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May 22 Markets at a glance: Financials & miners lift local shares

Commodity prices continue to support the S&P/ASX200 as demand prospects improved in top consumer China.

Australian shares continue to track higher, bolstered by a rise in the banks and miners, at a seven week and four-month high respectively. 

Australian listed technology stocks are also in focus, tracking gains in their U.S. peers, set for a third consecutive session of gains, with investors awaiting key earnings from U.S. listed Nvidia (NVDA) released tonight. 

Gold stocks are up, while healthcare stocks are on track to snap a three-day losing streak.

Looking at currency markets, the US dollar is steady against a handful of its peers as investors await minutes from the latest Fed meeting for more insight on the central bank’s path of policy.

Policy makers remain cautious, with a number of Fed officials reiterating calls several more months of good inflation data are needed before the US central bank would be comfortable supporting an easing in the stance of monetary policy. US PCE data due on May 31 will be crucial for rate cut expectations.

Across the ditch, the Reserve Bank of New Zealand has held the OCR steady at 5.5% with the central bank forecasting annual consumer price inflation will return to within the Committee's 1 to 3 percent target range by the end of 2024. However, policy makers cautioned services inflation is receding slowly, and expected policy interest rate cuts continue to be delayed.

In Australian corporate news, Webjet (WEB) shares have touched a 4-year peak and are the top gainer on the local benchmark. This as the company reports full year underlying NPAT of $128.4 million, up from the $69.9 million reported a year ago.

Underlying earnings also soared, up 40% with the travel company flagging a strong start to FY25 trading and earnings.

In a statement to the market, Webjet also said it is exploring a separation of its two leading divisions, WebBeds and Webjet B2C through a demerger.

On the flipside, Australian listed shares of Eagers Automotive (APE) are among the days worst performers, at one stage nearing an 11-month low of $9.87/share after the automotive retailer flagged lower returns from its retail segments in the first half of 2024, with higher costs expected due to raised levels of new inventory and higher interest rates compared with early 2023.

 

All prices and analysis at 22 May 2024.  The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer.  This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.  Past performance is not a reliable indicator of future performance.  Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB.  Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.


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