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 unfazed by election as new PM joins inflation talks

Saturday’s federal election barely moved the needle on markets, with the ASX 200 (ASX: XJO) trading more-or-less sideways this week despite the change of government.
Saturday’s federal election barely moved the needle on markets, with the ASX 200 (ASX: XJO) trading more-or-less sideways this week despite the change of government. Monday saw next to no change and Tuesday brought a small, 20-point drop late in trade that saw the XJO finish the day at 7128.8. Meanwhile, our newly elected leader, Prime Minister Anthony Albanese, is already in Japan representing Australia at the ‘Quad’ talks, where US President Joe Biden touted the possibility of scrapping Trump-era tariffs on China as a potential solution to the rampant inflation that’s driven consumer price growth to 40-year highs. China appears to be a consistent theme at the latest round of Quad talks between Albanese, Biden, Indian Prime Minister Narendra Modi and Japanese Prime Minister Fumio Kishida. The four leaders have all expressed their concern over China’s growing economic influence in the region, with Biden even going so far as to promise the Asian superpower will be met with a military response if it tries to invade Taiwan. That will no doubt add to the already tense geopolitical situation weighing on markets at the moment, with the Ukrainian war being the obvious other issue. Markets have been crawling sideways lately, hovering mostly around the 7150 level but its worth noting that implied volatility has dropped back below 20. Volatility has been trending downwards since the XJO tested support at 6950, back on the 12th and 13th of May. But even against this weak market backdrop, rising prices and ongoing conflict, consumers are feeling more confident, buoyed by the historically low rate of unemployment. Household spending has also continued to climb, with data for March published this week by the ABS showing a 6.6% increase on the same month last year, led by spending on ‘recreation and culture’. Spending is now 8.8% higher than its pre-pandemic levels, and has continued to grow as COVID restrictions are wound back. As inflation and interest rates rise, the $423 billion small and medium enterprise (SME) lending industry is seeing a major shift in sentiment with two-thirds of the 2.3 million SMEs in Australia growing frustrated with products offered by banks and 38% indicating that they are looking for better solutions. As inflation and interest rates rise, the $423 billion small and medium enterprise (SME) lending industry is seeing a major shift in sentiment with two-thirds of the 2.3 million SMEs in Australia growing frustrated with products offered by banks and 38% indicating that they are looking for better solutions. Click to join an upcoming webinar with Propell Limited (ASX: PHL), a company that provides SMEs with lending solutions that are faster to access, easier to use and simpler to manage than the slow and complicated alternatives by banks. Growing its customer base 420% to ~2000 customers over the past year and seeing a 211% increase in lending in Q3 of FY22, the company is generating revenue ahead of forecasts and is now entering a phase of escalating organic growth. Tomorrow at 12pm (AEST), we will be joined by Propell CEO Michael Davidson for an online webcast that will look into Propell’s play in a large target market with no direct competition. Click here to attend. Reach Corporate provides Corporate Advisory Services to Propell Holdings Ltd and has been engaged by them to manage their investor communications and may receive fees for its services.
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