Latest news with #TenCap
Sydney Morning Herald
16 hours ago
- Business
- Sydney Morning Herald
Safe haven: ASX outperforms Wall Street amid Trump chaos
The ASX hit record highs last week, for example, and the S&P 500 also fell more sharply during the global sell-off between late February and the April 'Liberation Day' turmoil. 'We've gone to a record high. They haven't,' he said. Nick Twidale, Chief Market Analyst at ATFX Australia, said it had become clear Trump's tariffs were most damaging to the US economy and 'that's why we're seeing some other economies outstripping the US at the moment'. 'Having said that, we all know, especially from an Australian perspective, that a poor US economy is going to drag on us, as is a poor Chinese ... so how long that pattern stays for is up for question.' Ten Cap founder and portfolio manager Jun Bei Liu said some big investors, like pension funds, were investing in the Australian market due to uncertainty in the US. 'A lot of global investors always hold US sharemarket as a big portion of their share portfolios ... sometimes 60, 70 per cent of their portfolios,' said Liu. 'Now with the tariffs, it really has structurally changed how those investors think about their investment portfolio, those large pension funds and the like. There is just way too much risk for them.' 'We are already seeing money going into Europe and Australia has been a huge beneficiary as well.' Opal Capital chief investment officer Omkar Joshi said the differences in composition between the Australian sharemarket and Wall Street an important factor. The technology sector comprises about 30 per cent of Wall Street, whereas the local bourse is dominated by banks and miners, who make up 50 per cent of the ASX 200 by value. Loading And Since China unveiled its DeepSeek technology late last year the AI trade – which has been significant to Wall Street – has begun to 'unwind' Joshi said. It's sent investors towards the safety of the ASX, particularly the banks. 'They're [blue-chip financial stocks] well insulated … from the tariff perspective,' said Joshi. 'When you're looking at it from an institutional [investor] perspective … the Australians banks start to look interesting … if there is earning certainty people are willing to pay up for it.'
The Age
16 hours ago
- Business
- The Age
Safe haven: ASX outperforms Wall Street amid Trump chaos
The ASX hit record highs last week, for example, and the S&P 500 also fell more sharply during the global sell-off between late February and the April 'Liberation Day' turmoil. 'We've gone to a record high. They haven't,' he said. Nick Twidale, Chief Market Analyst at ATFX Australia, said it had become clear Trump's tariffs were most damaging to the US economy and 'that's why we're seeing some other economies outstripping the US at the moment'. 'Having said that, we all know, especially from an Australian perspective, that a poor US economy is going to drag on us, as is a poor Chinese ... so how long that pattern stays for is up for question.' Ten Cap founder and portfolio manager Jun Bei Liu said some big investors, like pension funds, were investing in the Australian market due to uncertainty in the US. 'A lot of global investors always hold US sharemarket as a big portion of their share portfolios ... sometimes 60, 70 per cent of their portfolios,' said Liu. 'Now with the tariffs, it really has structurally changed how those investors think about their investment portfolio, those large pension funds and the like. There is just way too much risk for them.' 'We are already seeing money going into Europe and Australia has been a huge beneficiary as well.' Opal Capital chief investment officer Omkar Joshi said the differences in composition between the Australian sharemarket and Wall Street an important factor. The technology sector comprises about 30 per cent of Wall Street, whereas the local bourse is dominated by banks and miners, who make up 50 per cent of the ASX 200 by value. Loading And Since China unveiled its DeepSeek technology late last year the AI trade – which has been significant to Wall Street – has begun to 'unwind' Joshi said. It's sent investors towards the safety of the ASX, particularly the banks. 'They're [blue-chip financial stocks] well insulated … from the tariff perspective,' said Joshi. 'When you're looking at it from an institutional [investor] perspective … the Australians banks start to look interesting … if there is earning certainty people are willing to pay up for it.'
Sydney Morning Herald
27-04-2025
- Business
- Sydney Morning Herald
Money is flowing out of Wall Street, so where is it going?
Investors who are dumping American stocks following US President Donald Trump's global tariff war are turning to the Australian sharemarket as they seek safe havens around the world amid economic volatility. While the S&P/ASX 200 is down more than 4.5 per cent since Trump's presidential inauguration on January 20, the local bourse has outperformed the major Wall Street indexes since Trump unveiled a wave of tariffs on so-called Liberation Day earlier this month. Fund managers say Australia has benefited from being relatively insulated from the economic instability, despite being slapped with a baseline 10 per cent tariff, and that the local economy is holding up stronger than anticipated. Between April 2 and the ASX's close on April 24, the local bourse has lifted 0.43 per cent. Over the same period on Wall Street, the Dow Jones has fallen 5 per cent, the S&P 500 is down 3.3 per cent and the tech-heavy Nasdaq is trading 2.5 per cent lower. Trump's fast-paced policy changes have unleashed global market chaos over the past month. The Australian index has see-sawed, recording its steepest one-day fall in five years followed by the biggest one-day rise in two years the following day earlier this month. Global markets, however, rose late last week after Trump said his tariffs on China would come down 'substantially' and that he had 'no intention' of firing US Federal Reserve chairman Jerome Powell. Ten Cap co-founder and portfolio manager Jun Bei Liu said the turmoil was causing investors to flee the US. Although the IMF last week downgraded Australia's economic growth forecast for 2025 to 1.6 per cent, down from 2.1 per cent in January, Australia is expected to remain one of the fastest-growing major economies in the developed world this year and next.
The Age
27-04-2025
- Business
- The Age
Money is flowing out of Wall Street, so where is it going?
Investors who are dumping American stocks following US President Donald Trump's global tariff war are turning to the Australian sharemarket as they seek safe havens around the world amid economic volatility. While the S&P/ASX 200 is down more than 4.5 per cent since Trump's presidential inauguration on January 20, the local bourse has outperformed the major Wall Street indexes since Trump unveiled a wave of tariffs on so-called Liberation Day earlier this month. Fund managers say Australia has benefited from being relatively insulated from the economic instability, despite being slapped with a baseline 10 per cent tariff, and that the local economy is holding up stronger than anticipated. Between April 2 and the ASX's close on April 24, the local bourse has lifted 0.43 per cent. Over the same period on Wall Street, the Dow Jones has fallen 5 per cent, the S&P 500 is down 3.3 per cent and the tech-heavy Nasdaq is trading 2.5 per cent lower. Trump's fast-paced policy changes have unleashed global market chaos over the past month. The Australian index has see-sawed, recording its steepest one-day fall in five years followed by the biggest one-day rise in two years the following day earlier this month. Global markets, however, rose late last week after Trump said his tariffs on China would come down 'substantially' and that he had 'no intention' of firing US Federal Reserve chairman Jerome Powell. Ten Cap co-founder and portfolio manager Jun Bei Liu said the turmoil was causing investors to flee the US. Although the IMF last week downgraded Australia's economic growth forecast for 2025 to 1.6 per cent, down from 2.1 per cent in January, Australia is expected to remain one of the fastest-growing major economies in the developed world this year and next.
