Domestically, the S&P/ASX 200 Accumulation Index was up 4.25% during the period. Consumer Discretionary (+6.9%) was the best performing sector. Improving consumer confidence, coupled with strong household savings and a surging housing market has encouraged the sector. Utilities (+6.8%) also outperformed, as the sell-off in bonds moderated, allowing investors to revisit the outlook for bond proxies, including infrastructure and real estate. Materials (-5.0%) was the worst performing sector as iron ore prices slipped from their highs, prompting a sell off in the majors. Information Technology (-3.0%) also underperformed, with long-duration stocks continuing to be challenged by higher bond rate.

Internationally, markets finished largely higher during the month. Europe (MSCI Europe-ex UK) led markets as the global recovery continued, with vaccine rollouts gaining traction. The story was replicated in the United States, with both major indexes (S&P 500 +4.2%, NASDAQ +0.4%) finishing stronger, anticipating a significant fiscal stimulus package on the horizon. The United Kingdom (FTSE 100 +3.6%) rounded out the major Western markets with their own vaccine drive underway, and the beginnings of an economic plan taking shape post-Brexit. Asian markets were weaker than peers, with Korea (KOSPI +1.9%) outperforming Japan (Nikkei +0.73%). The Chinese (CSI 300 -5.4%) and Hong Kong (Hang Seng -2.1%) markets were the worst performers, as the economic recovery in China slowed.

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 (April 2021)

9 April 2021