ASX below 7000 – Monday and Tuesday saw the ASX fall a whopping 3%, reaching below 7000, its lowest point in 8 months. A mix of rising tension in Ukraine and an inflation shock escalating nerves around interest rates were the major cause of the second biggest sell off of Australia shares this year. The ASX has now fallen 6.5% this year, reaching correction territory on Thursday.
Bitcoin new floor – Global stocks aren’t the only falling asset at the moment. Bitcoins continued fall has forced investors to consider $US30,000 as the new base line. The worlds largest digital asset has continued to break through technical support levels and is not 50% below its November peak.
Interest rates – The US Federal Reserve has signalled that interest rates will begin to rise in March. Main US indices fell following the announcement, with the S&P 500 down almost 1%, closing on Tuesday at its lowest level since October.
Tesla Slump – After a volatile week on global markets, Wall street began to rally on Thursday, but was fizzled out as investors dumped Tesla, which fell 11%, dragging the tech sector with it. The sell off wiped more then $150 billion from its market cap. Tesla is now down more than 25% for the year.
US Economy Expansion – The US economy has expanded almost 7% in the final quarter of 2021. Three times as much as Q3 and well above the forecasts of 5.5%. The growth was driven by private inventory investment, exports and personal consumption. This is the United States strongest economic growth since 1984. US output is not 3% above pre-COVID levels.
Click here to open a POEMS trading account
Disclaimer
This publication has been prepared solely for the information of the particular person to whom it was supplied by Phillip Capital Limited (“PhillipCapital”) AFSL 246827. This publication contains general securities advice. In preparing the advice, PhillipCapital has not taken into account the investment objectives, financial situation and particular needs of any particular person. Before making an investment decision on the basis of this advice, you need to consider, with or without the assistance of a securities adviser, whether the advice in this publication is appropriate in light of your particular investment needs, objectives and financial situation. PhillipCapital and its associates within the meaning of the Corporations Act may hold securities in the companies referred to in this publication. PhillipCapital believes that the advice and information herein is accurate and reliable, but no warranties of accuracy, reliability or completeness are given (except insofar as liability under any structure cannot be excluded). No responsibility for any errors or omissions or any negligence is accepted by PhillipCapital or any of its directors, employees or agents. This publication must not be distributed to retail investors outside of Australia.