The Morning Report

Monday 17/01/2022

GLOBAL MARKET WRAP

The S&P 500 rose 4pts on Friday to close 0.1% higher at 4,663, ending the week in the red for the second straight week. The Energy sector was the strongest performer (+2.5%). The US 10-year treasury yield rose 8bps to 1.78%, while the USD Index rose 0.4% to 95.17 this morning.

US: Retail sales unexpectedly fell in December, losing 1.9%, the largest fall since February 2021 and ending four straight months of strong sales growth. The preliminary reading for the Michigan Consumer Sentiment index came in at 68.8 in January, below the expected 70.0 and down from 70.6 in December.

China: The trade surplus widened to an all-time high of US$94.46 billion in December, well ahead of the expected rise to US$74.5 billion and US$71.7 billion in November.

UK: GDP increased 0.9% in November, ahead of the 0.4% rise expected, with the yearly rate improving from 5.1% to 8.0%.

LOCAL MARKET WRAP

The ASX 200 fell 81pts on Friday to close 1.1% lower at 7,394, with the Information Technology sector the weakest performer (-3.9%). The SPI Futures Index is trading 28pts higher this morning at 7,330. The 10-year treasury yield fell 1bp to 1.85% and the AUDUSD fell 1.0% to 0.7208 this morning.

Pendal Group Limited (PDL) announced on Friday, Funds under Management (FUM) for the quarter ending December 2021 of A$135.7 billion, a decrease of A$3.5 billion on September 2021 FUM. The decrease was driven by net outflows of A$6.8 billion, primarily by two sizeable UK institutional redemptions in the Global Opportunities strategy totalling A$5.1 billion. Positive investment performance and market moves helped offset the outflows by A$3.8 billion, whilst negative currency effects accounted for a A$0.5 billion fall in FUM for the quarter. JOHCM performance fees of ~A$43.4 million were realised for the 12-month period to 31 December 2021, an improvement of A$2.2 million on the pcp. PDL shares fell 15.8% to close at $5.00.

ASX 200 TOP MOVERS

Company Name	Close Price	Change (%)
ResMed Inc (RMD)	$34.79	3.6
Ramelius Resources Ltd (RMS)	$1.51	3.4
AGL Energy Ltd (AGL)	$7.47	2.8
Alumina Ltd (AWC)	$2.05	2.5
Independence Group NL (IGO)	$12.72	2.2

ASX 200 BOTTOM MOVERS

Company Name	Close Price	Change (%)
Pendal Group Ltd (PDL)	$5.00	-15.8
Afterpay Touch Group Ltd (APT)	$69.03	-9.2
Zip Co Ltd (Z1P)	$3.70	-5.1
Whitehaven Coal Ltd (WHC)	$2.80	-5.1
Xero Ltd (XRO) (XRO)	$119.11	-5.0

ECONOMIC DIARY

Country	Event	Date	AEST
China	Industrial Production	17/01/2022	13:00
China	Fixed Asset Investment (Ex Rural)	17/01/2022	13:00
China	GDP	17/01/2022	13:00
China	Retail Sales	17/01/2022	13:00
Japan	BOJ Policy Rate Decision	18/01/2022	00:00
Australia	ANZ/Roy Morgan Consumer Confidence	18/01/2022	09:30
Japan	Industrial Production	18/01/2022	15:30
United Kingdom	Labour Market Report	18/01/2022	18:00
Germany	ZEW Survey	18/01/2022	21:00

Name	CODE	EVENT	Lonsec Recommendation	CLOSING DATE
Corporate Travel Management Ltd	CTD	Share purchase plan	See CA Journal	20/01/2022
CSL Ltd	CSL	Share Purchase Plan	See CA Journal	07/02/2022
Westpac Banking Corp	WBC	Buy Back	n/a	11/02/2022

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