Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

S&P/ASX 200 Monday report – shares to open higher

The S&P/ASX 200 (ASX: XJO) is tipped to open higher on Monday morning, following confirmation that Joe Biden won the US election count.

ASX 200 racing higher amid US election backdrop

Last week finished where it began with the ASX 200 adding 0.8% taking the gain to 4.4%, with every sector finishing the week higher. The key drivers were real estate (+8.3%) and consumer discretionary (+6.8%) businesses as a combination of loosening border restrictions and the RBA’s interest rate decision was greeted positively.

Friday saw investment bank Macquarie Group Ltd (ASX: MQG) delivers its HY21 earnings result, with profit falling 32% for the first half to $985 million. It has been a solid year in difficult conditions. The annuity-style asset management and banking businesses saw revenue slip just 7% to $1.6 billion, whilst the market-facing capital raising business fell 42% to $672 million. As has been the case across the sector, impairments of $447 million on Macquarie’s loan books were the biggest detractor.

In my view, the US election result bodes well for Macquarie, with increasing likelihood of an infrastructure deal coming to fruition, along with a renewed focus on renewable energy sources, where Macquarie is a specialist. Management declared a $1.35 dividend with shares finishing 2.3% higher.

Featured video: Interview with Dr Sam Hupert, CEO Pro Medicus

US markets deliver strongest week since April

The US markets finished flat on Friday, but it was a week for the ages, the S&P 500 and Nasdaq finishing 7.3% and 9.0% higher, respectively, as the ‘risk on’ mood returned in earnest. This was the strongest week since April and was once again driven by the big technology names.

The market was also buoyed by a fall in the US unemployment rate to just 6.9%, far better than the 7.7% predicted, suggesting the economy is returning to normal despite record COVID cases.

News Corporation (ASX: NWS) led the US and Australian markets for the day, finishing 13.7% higher. The driver was evidence that its digital transformation was beginning to pay off. Management reported just a 10% drop in revenue, with traditional media losses offset by 45% growth in its digital real estate division, 47% growth in the Dow Jones division, which owns Barron’s and the WSJ, and publishing revenue moving 13% higher.

My top takeaways for ASX investors

The saying goes that forecasts tell us more about the forecaster than the future, and last week couldn’t have better confirmed that statement. Headlines of a Democrat ‘Blue Wave’ and predictions of huge margins against the Republicans were once again found wanting.

My first takeaway from the week is that both the polling and economist professions may need to rethink their approach, with 2020 seeing consistent misjudgements in bold forecasts.

This leads to my second takeaway, being the importance of never basing investment decisions solely on ‘expected events’, with those who sold out of markets due to the threat of an uncertain election once again missing out on significant returns. 2020 has once again shown us that there is always a reason to sell, but it typically isn’t the best decision.

My final takeaway from the week is the growing threat of China for the Australian economy. The week saw as many as seven new export commodities receiving a soft ban, with China ramping up the economic pressure at a difficult time for the immigration driven Australian economy.

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.