AUS
NZ
UK
CA
USA
IND
Highlights
- Market Movements: ASX futures indicate a 0.9% decline; global markets see subdued activity due to New Year closures.
- Top and Bottom Performers: Key ASX gainers include Zip Co (ASX:ZIP) with a 363% surge, while Liontown Resources (ASX:LTR) fell 68%.
- Sector Insights and Outlook: Financials, IT, and Healthcare outperformed; Mining and Consumer Discretionary sectors faced challenges.
Australian shares are set for a softer opening, reflecting a mixed finish to 2024 trading across Europe and modest losses in New York. Market activity is expected to remain quiet as the New Year holidays wind down globally.
In the US, stock futures showed slight declines, while Asian futures were narrowly mixed. Most overseas markets were closed for New Year celebrations. Despite this subdued end, US equities delivered a stellar performance for 2024, with the S&P 500 rising 23.3%, the Nasdaq surging 28.8%, and the Dow gaining 12.9%.
Key Market Metrics
- ASX futures: Down 77 points or 0.9% (as of December 31)
- AUD: Up 0.1% to 61.93 US cents
- Bitcoin: Gained 0.2% to $US94,143
- Gold: Rose 0.7% to $US2624.50/oz
- Brent crude: Up 0.9% to $US74.64/barrel
- Iron ore: Flat at $US100.97/tonne
- 10-year yields: US 4.57%, Australia 4.36%, Germany 2.36%
2024 Performance Review
Top Performers
- Zip Co (ASX:ZIP): Surged 363%, recovering to early 2022 levels after a strategic pivot toward profitable growth.
- Life360 (ASX:360): Up 198%, buoyed by strong financials and a successful Nasdaq listing.
- Sigma Healthcare (ASX:SIG): Gained 162% following its merger with Chemist Warehouse Group.
- Pro Medicus (ASX:PME): Increased 161% due to global adoption of its imaging software.
Bottom Performers
- Liontown Resources (ASX:LTR): Dropped 68%, hurt by falling lithium prices and a failed acquisition bid.
- The Star Entertainment Group (ASX:SGR): Fell 63%, weighed down by regulatory challenges.
- Coronado Global Resources (ASX:CRN): Declined 56%, affected by operational delays and adverse weather.
- Audinate Group (ASX:AD8): Lost 54%, as a shift to software impacted margins despite strong sales.
Sector Insights
Healthcare and IT led the pack in 2024, with standout performances from companies like Telix Pharmaceuticals and Technology One. In contrast, the mining sector faced headwinds, with mixed outcomes for major players like BHP and Rio Tinto.
Economic Outlook
The Federal Reserve has eight policy meetings scheduled for 2025, with projections indicating a potential easing of interest rates. While economic growth is expected to slow in early 2025, signs of reacceleration by 2026 could prompt a reconsideration of rate policies.
This evolving landscape highlights the interplay between economic signals and market expectations as a new year unfolds.
