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  • Peer Wealth

Equity investors dislike Fed minutes


  • Local and global equity markets were flat to weak this week as investors read-through of the Fed minutes increased concerns of no rate relief this year. 

  • In local stock news, Anglo American agreed to enter talks with BHP Group after rejecting a third buyout proposal worth about $74 billion. The latest bid from BHP, which they’ve called their final, requires Anglo to spin off majority stakes in South African platinum and iron ore companies. 

  • James Hardie Industries shares fell sharply to a six-month low after the building materials company announced fourth-quarter earnings of US$232.5 million, coming in below expectations. The company also forecast lower sales in the next financial year.

  • Telstra shares fell whilst the company announced plans to cut 2,800 jobs as part of cost-cutting measures to its enterprise business division aimed at addressing some structural issues. 

  • Bendigo Bank shares rose strongly following a strong trading update for the regional bank, which came in ahead of expectations. Cash earnings for the first ten months were $464 million, circa 10% above consensus whilst their net interest margin also came in above expectations. 

  • Star Entertainment Group shares surged after the under-siege casino operator confirmed it had received multiple tentative takeover offers

  • Michaell Hill International shares sank to a more than three-year low after the jewellery chain said sales for its core brand were still negative relative to last year. 

  • Coal miner New Hope Corp rallied on a strong third quarter production update which came in better than expected. Production was up 21% in the quarter whilst costs tracked lower. 

  • Car dealer AP Eagers Automotive shares fell sharply on a downgrade to earnings at their AGM saying consumers were feeling the pressure. The company expects profit before tax to fall 15% in the half. 

  • The Aussie dollar weakened slightly on US dollar strength as the US Fed minutes took a hawkish tone on rates. 


  • The RBA board minutes confirmed that both a rate hike and no change were discussed, with the board reluctant to “fine tune” policy. The comments appear to indicate that the hurdle for a further rate hike is quite high. 

  • The Westpac Consumer Confidence Index showed that sentiment dipped further last month, with renewed cost-of-living pressures and inflation concerns offsetting a reasonably well-received federal budget. The sentiment reading remains deeply pessimistic. 

  • US existing home sales fell 1.9% in April to a 4.14 million annualised rate, coming in below expectations. New home sales slid 4.7% to a 634,000 annualised rate, coming in below expectations. 

  • A key US data point which measures activity in the manufacturing and services sectors rose in May to its highest level in more than two years

  • A final reading of Eurozone inflation confirmed a previous report that showed prices increased 2.4% on an annual basis in April, in line with expectations. The European central bank president said she is confident that inflation is under control. 

  • UK inflation eased less than expected, dashing hopes of a June interest rate cut by the Bank of England. Prices rose 2.3% in April, slowing from a 3.2% increase in March. 

  • The Reserve Bank of NZ left interest rates unchanged at 5.5% but unexpectedly said that it had considered a rate hike whilst pushing back on the timing of rate cuts from the second to the third quarter of next year. Good lesson for the RBA on talking tough. 


  • Chinese officials eased mortgage rules and urged local governments to buy excess housing to revive the ongoing property crisis as it continues to drag on the country’s economic growth. 

  • British Prime Minister Rishi Sunak has called for an earlier-than-expected UK general election on July 4 in a major gamble considering his party currently trail the Labour Party in polling. 

  • Both the Iranian President and foreign minister died in a helicopter crash on the way back from visiting the country’s northwest. President Raisi had been seen as a favourite to eventually succeed Supreme Leader Ayatollah Ali Khamenei. 

  • Australia is seeking to expand ties with India by sending business representatives for industries like agrifood, education, technology, energy, and resources, according to Australia’s trade minister. 

  • The defence rested in the first of four felony trials former US President Donald Trump faces, without Trump taking the stand. Closing arguments are set to begin next week. 

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