Energy stocks disconnect gets âcrazyâ
Jul 4, 2021 â 4.00pm
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The share prices of Australiaâs major oil and gas producers remain stubbornly subdued despite bullish commodity prices, leading to concerns that the sector is being unreasonably discounted on ESG grounds that have rocketed up the agenda for investors since the onset of COVID-19.
Despite Brent oil prices now back above $US76 a barrel and LNG spot prices in Asia at the highest for this time of year since 2013, the market values of companies such as Woodside Petroleum and Oil Search remain well below pre-pandemic levels, in contrast to many European and US peers.
A watershed week underscoring climate risks for oil and gas multinationals has heightened doubts around multi-billion dollar new projects and the investments needed to underpin a gas-fired recovery.
4 ASX shares every investor should consider adding to their portfolio: fundie
4 ASX shares every investor should consider adding to their portfolio: fundie
Ask a fund manager Part 2: Katana Asset Management’s Romano Sala Tenna tips 4 shares every ASX investor should consider.
Bernd Struben earned his economics degree in the US. Following several years writing about the tourism industry in the Caribbean, he moved to The Netherlands to cover the EU s booming commercial real estate markets. He moved to Australia in 2010, where he transitioned to analysing the Aussie equity markets. He employs a combination of macro economics and company specific data to gauge what he believes are tomorrow s best investments. In his free time, you re likely to find Bernd at the beach or dabbling away on a new work of science fiction.
10 key investment criteria every ASX investor should know: fundie
10 key investment criteria every ASX investor should know: fundie
Ask a fund manager Part 1: Katana Asset Management’s Romano Sala Tenna shares 10 key insights into ASX investing success.
Bernd Struben earned his economics degree in the US. Following several years writing about the tourism industry in the Caribbean, he moved to The Netherlands to cover the EU s booming commercial real estate markets. He moved to Australia in 2010, where he transitioned to analysing the Aussie equity markets. He employs a combination of macro economics and company specific data to gauge what he believes are tomorrow s best investments. In his free time, you re likely to find Bernd at the beach or dabbling away on a new work of science fiction.
US inflation shatters interest rate complacency
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The strongest monthly rise in US core consumer prices in almost 40 years shattered investor complacency over the prospect of ongoing very low interest rates, and rang the bell on valuations in the interest rate sensitive technology sector.
US core consumer prices surged 0.9 per cent in April, the most since 1982, pounding global stockmarkets and reviving bond yields, as investors rapidly brought forward the expected timing of the first post-pandemic US Federal Reserve rate hike.
News of rising US inflation had a savage and immediate effect on global markets.Â
Phil Carrick
âI think it does change things for most people,â said Justin Tyler, founder of Daintree Capital. Ahead of the data, a sense of complacency had crept into the market over inflation, he said, and investors had only expected a little heat in the CPI over the coming months.