Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

S&P/ASX 200 morning report – RBL, CBA & CGF shares in focus

The S&P/ASX 200 (ASX: XJO) is expected to edge lower when the market opens on Friday according to the latest SPI Futures. Here’s what’s making headlines.

ASX rallies, RBA planning more QE

The ASX 200 rallied 0.5% on a mixed day. The key result yesterday was a slightly better than expected unemployment result, the rate increasing to 6.9% despite Victoria shedding another 1.1% of jobs. Queensland stands out with the highest level of unemployment at 7.7% despite being well sheltered from the virus, suggesting border closures are having a large economic impact.

Second was the RBA Governor’s speech in which he effectively locked in another rate cut in November and confirmed that Quantitative Easing policies would be in full effect, pushing from three-year to ten-year bonds as they seek to stimulate lending from the banks.

The financial sector was a key beneficiary adding 0.6%, with the Commonwealth Bank of Australia (ASX: CBA) share price rallying 0.9%. CBA stands out as the bank most able to offset shrinking net interest margins via its strong franchise.

Similarly, the energy sector led the market, up 2.5%, as Chinese and Asian demand for oil points to a stronger 2021 recovery. Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) both finished 4.0% higher for the day.

Pro Medicus signs another deal, Redbubble booming

The CEO of the newly recapitalised Virgin Australia Holdings Ltd (ASX: VAH) unexpectedly stepped down on Thursday, not a great look given the apparent support from private equity during the bidding process.

Radiology software provider Pro Medicus Limited (ASX: PME) jumped 7.7% on news of a $10 million contract with a German hospital, supporting the cross border opportunity for the company.

Challenger Ltd (ASX: CGF) shares continued to rally, adding 2.6% yesterday and 2.1% the day prior after reporting a 46% jump in annuity sales, driven primarily by Japan. The Japanese have been dealing with near-zero interest rates for decades, so the spiking demand for guaranteed income annuities may be a look into Australia’s future.

Elsewhere, Redbubble Ltd (ASX: RBL) reported another 116% growth in marketplace revenue, supporting a 149% jump in gross profit to $64.5 million. The company has been one of the best performing ASX shares in 2020, adding 11.5% yesterday and up 500% for the year as consumers flock to the well-priced, artist-focused products.

RBL share price chart

Source: Rask Media RBL 1-year share price chart

Morgan Stanley delivers, surging COVID-19 cases in Europe

The US markets managed to pare early losses, the S&P 500 and Nasdaq falling 0.2% and 0.7%, respectively. Tech continues to underperform, with smaller companies leading the way as all eyes turn to the recovery.

The banking sector continues to benefit from heightened volatility in markets with the Australian-led Morgan Stanley Inc. (NYSE: MS) reporting 20% growth in sales and 25% in profits to US$2.7 billion for the September quarter. The investment bank has a smaller lending book than its competitors and the recent acquisition of Eaton Vance was highlighted as an alternative to dividends at a time when they are still restricted by the regulator.

The French capital instituted curfews as European case averages exceed the US, sending the Euro Stoxx down 2.5%. Despite concerns around the length of the Victorian lockdown, Australia’s position as a global leader has been solidified.

Back to the US and jobless claims unexpectedly spiked by 53,000 to 898,000 as employers continue to lay off workers even as businesses are allowed to reopen. This trend has been brought forward in the US but we will likely see it in both October and April in Australia.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

Disclosure: At the time of publishing, Drew does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.