AUS
NZ
UK
CA
USA
IND
Highlights
- ASX200 Performance: The ASX200 fell 2.76% last week, led by a sharp 4.83% decline in the Materials sector. Industrials and Utilities outperformed.
- Global Markets: US indices dropped amid Federal Reserve rate cut concerns, while Europe’s STOXX 600 posted its worst weekly performance since September.
- Small Caps: The S&P/ASX Small Ordinaries fell 3.02% for the week, with limited activity in small-cap stocks.
ASX Weekly Review
The ASX200 dropped 229 points or 2.76% last week to close at 8,067, reflecting a bearish market tone ahead of the Christmas shutdown. The Federal Reserve's hawkish stance on rate cuts spooked equity markets during a period of low liquidity.
The Materials sector led the losses with a decline of 4.83%, followed by Consumer Discretionary (-3.44%), Financials (-3.36%), and Energy (-2.25%). In contrast, Industrials and Utilities recorded modest gains of 0.69% and 0.50%, respectively. Consumer Staples (-1.0%) and Health Care (-1.01%) fared better than most sectors.
Notable Stock Movements
Several stocks posted double-digit losses last week, including:
- Silex Systems Ltd (ASX:SLX): -17.42%
- Appen Ltd (ASX:APX): -16.34%
- Deep Yellow Ltd (ASX:DYL): -16.02%
- Bannerman Energy Ltd (ASX:BMN): -11.96%
Meanwhile, a few stocks bucked the trend with strong gains:
- Cettire Ltd (ASX:CTT): +19.64%
- Novonix Ltd (ASX:NVX): +6.61%
- PointsBet Holdings Ltd (ASX:PBH): +6.25%
- Kogan.com Ltd (ASX:KGN): +5.64%
Global Market Insights
United States
US markets rebounded on Friday due to cooler inflation data but ended the week lower. The Nasdaq dropped 2.25%, the S&P 500 fell 1.99%, and the Dow Jones declined 987 points (-2.25%).
Key inflation metrics indicated a favorable trend:
- Core PCE Inflation: Rose 0.1% month-on-month in November, down from October's 0.3%.
Despite these developments, Federal Reserve officials emphasized caution. Comments from San Francisco Fed President Mary Daly and Cleveland Fed President Hammack reflected divided views on the rate outlook.
Europe
Europe’s STOXX 600 posted its second consecutive weekly decline, dragged down by disappointing trial results from Novo Nordisk's obesity drug. Novo Nordisk's shares fell 20.8%, erasing approximately $125 billion in market value.
Real estate was a rare outperformer, gaining 1.4%, while the broader healthcare sub-index declined 4%. The FTSE 100 experienced a modest drop of 0.3%, underpinned by weaker-than-expected retail sales data.
Currencies and Commodities
Currencies
- The US dollar softened but remained on track for its third consecutive weekly gain.
- Dollar Index: -0.59% to 107.79
- Euro: +0.64%, trading at $1.0428
- Japanese Yen: +0.69%, reaching 156.35
Commodities
- Oil: US crude rose 0.12% to $69.46 per barrel; Brent crude gained 0.08% to $72.94 per barrel.
- Gold: Spot gold climbed 1.11% to $2,622.62 per ounce, driven by easing inflation concerns.
Small Cap News
The S&P/ASX Small Ordinaries declined 0.91% on Friday and lost 3.02% for the week. Activity in small-cap stocks was limited:
- Cyprium Metals Ltd (ASX:CYM): Received FIRB approval for Tranche 2 of its capital raising, targeting an additional A$8.3 million.
- Prescient Therapeutics Ltd (ASX:PTX): Secured FDA clearance for a Phase 2 trial of PTX-100, a first-in-class cancer therapy with Orphan Drug Designation.
Outlook
With a light economic calendar this week, key focus areas include minutes from the RBA’s December meeting and US data releases such as Consumer Confidence and Durable Goods Orders. In the rates market, the outlook for 2025 Fed rate cuts remains uncertain, with expectations rebounding to 44 basis points after Thursday's hawkish shift.
