The Overnight Report: Anxiety Rising

This story features PLATINUM ASSET MANAGEMENT LIMITED, and other companies. For more info SHARE ANALYSIS: PTM

SPI futures are suggesting another cautious, slightly weaker opening for the ASX today.

Good morning.

That sound you are not hearing is anxiety creeping into global investors’ minds.

Elon Musk and US bond traders are not singing from the same song sheet. The Ukraine has reportedly agreed to the US administration’s proposal without guaranteed US protection.

US economic indicators are weakening. Disapproval is rising among US voters previously voting for change’.

US Treasuries had a fifth consecutive winning session overnight that saw prices move higher and yields lower.

US equities had a soft session in response following a third monthly decline in Conference Board consumer confidence and a lift in inflation expectations.

In Europe, the Euro Stoxx 50 closed down -0.1% and the FTSE100 gained 0.1%

The UK announced its intention to raise defence spending to 2.5% of GDP by 2027.

As explained by ANZ Bank economists this morning, US data suggest stagflation might become the next worry for investors.

“Growth concerns dominate the near-term outlook. The Conference Board consumer survey data follows the weak services PMI and a fall in University of Michigan consumer sentiment last week, and underscore rising concerns about weak growth coupled with a surge in inflation expectations.

“Inflation expectations are a closely watched metric at the Fed and a de-anchoring of inflation expectations for an extended period would risk undoing the progress on disinflation.”

Locally, the February results season is generating more ‘beats’ and ‘meets’ than ‘misses’ but there are plenty of proverbial car crashes around.

Platinum Asset Management ((PTM)) already revealed this morning it has not been able to stop the rot (i.e. fund outflows) with funds under management now at $11bn (January) from $16.2bn in December 2023.

Management says it remains on target to cut -$25m of costs from the business.

Also, Japanese company MIXI Inc has agreed to buy PointsBet ((PBT)) for a price of $1.06 per share – representing a premium of 27.7% to PointsBet’s most recent closing price.

On the local results calendar today we have Life360 ((360)), Bapcor ((BAP)), Harvey Norman ((HVN)), Integral Diagnostics ((IDX)), Tyro Payments ((TYR)), Worley ((WOR)) and WiseTech Global ((WTC)) among numerous others.

https://fnarena.com/index.php/financial-news/calendar/

On the calendar today:

-Australia Jan CPI

-US Jan Build permits

-US Jan new home sales

-Life360 ((360)) 4Q 2024 results

-Airtasker ((ART)) earnings report

-Attura ((ATA)) earnings report

Bapcor ((BAP)) earnings report

-Bendigo & Adelaide Bank ((BEN)) ex-div 30c (100%)

-Boss Energy ((BOE)) earnings report

-Downer EDI ((DOW)) ex-div 10.80c (75%)

-Emerald Resources ((EMR) earnings report

-Flight Centre ((FLT)) earnings report

(and more)

FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/

Corporate news in Australia:

-HMC Capital ((HMC)) hires Macquarie ((MQG)) for Healthscope takeover bid

-Dalrymple Bay Infrastructure ((DBI)) eyes acquisitions, with BHP Group’s ((BHP)) Hay Point Coal Terminal and Port of Newcastle as possible targets

The Australian share market over the past thirty days

For more detail go to FNArena’s Australian Broker Call Report, which is updated each morning, Mon-Fri.

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