Positive news from the White House on the severity of the Omicron variant supported another surge in the S&P/ASX 200 (ASX: XJO) on Tuesday, which gained 1%, taking the winning streak to three straight days.
Consumer-facing companies, particularly ASX travel shares, led the way with the sector up 1.6%, slightly behind the healthcare and tech sectors which gained 1.7% and 1.9%, respectively.
Corporate Travel Management Ltd (ASX: CTD) and Webjet Limited (ASX: WEB) were standouts, gaining 5.7% and 4.5%, respectively.
Zip share price surges on update
BNPL player Zip Co Ltd (ASX: Z1P) recovered from Monday’s rout, gaining 9.9% after management delivered a strong update on its global expansion.
The company recorded some $10 billion in annualised volume, with customer numbers jumping another 71% to 9.2 million as a number of regions embrace the delayed payment option for the first time.
RBA holds rates steady
Zip’s low cost of capital supporting the business is set to continue for the foreseeable future, with the Reserve Bank holding the cash rate at 0.1% and reiterating that bond purchases would continue at $4 billion per month, with inflation unlikely to exceed 2.5% until at least 2023.
Whilst a lot of attention is being paid to the omission of a target date, they remain clear that any rate hike will depend on signs of strong wage growth.
Magellan CEO stands down
Magellan Financial Group Ltd’s (ASX: MFG) CEO Brett Cairns announced he would be stepping down from the role for ‘personal reasons’ at a time when pressure continues to grow on the business from external forces. Magellan shares fell 6.4% on the news.
Shares in competitor GQG Partners Inc (ASX: GQG) remain below their IPO issue price, falling 1.7% after reporting a US$3 billion reduction in assets under management in November.
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BOQ margin hit
Shares in Bank of Queensland Limited (ASX: BOQ) jumped another 4.2% despite the CEO flagging a further contraction in net interest margins due to price competition, yield curve volatility and the growing popularity of fixed-rate mortgages.
Carsales confirms guidance
Carsales.com Ltd (ASX: CAR) shares were driven 1.8% lower despite flagging continued ‘solid growth’ in revenue, earnings and profit for FY22.
Investors will now see ‘other investments’ broken out in a venture capital like approach, with assets including Redbook and Placie in this bucket.
IAG back on track
After a tumultuous year dominated by weather events and pandemic shutdown claims, Insurance Australia Group Ltd (ASX: IAG) reaffirmed FY22 guidance for single-digit growth in written premiums and an insurance margin of 10-12%. IAG shares gained 1.4% on the news.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher on Wednesday following a strong lead from US markets overnight. The Nasdaq index was a standout, soaring 3% during the session. To find out more, check out my US stock market report.
