View our Blog
Felix Gold
Far East Gold
Far East Gold
Wellnex Limited
Propell Holdings Ltd
Prescient Theraputics
Site
TRIBE
MDF Global Limited Q&A
MDF Global Limited Q&A

Note from the MD: Markets rattled after RBA lifts rates above expectation

Tuesday was one for the history books – the Reserve Bank pushed the cash rate up for the first time since November 2010.
Tuesday was one for the history books – the Reserve Bank pushed the cash rate up for the first time since November 2010. That’s roughly 11 years. More than a decade of holding rates flat or cutting them back. To help put that into perspective, the last time rates were increased Harry Potter and the Deathly Hallows: Part 1 was still playing at your local cinema. More importantly, it’s the first time since 2007 that the RBA has made a move like this during an election – something I think says volumes about our current inflation situation. At any rate, the 0.25% jump rattled markets, which for the most part had priced in an increase of 0.15% instead. The benchmark ASX 200 index saw an abrupt sell-off at 2.30pm immediately following the news, and while it briefly began to retrace those losses in mid-afternoon, the market ultimately closed 31 points (0.4%) lower. The XJO has pulled back from trading near all-time highs and has been trading sideways over the past week, albeit with some volatility. The market is aligned with its 50-day MA and 200-day MA in the middle of its recent trading range but is also sitting on a major pivot point. The market may spend a few days within and around the range of its moving averages, however individual sectors and stocks could move in either direction. Soon enough, a large beta move is likely to emerge and shift the XJO 200 points higher or lower again over the course of a few days. For those of you who are keen to keep unpicking this inflation story, the ABS published a slew of numbers this morning, including lending indicators and retail trade figures for March – which showed record sales for the month, with every state except SA noting improvements. Retail sales have been picking up over the past few months, with trade lifting in November, January and February, and only the traditionally busy month of December recording a dip – likely caused by nervous shoppers hoping to avoid the Omicron COVID variant, which peaked in January. A Deloitte report published earlier this year shows retailers are confident that shoppers will be coming back, but their priorities have altered during the pandemic with many prioritising ‘experiences’ over goods and products. That’s certainly a trend worth keeping an eye on. One investor looking for opportunities that benefit from inflation is Romano Sala Tenna, a senior portfolio manager at Katana Asset Management – one of Australia’s leading fund managers. Romano will be joining us this Friday, 6th May, at 12pm (AEST) for The Insider: Meet the Fund Manager webcast, where he’ll provide insights into how Australia’s businesses are bracing for a potential economic downturn. He’ll also discuss some of the key stocks in Katana’s portfolio that fit into the fund manager’s GFC-defying, multi-style investment strategy. To join us for this session, click here.
Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement at www.reachmarkets.com.au and the relevant Product Disclosure Statement, Prospectus or offer documents to understand the features, risks and returns associated with the investment. Reach* may have a material interest in and may earn fees or brokerage from any securities referred to in business or in which we seek to do business with. Please refer to the relevant offer documents for full details. Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on the information we provide if you are confident that you fully understand what you are doing. Past returns do not always indicate future returns, and it is also possible to make significant losses. There is always a risk of loss when trading and investing. *Reach refers to Reach Markets Pty Ltd (ABN 36 145 312 232) (CAR No: 431191), Reach Corporate Pty Ltd (ABN 76 638 960 540) (CAR No:1281636), Reach Trading Pty Ltd (ABN 16 615 714 442) (CAR No.1265855), R Corporate Pty Ltd (ABN 50643404871) (CAR No. 1290551) of Reach Financial Group Pty Ltd (ABN 17 090 611 680) who hold an Australian Financial Services Licence (AFSL) 333297.

This Week’s News

News

31st May 2024

Top geo backed by leading resources funds believes he has discovered a potential new gold-copper district

News

8th May 2024

BHP Xplor winner coming to the ASX

News

4th May 2024

AI Industrial Revolution: Aussie company unlocking AI for multinationals

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.

Close
Search

Hit enter to search or ESC to close

cookie By using this website, you agree to our cookie policy. Close