Global markets rallied in November (MSCI ACWI +2.7%) led by the technology-laden U.S. NASDAQ (+4.5%) and followed by the Russell 2000 (+4.0%), outperforming their fellow S&P 500 (+3.4%). Trump’s non-committal to a tariff roll-back saw emerging markets (MSCI EM +0.5%) and Asian hubs (Hang Seng -2.1%, China CSI 300 -1.5%, Korea KOSPI +0.2%) lag over the period. The FTSE benefitted from the market taking a less negative view on the potential impacts of Brexit (UK FTSE +1.5%) while Europe maintained its strength seen in October (MSCI EU ex-UK +2.5%).

Domestically, The S&P/ASX 200 Accumulation Index was up 3.28% during the period. Information Technology was the best performer (+10.9%) in a broader global technology rally. Health Care again remained in the top two performing sectors (+8.9%) with CSL (CSL) and Cochlear (COH) both key contributors to the rise as demand continued for their respective products. Financials was the worst performer (-3.5%) following weak operating trends, an expectation of more capital raisings and AUSTRAC beginning civil proceedings against Westpac Banking Corporation (WBC). Utilities was also down (-0.9%) following investor concerns around APA Group’s (APA) US strategy and moderation over Ausnet Services’s (AST) half-yearly result.

Disclaimer

This document has been prepared by DNR Capital Pty Ltd, AFS Representative – 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. The general information in this document has been prepared without reference to any recipient’s objectives, financial situation or needs. Before making any financial investment decisions we recommend recipients obtain legal and taxation advice appropriate to their particular needs. Investment in a DNR Capital managed account can only be made on completion of all the required documentation.

Source: Motor Trader E-Magazine (Dec 2019/Jan 2020)

18 Dec 2019