Note from MD: Tech acquisitions fly as Fed expected to pause rates

Wall Street had a decent night in the lead up to the Fed’s interest rate decision, as some more economic data came in largely in line with expectations, spurring hope of the Fed holding its monetary policy again for the time being.

Wall Street had a decent night in the lead up to the Fed’s interest rate decision, as some more economic data came in largely in line with expectations, spurring hope of the Fed holding its monetary policy again for the time being.

The Dow Jones was up 0.4%, while the S&P 500 gained 0.7% and the Nasdaq pushed up 0.5%. The tech index was slightly weighed down by the likes of Nvidia, which dropped 5% after reports emerged that the company may lose around US$5 billion dollars of orders due to new US restrictions on Chinese companies.

Home grown tech giant Atlassian (NASDAQ: TEAM) has made another local acquisition in Melbourne based software developer AirTrack, which is expected to form a crucial part of their strategy to launch a whole suit of AI-based developments in their offering. They recently paid around $1.5 billion for Aussie video collaboration platform Loom which was the biggest acquisition in Atlassian’s history.

In the resources sector, BlackRock, the world’s largest asset manager, issued a dire warning that the green energy transition may be at risk if mining companies fail to make the discoveries necessary to feed the world’s demand for critical minerals. The investment giant highlighted that the underinvestment in the sector has created attractive valuations across the spectrum, from copper to rare earths minerals.

The VIX pulled back more than 8%, as the market cuts bets for upcoming volatility in the wake of what is expected to be a Fed pause tonight.

Gold had an very slight pull back but is still keeping very close to the key US$2,000/oz level, trading around US$1,980/oz as it looks to break a triple top formation.

US 10-year yields were at 4.91%, while Australia’s 10-years were at 4.92%. Oil and iron ore were largely flat.

The XJO was largely flat this week and is today trading around just above 6,800. It is still well above both its 52 week low of 6,751, and has so far today managed to hold above its 13 week low of 6,751. Having said this, the index still sits noticeably lower than both its 200 day weighted moving average of 7,163 and its 50 day weighted moving average of 7,002, while being far off its 52 week high of just over 7,567.

Prescient Therapeutics (ASX: PTX) has a diversified portfolio of cancer therapies comprising more mature clinical-stage assets with a lower risk profile and a shorter potential path to market. The company will be holding a fireside chat with Q&A on Wednesday 8th November at 12pm AEDT, to discuss their advancements and what’s next for their portfolio of assets developed with world-leading partners including Yale, UPenn, Oxford, Moffitt & Peter MacCallum. Click here to book in or request the replay.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Prescient Therapeutics Limited and may receive fees for its services.

You should only act on the information we provide if you are confident that you fully understand what you are doing. Past returns do not always indicate future returns, and it is also possible to make significant losses. There is always a risk of loss when investing.

 

This Week’s News

News

8 May 2024

BHP Xplor winner coming to the ASX

News

16 April 2024

Gold at record highs – so why aren’t gold stocks?

News

22 November 2023

Rare Earths Industry Review: Part 2

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.