Welcome to our five-minute recap of the trading day, and how the experts looked at it.
number: The ASX 200 closed all of Thursday’s losses with a 1.9% rebound to 7075.1, but that wasn’t enough to stop it from ending in the red for the fourth week in a row. On Friday, every sector closed in the positive area. Consumer staples was the only sector that did not gain at least 1%, while the tech sector was leading the rebound with 7% growth.
Lifter: Block Inc. 15%, Life360 14.3%, Polynovo 14%
Backwards: IGO -3.5%, Rees -3.1%, Gold Road Resources -2.3%
Downfall: Positive Wall St. futures helped the ASX 200 close at its intraday high on Friday, ending overnight market-boosting comments from Federal Reserve Chairman Jerome Powell. He downplayed market concerns, once again, that the Fed would resort to more aggressive interest rate hikes this week after releasing another set of poor inflation numbers.
But there’s more for investors to be concerned about.
Iron ore had its biggest weekly fall since mid-February as China’s spreading virus restrictions and a worsening asset crisis hit demand and shrank the materials sector by 4 per cent for the week.
Rob Almeida, MFS Investment Management portfolio manager, said the broad-based market retreat – which includes the energy sector in Australia – could also show that equities and crypto are no longer the only games in town.
“With higher rates, cash is becoming a viable alternative to riskier assets, which can lead to higher asset-class relationships,” he said. On the right signal, the CBA raised rates on its deposit accounts for 2 million customers from 0.05 percent to 0.3 percent.
“Going forward, unlike in recent years, investors’ quality of individual securities will likely matter more to the overall portfolio returns to which they are allocated to the broader asset classes,” he said.
The crypto currency market also declined this week and experts believe that this time is indeed different. Cryptos such as Bitcoin joined the broad sell-off that robbed more than $US1 trillion of value from the region, but more importantly, so-called stablecoins such as TeraUSD failed to withstand market pressure.
Daniel Sekers, head of crypto platform YourPortfolio, said that the selling pressure confirms that crypto markets are similar to investment markets and subject to similar market pressures.
“While many say crypto is not influenced by economic forces, I categorically disagree. It is an investment asset like any other, which will drive its liquidity just like any other, especially when mainstream investors consider it. start adopting.
Today’s thought: “If I had a wish list, I would have three or four things on it—the first would be a very clear energy policy for this country, and it would be linked to the second wish list which is a very clear decarbonization policy,” Orica Chief Executive, Sanjeev Gandhi.
You may have missed: Acquisition target, Vertus Health, issued the downgrade on Friday with a reminder that while Covid may have grabbed headlines, it remains a lively issue for both businesses and their customers.
“COVID-19 is evolving and presenting challenges,” it said. “The risk of further COVID-19 related, or other market disruption, exists in Q4 FY22 (Q4 of the 2002 fiscal year) with greater month-to-month variation than experienced in the previous two years “