The ASX is up 1.61% for the week and 4.99% for the month, although it remains to be seen whether this upward trajectory will continue.
The S&P500 also made notable gains, rising 3.86% for the week, although it still trails the ASX200 at 4.39% for the month.
The Nasdaq was less buoyant, gaining 1.68% for the week, with the FTSE100 (+1.87%) and Nikkei 225 (+1.21%) following suit.
The Hang Seng once again lost out, shedding 7.04% this week. The Hong Kong index is down 12.46% for the month, and a whopping 41.03% for the year.
ASX sectors were mostly in the positive, with only three of eleven falling.
Real Estate (+6.67%) and Utilities (+5.83%) were the biggest gainers this week, with Industrials (+3.93%), Communication Services (+3.06%) and Consumer Discretionary (+2.92%) close behind.
Materials (-0.79%), Energy (-0.41%) and Consumer Staples (-0.35%) fell marginally.
Commodities were a mixed bag, with platinum (+5.62%), West Texas Crude (+4.06%), aluminium (+2.72%), copper (+2.33%) and nickel (+1.93%) gaining, while palladium (-5.82%), lead (-5.69%) and tin (-2.36%) fell as other commodities lifted marginally.
In the news this week
Green equity market more than triples in 12 years, but more is needed
A report from the London Stock Exchange’s research arm, ‘Investing in the Green Economy 2022’ has mixed news on the climate front; while investments in green equities have more than tripled from $2 trillion in 2009 to over $7 trillion in 2021, more is needed to tackle climate change.
Investing in start-ups and growth businesses offering climate related technology is crucial to tackling climate change.
Despite progress, financial and entrepreneurial talent are still the missing key to making positive steps towards climate action, says boutique investment bank, DAI Magister.
“The Economic realities of climate change makes a compelling investment case for entrepreneurs and so the large VC, private equity funds and family office investors are jumping in rapidly,” DAI Magister co-head Marc Deschamps said.
“But despite this, DAI Magister believes there is still a long way to go before climate tech-focused businesses and start-ups can achieve their goals.”
ESG or environmental, social and government initiatives have become increasingly important in securing institutional finance; a COP26 coalition of representatives from private equity, pension funds and banks recently vowed to use the $130 trillion at their disposal to tackle climate change.
COP27, or the 2022 United Nations Climate Change Conference, will take place from November 6 until November 18, in Sharm El-Sheikh, Egypt.
COP27’s Thematic Days will include Decarbonisation Day, Energy Day, Science Day and Finance Day.
“It’s encouraging to see finance taking such a centre stage during COP27 and this may be the catalyst that bolsters more significant investment in climate tech,” Deschamps continued.
“This will be an opportunity for the ESG and clean tech investment community, but also the general private equity funds to have their say, highlight the current obstacles that climate-focused financing is experiencing, and suggest how the finance community can better provide future-focused funding.
“The importance of finance as a tool for change across the climate change agenda was highlighted in Glasgow at COP26, so we’re looking forward to hearing from industry leaders and delegates about the latest financial innovations, tools and policies that will support climate action and the delivery of a greener future.”
Retail traders won’t save Meta from the dip
Meta shares fell steeply yesterday, shedding more than 20% of their value following the release of lukewarm revenue forecasts, although many have also pointed to a lack of faith in the company’s Metaverse plans.
Retail investors were undaunted, quickly snapping up the cheaper shares and driving Meta’s single day trading volumes up by 288% on the trading platform Capital.com.
The number of buy orders (75%) tripled the number of sell orders (25%).
“Traders seem to be buying the dip in Meta— I liken this to catching a falling knife,” Capital.com market specialist Justin Mcqueen said.
“While Meta shares might already have fallen a sizable 70% this year, the outlook remains bearish in the near term.
“The outlook for Q4 remains pretty bleak with the company stating that the impact of a strong US dollar would be a 7% headwind to year-over-year revenue growth.
