CommSec

Morning Report 11 Feb 22: Wall St stung as inflation continues to rise

US sharemarkets were weaker on Thursday in response to higher-than-expected inflation data. So called 'megacap' technology stocks led declines. But shares in Disney rose 3.3% in response to earnings. And big banks, which tend to do better in a rising rate environment, out-performed. At the close of trade, the Dow Jones index was down by 526 points or 1.5%. The S&P 500 index lost 1.8%. And the Nasdaq index fell by 305 points or 2.1%.

US treasuries were lower on Thursday (yields higher) in response to higher-than-expected inflation data. Markets are pricing in a greater chance of a 50 basis point rate hike in March. Federal Reserve president James Bullard called for the federal funds rate to lift 100 basis points by July 1. US Treasury sold US$23 billion in 30-year bonds into weak demand at an average yield of 2.34%. US 10-year yields rose by 12 points to near 2.05%. US 2-year yields rose by 27 points to near 1.61%. Yields are trading at the highest levels in more than two years.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Investor Signposts 11 Feb 22: Jobs data is the highlight

CommSec Senior Economist Ryan Felsman previews the economic & financial market events scheduled for the week ahead including the Reserve Bank Board meeting minutes, Skilled job vacancies & US Consumer inflation expectations.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Market Close 10 Feb 22: Market briefly hit 3-week high

While the Aussie market faded from this morning's best levels, the ASX 200 still rose for a third day and is most of the way through its best week in close to one year. US inflation data in focus tonight. 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

 

Mid-Session 10 Feb 22: ASX 200 is firmer but fading from early highs

The Australian sharemarket is lifting for a third day, with the ASX 200 up slightly thanks to strong gains from tech stocks, miners and NAB.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Morning Report 10 Feb 22: ASX to extend gains as stoic Wall St jumps ahead of inflation figures

US sharemarkets were firmer on Wednesday with a fall in bond yields supporting growth stocks. Upbeat earnings and an easing of Russia-Ukraine tensions supported investor sentiment. Of the 316 companies in the S&P 500 that have reported earnings to date, 77.8% reported above analyst expectations, according to Refinitiv data. Shares in Microsoft rose 2.2% with Apple up 0.8% and Tesla up 1.1%. Investors await Thursday's inflation data. At the US close, the Dow Jones index was up by 305 points or 0.9%. The S&P 500 index rose by 1.5%. And the Nasdaq index rose by 296 points or 2.1%.

US treasuries were mixed on Wednesday. There was an easing of Ukraine-Russia tensions and traders await latest inflation data. US Treasury sold US$37 billion in 10-year notes at a yield of 1.905% into strong demand. Treasury will sell US$23 billion in 30-year bonds on Thursday. US 10-year yields fell by 1 point to near 1.95%. US 2-year yields rose 3 points to near 1.37%.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Market Close 9 Feb 22: Market jumps by more than 1% for 2nd day

The Australian sharemarket rose by 1.1% on Wednesday, lifting for a second session thanks to gains across most sectors. CBA, Computershare and Temple & Webster improved strongly after handing down their half year results. 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Temple & Webster’s Half Year Result 9 Feb 22: Shopping spree as Covid lingers

Online furniture and homewares retailer Temple & Webster (TPW) posted a 46% lift in sales between July and December 2021, as the number of active customers expanded to 906,000. TPW has been faced with supply chain challenges, with distribution costs lifting and temporary closures impacting some of the 100 odd factories it works with across the region. It has increased marketing spend over the half. As expected by the market, no dividend was declared by the retailer. Over the past five weeks, sales have jumped by 26% .

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Mid-Session 9 Feb 22: Lift in CBA profits keeps market positive

The Australian sharemarket is only a touch higher this morning for a second day, thanks mainly to investor reaction to CBA's half year results. Temple & Webster (TPW) and Computershare (CPU) are also lifting following their reports.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

Morning Report 9 Feb 22: ASX 200 set to build on Tuesday’s gains

US sharemarkets were firmer on Tuesday. The banking sector rose 1.9% as bond yields lifted to 2-year highs ahead of inflation data on Thursday. Key technology stocks rose with shares in Apple up 1.8% after it announced a contactless payment feature on iPhones. Shares in Amazon rose 2.2% and Microsoft rose 1.2%. At the close of trade, the Dow Jones index was up by 372 points or 1.1% after being up 453 points. The S&P 500 index rose by 0.8%. And the Nasdaq index rose by 179 points or 1.3%.

US long-term treasuries fell on Tuesday (yields higher). US Treasury auctioned US$50 billion in 3-year notes at a yield of 1.592% on demand by foreign buyers. US Treasury will auction US$37 billion in 10-year notes on Wednesday and US$23 billion in 30-year bonds on Thursday. US 10-year yields rose by 4 points to near 1.96%. And US 2-year yields rose by 5 points to 1.34%.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. 

 

Market Close 8 Feb 22: ASX 200 easily recoups Monday’s modest losses

The Australian sharemarket rose by more than 1%, with strong gains from mining stocks, Macquarie Group & Suncorp post earnings.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice. This report is produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.