Despite retesting its record high of 7,910pts last week, the ASX 200 was down 1.1% this week, reflecting growing doubts over the Fed’s potential rate cuts amidst strong economic data. The index experienced its first four-day fall in five weeks, with only four out of the eleven major sectors ending positively. However, there were bright spots, particularly in the Technology sector, which surged by 2.8%, led by Nvidia’s robust earnings report that buoyed global tech stocks. Amidst this mixed performance, the Australian market remains resilient, showing signs of strength in specific sectors despite broader uncertainties.
In the broader global context, market dynamics have been lively and diverse. The US indices saw a mixed performance, with the Dow Jones down 2.3%, the S&P 500 remaining flat, and the Nasdaq up by 1.4%. The technology sector emerged as a standout performer, especially for the Nasdaq, driven largely by Nvidia’s positive influence. Meanwhile, in Europe, the Euro Stoxx 50, Euro Stoxx 600, and FTSE experienced declines of 0.6%, 0.5%, and 1.2%, respectively. Despite the European Central Bank signalling a potential rate cut in June, divisions emerged over the pace of further easing, particularly amidst strong Eurozone data.
Across the Asia-Pacific region, market movements varied. Greater China and Hong Kong equities saw declines of 2.1% and 4.8%, respectively, following a previous week’s rally. Foreign investment in China continued its slowdown for the fourth consecutive month in April. Japanese markets ended the week down 0.4%, with warnings of potential exchange rate intervention adding to investor concerns. These fluctuations illustrate the nuanced challenges and opportunities present across global markets, as economic data and geopolitical factors continue to shape investor sentiment. Despite uncertainties, there remain pockets of resilience and potential for growth, underscoring the importance of a diversified and adaptable investment strategy in navigating today’s complex financial landscape.
Published 28/5/2024
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund and Raiz Property Fund are issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815).
Raiz Invest Super is a Division of AMG Super and is issued by Equity Trustees Superannuation Limited (AFSL 229757, RSE Licence No L0001458) as Trustee of AMG Super.
The information is general information only and does not take into account of your personal financial situation, goals or needs. You should obtain financial advice tailored to your circumstances by a licensed financial adviser.
A Product Disclosure Statement (PDS) and Target Market Determination (TMD) for Raiz Invest Australia Fund, Raiz Invest Super and Raiz Property Fund (together, the Products) are available on the Raiz Invest website and App. Please read and consider the PDS and TMD to understand the risks and determine if the Products are suitable for you. The risks and fees are fully set out in the PDS and include the risks that would ordinarily apply to investing.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in the Products.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified.
Any opinions or information expressed are subject to change without notice.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
