markets were mixed around the world on Monday, the Nasdaq continuing its relentless charge, up 0.8%; the S&P 500 rose 0.1%.
European markets were weaker with the German Dax and FTSE both improving slightly, but the most strength was in Asia where the Nikkei rallied 1.1% and the ASX 200, 1.3%. The ASX rally was broad-based with every sector increasing for the day on the back of easing lockdowns around the world.
Oil improved to $30 per barrel sending shares in Santos Ltd (ASX: STO) and Woodside Petroleum Ltd (ASX: WPL) up around 2%. Global hearing implant leader, Cochlear Limited (ASX: COH), added significantly to the market, rising 5% as elective surgeries around the world began to open up.
China off-balance-sheet debt reopens
Amid continued discussions with the US, the Chinese central bank announced it would continue to support the domestic economy with a view to maintaining employment and seeking to remove poverty in 2020. A lofty goal. Reports indicated that the economy is once again relying on off-balance-sheet borrowing by domestic companies, called Local Government Finance Vehicles (LGFV) with issuance up to $206 billion for April.
UK PM Boris Johnson reduced restrictions whilst announcing a potential 14-day quarantine for all arrivals, impacting airlines including EasyJet.
It was a busy day for Australian companies, Macquarie Group Ltd (ASX: MQG) rallied 6% as management announced it was relaunching its $400 million raising via a long-dated preference share, suggesting market conditions were quickly improving.
US Cinema owner AMC Holdings was rumoured to have received a takeover offer from Amazon, sending the shares up 38%, whilst cable companies including Comcast and Charter are benefitting similarly to Telstra Corp Ltd (ASX: TLS) as consumers seek to install faster broadband connections.
Retailers in Australia also saw signs of improvement, shares of Kathmandu Holdings (ASX: KMD) rose 14% and car sales aggregator AP Eagers Ltd (ASX: APE) jumped over 10%.
This report was written by Drew Meredith, Director of Wattle Partners.
