Strong start to the year, EarlyPay, Chinese AI firm DeepSeek
The ASX market is off to a hot start in January 2025 with a range of themes we noted at the end of 2024 being realised. We remain excited about how the market is set up for calendar 2025; for the first time since 2019, we can see large and straightforward sector dispersion.
This week’s Investment Matters will touch on relevant news items related to the portfolio and macroeconomic conditions.
We also touch on news surrounding Chinese AI firm DeepSeek, and its impact on global markets.
The rotation begins
Firstly, for the past nine months global flows into Australian investments from Chinese investments have contributed to the rising share prices of Australian non-mining large capitalisation companies (especially the banks). This is because global managers wanted to avoid a weakening Chinese economy.
Most obviously, this led to CBA becoming the most expensive bank in the world.Although foreshadowed by others and market reaction earlier in the week, the decision to reduce rates for the first time since Covid-19 will have a significant impact on Australia in due course.
Plus, this week, Craig discusses some interesting new research on Newmont mining and results from Emeco and Catalyst Metals.
What interest rate cuts in the US might mean for Australia
The biggest economic news of the week was not in Australia. In the spirit of the hype associated with interest rate decisions of the GFC and those surrounding Covid 19, commentary by Federal Reserve Chair Jay Powell was once again vital to market sentiment and the future direction of economics around the globe.
Although foreshadowed by others and market reaction earlier in the week, the decision to reduce rates for the first time since Covid-19 will have a significant impact on Australia in due course.
Plus, this week, Craig discusses some interesting new research on Newmont mining and results from Emeco and Catalyst Metals.