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Inflation & rate concerns weigh on markets

Rising bond yields and concerns around the timing of future rate cuts by the Federal Reserve weighed heavily on US markets as investors are increasingly question the likelihood of a June rate cut.

The Dow closed the day down 1 per cent, the Nasdaq closed down 0.95 per cent and the S&P500 finished down 0.72 per cent for the day

Turning to US sectors, Healthcare & Consumer Discretionary were the worst performing sectors closing down 1.6 per cent & 1.3 per cent respectively. The best performing sector was Energy closing up 1.4 per cent for the day.

In company news, Tesla closed down almost 5 per cent after the car manufacturer reported a larger than expected fall in deliveries. According to Bloomberg, Tesla has now produced more vehicles than it sold in seven of the past eight quarters.

In commodities news, oil prices rose almost 2 per cent after briefly trading above US$89 a barrel as tensions continue to rise in the Middle East after the Israeli bombing of the Iranian Consulate in Damascus and the killing of humanitarian aid workers in Gaza. Gold continued its record run to finish the day up almost 2 per cent at US$2298/oz. In soft commodities,  coffee soared to a new record high closing 5 per cent higher on the day.
 
Futures

The SPI futures are pointing to a 0.4 per cent fall.

Currency

One Australian dollar at 7.25am was buying 65.15 US cents.

Commodities

Gold gained 1.8 per cent. Silver jumped 4.47 per cent. Copper added 0.72 per cent. Oil rose 1.70 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.22 per cent, Frankfurt lost 1.13 per cent, and Paris closed 0.92 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.09 per cent, Hong Kong’s Hang Seng gained 2.36 per cent and China’s Shanghai Composite lost 0.08 per cent..

Yesterday, the Australian share market closed 0.11 per cent lower at 7,887.87.

Ex-dividends
RAM Essential Services Property Fund (ASX:REP) is paying 1.4 cents unfranked
Ridley Corporation (ASX:RIC) is paying 4.4 cents fully franked

Dividends payable
Adrad Holdings Ltd (ASX:AHL)
Apiam Animal Health Ltd (ASX:AHX)
CSL Ltd (ASX:CSL)
EQT Holdings Ltd (ASX:EQT)
Humm Group Ltd (ASX:HUM)
Insignia Financial Ltd (ASX:IFL)
K&S Corp Ltd (ASX:KSC)
QANTM Intellectual Property Ltd (ASX:QIP)
Seek Ltd (ASX:SEK)
Treasury Wine Estates Ltd (ASX:TWE)
Worley Ltd (ASX:WOR)
WOTSO Property (ASX:WOT)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.