Home / Uncategorized / Financial Planner’s morning report – Wednesday

Financial Planner’s morning report – Wednesday

Global sharemarkets continued their incredible rally even as protests and riots continued in the US, following President Trump's call to bring in the military.
Uncategorized

Marching on

Global sharemarkets continued their incredible rally even as protests and riots continued in the US, following President Trump’s call to bring in the military. The Dow Jones added 1% and the S&P 500 0.8%, with two companies increasing for every one that fell. The highlights remained the cyclical businesses, with American Express (AXP:US) and Caterpillar (CAT:US), pushing higher as shutdowns eased.
The ASX 200 recovered 0.3%, despite a mixed day but with most sectors flat it was the retail exposed businesses like Unibail-Rodamco-Westfield (ASX:URW) moving higher. The likelihood of another $500 billion in stimulus in Europe sent the Eurostoxx (SX5E:IND) up over 2.6% on the back of a strong banking sector; ING Groep (INGA:NA) rallied 3%.

Zooming in

Zoom Video Communications (NASDAQ:ZM), the platform that has become ubiquitous during this Work From Home (WFH) experience continued its incredible rally hitting another all-time high and tripling in 2020. Management reported a 169% increase in quarterly revenue to $328 million and now expects the full year result to be $1.775 billion, double that originally forecast.
Australia’s own technology darling Zip Co Ltd (ASX:ZIP), one of the few competitors to Afterpay (ASX:APT) saw its rally close to 40% on Wednesday after announcing the acquisition of New York-based Buy Now Pay Later (BNPL) platform Quadpay, for $403 million. The acquisition will be funded from a $200 million capital raising and position ZIP as a true global player in the sector with some $3 billion in total transaction value expected.

Taking off

The group of Virgin Australia Holdings Ltd (ASX:VAH) suitors was reduced to two on Tuesday, with Bain Capital and Cyrus Capital Partners the lucky two. Both have indicated a preference to retain the Virgin branding and will seek to partner with Richard Branson. The Kerry Stokes owned Seven Group Holdings (ASX:SVW) announced it had acquired a substantial but ‘friendly’ stake in embattled cement producer Boral Ltd (ASX:BLD), once again opening the discussion on acquisition activity.
Amaysim (ASX:AYS), the provider of mobile phone and energy plans through is Click Energy business, refused to comment on rumours of a takeover offer from Origin Energy Ltd (ASX:ORG), but that didn’t stop the share price from increasing 12% for the day. Finally, Wednesday will see the long awaited GDP figures for the Australian economy, with experts predicting a contraction of just 0.2% to 0.3%.
The daily report is written by Drew Meredith, Financial Adviser and Director of Wattle Partners.

  • Drew Meredith

    Drew is publisher of the Inside Network's mastheads and a principal adviser at Wattle Partners.




    Print Article

    Related
    Emerging market resilience paves the way for new opportunities says Amundi

    Despite recent China woes, emerging markets are poised to enjoy a growth advantage over developed peers, creating opportunities for investors across all major asset classes. Countries in Latin America are paving the way for a bout of monetary policy easing in the second half of the year; the prospect of lower interest rates has helped…

    Investor Strategy News | 1st Aug 2023 | More
    Mercer adds new wealth Pacific CEO role to support growth strategy

    The appointment of industry veteran Cathy Hales, who started in the newly created role on Monday, will support Mercer’s growth strategy across investments and retirement in the Pacific region, the company said. Her remit will include the $63 billion Mercer Super Trust.

    Lisa Uhlman | 26th Jul 2023 | More
    Global pensions sketchy on net zero

    A survey of 50 global pension funds shows that many are losing hope of achieving their net-zero goals, and the sector is still “in the foothills” of the transition.

    Lachlan Maddock | 13th May 2022 | More
    Popular