Advanced Share Registry : Market Update - 24 September 2021


We have been in rally mode for most of the week with Monday as the exception, after Wall St booked their worst day in several months amid concerns about China's property developer, Evergande. We saw a steep sell-off amid concerns that there would be contagion spilling over to other parts of the world. Now some of these concerns have faded for now as stocks try to get back to all time high. Easy monetary policy is still in place after the Fed said that they are looking to taper at the end of the year with investors taking yesterday's decision in stride.

Bank of England kept rates at record lows, but they've indicated that rate hikes are expected to happen from March next year. It shows that the economy is recovering from the pandemic, as they look to temper inflation sitting at 3.2 per cent, above the bank's target of 2 per cent. Global flash PMIs hit the decks which broadly showed a slow down in September, however, back home, the manufacturing PMI jumped to a three-month high from August. Even though manufacturing across the U.S. and in Europe pointed to a deceleration due to the supply chain bottleneck, the outlook looks bright as this is seen as short term. With the major central banks keeping their stance for now, investors were optimistic as their appetite for risk sweetened around a clearer outlook ahead.

Americans filing for initial jobless claims rose for a second straight week, however we are still heading in the right direction for a month which has seasonal elements, that have contributed to the volatility we have seen. In the backdrop, talks in Congress as to how to address the debt ceiling, and settle different views on the infrastructure bill are still ongoing. For now, stocks are clawing their way back, knowing that the Evergande saga is contained for now, however caution lingers on what risk it could bring.

Yesterday, the Australian sharemarket clawed back their losses from Monday closing 1 per cent higher at 7,370 shrugging off global concerns we have seen of late. There was not one sight of red across the sectors with technology and energy stocks as the best performers by 3 per cent and 2.8 per cent respectively. Utilities were not far behind, up 2.1 per cent. There were a few sectors that marginally rose with healthcare, materials, and consumer staples marginally adding over 0.2 per cent. The best-performing stock in the ASX 200 was News Corporation (ASX:NWS) closing 8.4 per cent higher at $32.56 after Rupert Murdoch's media empire doubled its share buy-back program to $1.4 billion (US$1 billion). It was followed by shares in Whitehaven Coal (ASX:WHC) and Corporate Travel Management (ASX:CTD).


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Advanced Share Registry Limited published this content on 24 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2021 07:11:06 UTC.