Bulls vs. Bears

Fed Chair Powell and Lower inflation data fueled optimism of September rate cuts, sparking a shift back into small-caps

Global markets were very quiet this week as the US celebrated independence day, the UK went to the polls, and the ASX saw some inter-sector shifts with the new FY

Australia’s inflation rate surged to 4% in May, the highest this year, driven by significant increases in automotive fuel and electricity prices.

Equities saw mixed performance this week, with AI mega caps hitting record valuations, despite broader market weakness and a cautious outlook from the Federal Reserve.

The AI Mega Caps surge, while the rest of the world burns. Equities were dragged record highs by 2 stocks this week, masking the underlying weakness in the rest of the market and the effect of a more hawkish than expected Fed meeting.

Europe and Canada Central Banks decided to roll the dice with pre-emptive rate cuts, despite inflation being well beyond the target range, while cracks started to show in the US labour market this week

In a week where rising bond yields de-railed the equities rally, Nvidia did its best to single handedly hold up the market.

In a week where rising bond yields de-railed the equities rally, Nvidia did its best to single handedly hold up the market.

Incitec Pivot faces $148M loss; Aristocrat reports strong growth; GrainCorp stabilizes operations. Copper Warrants (ZHGKOB) highlighted as trade of the week amid supply shortages and record prices.

The investor sentiment pattern, in the US equity market in particular, is of extreme selective hearing with any weakness in the economy cheered because it will trigger rate cuts, while any strength in the economy is cheered as “proof” of a soft landing.

The U.S. earnings season continues to unfold with notable performances and surprises. This week, several key companies reported significant shifts in their business dynamics, reflecting broader economic pressures and opportunities. Stagflation concerns persist as U.S. growth decelerates while inflation pressures mount, challenging central banks and impacting global market sentiments.

Things were looking grim mid-week with Meta dropping 16% and the broader market down over 2%
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