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Our team compiles this daily market report from global sources to highlight key market updates and what they mean for your investment portfolio.
Dow Jones S&P-500 Nasdaq
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The Impact: Reports released in recent days showed strength in manufacturing and jobs, underpinning a narrative of US resilience that has been gaining momentum all year. There is a bearish sentiment in bond markets as predictions on rate cuts are being scaled back due to the latest data and gains in commodities. Investors are now pricing in less than 3 rate cuts by the end of the year, diverging from the Feds prediction of 3 cuts. The services ISM will be released early tomorrow morning. If there is a strong read in the data, like the manufacturing data, there could be further pushback on the predictions of rate cuts, pushing bond yields up. Source: AFR
European stocks shifted lower Tuesday as major markets returned to action after the Easter weekend and investors looked ahead to the start of a new trading quarter. Source: CNBC
The Albanese government will dedicate $1 billion in subsidies, grants and other forms of support to the domestic production of solar panels, including in the coal-rich Hunter Valley. With just 1 per cent of solar panels installed in Australia manufactured domestically, Mr Albanese has deliberately chosen Liddell to launch the policy to assure coal workers they have a future in clean energy. There are no details behind the announcement. Instead, the Australia Renewable Energy Agency (ARENA) will consult the industry to design and deliver the initiative, along with the government. Source: AFR
The European market is buzzing on the M&A news that Formula One parent company, Liberty Media, is set to acquire the motorcycle racing league MotoGP valuing the league at €3.5bn.
MotoGP holding company, Dorna Sports, will remain an independently run company with management retaining ~14% of the equity, but the deal will bring in a parent that has a great track record of reinvigorating sport, most notably F1.
Finally, James references a possible shift in focus toward smaller cap sectors such as miners and resources, as major fund managers and advisors reassess their portfolios. However, he also notes the relative underperformance of smaller caps in contrast to their larger counterparts. Lastly, he identifies China and India as emerging markets worth watching, despite their inherent risks, flagging specific interest in India as an ‘absolutely incredible’ economic opportunity going forward.
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