“Alongside this, Meta’s big bet on the Metaverse has not paid off with their reality labs business having lost over $9 billion this year.
“The Metaverse bubble appears to have well and truly popped.”
Fuel prices push more Aussies toward EVs
Oil and petrol prices have been a concern for many Australians in recent months, and the worry is not likely to abate anytime soon; the federal government’s budget forecasts a drop in oil prices, but the Commonwealth Bank considers this too optimistic.
The CBA’s view is that the current premium on oil – created by Russia’s war on Ukraine – will likely remain until at least 2025/26, and that prices could climb higher in the short-term if Russia cuts supplies into the EU further.
Oil and gas instability has led many Australians to consider a less volatile option; electric vehicles.
New research from Finder.com has revealed 13% of Australians cite expensive petrol prices as the main reason they want to switch to an EV, while 20% (1 in 5) say environmental concerns are their motivation.
That’s not to say all Australians are ready to jump on the EV bandwagon; 26% of respondents said they were too expensive, 7% said charging infrastructure was not yet up to scratch, and a further 14% stated they simply prefer conventional cars.
Finder insurance expert Gary Hunter said ditching petrol is a great way to save on fuel while doing your part for the environment.
“Electric cars are starting to replace conventional cars as we make the inevitable shift towards more sustainable fuel sources,” he said.
“Australia is behind other countries like New Zealand when it comes to EV adoption, but Aussies are slowly getting on board.”
The upfront cost is a major barrier for most, but fuel costs offer attractive savings.
“Many people associate electric cars with Tesla (NASDAQ:TSLA), whose models can set you back well beyond six figures. But there are more affordable models out there, starting from around $45,000 for EVs and $27,000 for hybrids.
“We’ve seen the prices of electric and hybrid cars get lower over the last decade as technology improves, and as demand grows, the costs will continue to drop and more charging stations will continue to pop up.
“In the immediate term, too, your fuel costs will drop. If you’re saving around $50 to $100 a week on fuel, that can help balance out the extra cost of your car repayment.”
Finder also offers some helpful tips on what to think about when buying an electric vehicle:
Range calculations: Take a note of all the journeys you do over a period of time. Write down the distance or you could just use the trip computer in your current car.
Doing some simple maths with these figures will give you a number of kilometres that you need to be able to consistently travel on a typical day in your electric car.
Charging options: Make sure your vehicle is compatible with public charging options near you and comes with a connector compatible with public infrastructure.
The battery: Think of the battery in an electric car like the fuel tank of a traditional vehicle. The electrical energy stored in it is equivalent to the liquid fuel that would be held in the tank.
Exposure to high temperatures, high or low levels of capacity, numerous charging cycles and charging speeds can all cause a deterioration in the battery's state of health.
Small cap wins for the week
C29 metals share price surges 53.33%
C29 Metals Ltd (ASX:C29)’s share price surged 53.33% over the week after entering an option agreement with AIS Resources Ltd to acquire 80% of two highly prospective lithium-bearing salars within Argentina’s Salta Province.
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Cobre soars, shares up 24.66%
Cobre Ltd (ASX:CBE) shares soared after the company unearthed more copper at both the Comet and Nova prospects of the Ngami Copper Project in Botswana.
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Alchemy Resources shares jump 23.07%
Alchemy Resources Ltd (ASX:ALY)’s share price jumped 23.07% after kicking off a lithium-focused reverse circulation (RC) drill program at the 100%-owned Karonie Lithium-Gold Project in WA.
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St George Mining lifts 15.68%
St George Mining Ltd (ASX:SGQ) lifted 15.68% on news the company had begun an lithium-targeted drilling program at the flagship Mt Alexander Project.
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QMines up 15.15%
QMines Ltd (ASX:QML) shares were up 15.15% this week, after intersection high-grade copper and gold mineralisation in several holes at Mt Chalmers in Queensland. The company also recently raised $1.26 million to aid in developing Mt Chalmers.
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