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Chapter 1: What is the main topic discussed in this episode?
A listener production.
An underwhelming end to the week for the Aussie market. Why did mining and energy stocks finally lift on Friday? And what are some of the key events investors should be watching in the week ahead? Good afternoon. I'm Steve Dagley and it's Friday the 26th of June.
Chapter 2: What were the ASX market movements at the end of the week?
Welcome to the CommSec Market Update. Well, happy Friday, everyone. We've limped across the line today with a small gain, it seems.
Chapter 3: Why did mining and energy stocks rebound on Friday?
The ASX 200 is up by around a fifth of 1% at the moment. Doesn't sound like much, but it's just the second gain in seven days. So we'll take it. And it's been a pretty busy week.
Chapter 4: What economic indicators should investors watch next week?
A lot has happened. Over the past five days, the market has certainly still fallen back. We've lost roughly three quarters of a percent over that period. We've had quite a bit of data coming through in the last couple of days, particularly here in Australia on jobs yesterday and inflation on Wednesday.
They both really were mixed and didn't really move the needle on what could be next for interest rates. So Rates are probably on hold for the rest of the year as far as how markets are pricing this in as well. It's going to be data dependent.
So as long as there aren't too many nasty surprises on things like inflation or employment coming through, the market thinks there's only roughly a 20% chance of a rate hike in August, which is the next time the RBA will be meeting.
We also had quite an uninspired lead coming through from Wall Street last night, which was held back in part by stocks like Apple, which actually fell by around 6% in overnight trade. Now, they've decided to raise prices on iPads and MacBooks to basically pass on soaring chip and memory costs. And that seemed to hurt some of those big tech names like Nvidia last night, actually.
And it's already been a pretty difficult week overall for tech, even though there were certain stocks like Micron that bounced back with a solid profit result that was out yesterday. Outside of that, there was some inflation data out of the United States, which for the most part seemed to be well received. I mean, inflation in May increased significantly. further.
It did actually break 4% for the first time in about three years, largely thanks or due to higher energy prices. But the lift was actually a softer increase than expected. So that did contribute to weakening the US dollar and it did help to push some commodities a little higher. So that's perhaps one reason why we've had improvements coming through from a few of the energy and mining stocks.
In fact, across the market today, the 20 best performers have all been either mining or energy companies. Now, that might sound in isolation quite impressive, but we've got to put that into context because it's been a pretty difficult run for resource stocks in general recently. Just to give you an idea, the mining sector as a group has slumped by 10% over the prior six trading sessions.
Gold miners have fallen by 10%, but in just three trading days. So today they're really roaring back thanks to an improvement in the precious metal. Energy stocks have also roughly fallen 5% since Monday, if we don't look at today's move. So there are some gains coming through, roughly half a percent to about 1% for many of these players.
But we are seeing gold miners standing out like Resolute, Regis, Newmont, Aurobanda Mining, Emerald Resources, Volt, and many others. They are certainly dominating the winners list. Outside of that, we're also seeing solid improvements coming through from defensive areas like the utilities, which are up about 1%. Consumer staples up by a little more than 0.8% and property trusts are also higher.
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