2025's Hot Start Continues: Tech Soars While Iron Ore Bores

Good Evening,

Welcome to Equity Espresso’s Market Recap.

The Aussie market maintained its strong start to 2025, with Tuesday marking the fourth consecutive positive trading day in January, as the major S&P/ASX 200 index closed 27.7pts. or 0.34% higher, finishing at 8,285.10.

Eight of the 11 major sectors finished the day higher, led by Technology (+1.46%) stocks, which rose after the Nasdaq in the U.S. lifted by 1.24%. NextDC (+2.96%), Life 360 (+3.20%) and Xero (+1.87%) were some of the major movers.

On the negative side were the mining giants extending their sell-off as the Iron Ore price traded below US$100/t. Fortescue (-4.21%) shares were hardest hit, followed by BHP Group (-1.18%) and Rio Tinto (-1.17%).

Gold prices held steady at $2,630/oz on Tuesday, showing resilience despite upward pressure from U.S. Treasury yields, which saw the 30-year rate reach 4.83%, its highest level since November 2023.

Company News

• Insignia Financial (+0.86%) shares traded flat after surging 14% on Monday following a takeover bid from CC Capital Partners at $4.30 per share, representing a 7.5% premium over Bain Capital's December offer of $4.00 per share.

• Opthea (+7.10%) shares rose after announcing the publication of its Phase 1b trial of sozinibercept combination therapy in diabetic macular edema (DME) in the peer-reviewed journal Translational Vision Science & Technology (TVST). The study showed promising safety results and improved vision outcomes, particularly at higher doses.

• Pantoro (+0.52%) has reported positive progress in rehabilitating a decline at its Norseman project in Western Australia, advancing 250 meters and targeting March 2025 for underground drilling.

• Syrah Resources (+2.33%) has secured a waiver from the US International Development Finance Corporation (DFC) for events of default on its US$53 million loan triggered by production interruptions at its Balama Graphite Operation in Mozambique due to civil protests.

Wall Street

The S&P 500 and Nasdaq reached one-week highs on Monday, with the S&P 500 gaining 0.55% and the Nasdaq rising 1.24%, while the Dow Jones (-0.06%) slightly declined. The market's upward movement was driven by strong performance in semiconductor stocks and reports of potentially softer Trump administration tariffs, with Communication Services (+2.13%) and Technology (+1.44%) sectors leading the gains.

FuboTV (+253.8%) shares surged following the announcement of a partnership with Walt Disney to merge their online live TV operations, creating a new venture that will be majority-owned by Disney (70%) and minority-owned by Fubo (30%).

S&P500 Sector Performance

Economic Data

• Australia Building Permits shrank by 3.6% month-on-month to 14,998 units in November 2024, worse than market forecasts of a 1% fall.

• U.K Retail Sales saw a notable increase of 3.1% in December 2024, compared to the previous month’s 3.4% decline.

• Germany’s Annual Inflation rate accelerated for a third consecutive month to 2.6% in December 2024 from 2.2% in November and above market forecasts of 2.4%.

Sponsor

Dub app raises $17M for first regulated copy trading platform

On Dub, you don't pick the stocks you want to invest in. You pick the people you want to copy, with portfolios based on hedge fund managers, investing experts, and even law makers.

When you copy a portfolio on Dub, you execute the same trades as them automatically. Dub’s team hopes this will make investing more transparent and accessible.

Dub is SEC-registered, member FINRA. All deposits are SIPC-insured.

Free Trial, $89 annually (iOS)

Not investment advice. Full disclosures here.

Quick Singles

🌎️ Around The Globe

• Apple has agreed to a $95 million settlement in a class-action lawsuit alleging that Siri recordings were shared with advertisers when users accidentally activated the voice assistant. Users could receive up to $20 per Siri-enabled device, though Apple denies any wrongdoing in the case.

• The Department of Transportation has levied its first-ever airline delay fine, charging JetBlue Airways $2 million for chronic delays and unrealistic scheduling, with half the penalty designated for affected customers.

• Microsoft has announced plans for a $80 billion investment to expand its data centre infrastructure, focusing on AI model training and deploying AI and cloud-based applications.

• President Biden has blocked Nippon Steel's $14.3 billion acquisition of U.S. Steel, citing national security concerns and the importance of maintaining domestic steel production.

• OpenAI's CEO Sam Altman revealed that the company is currently losing money on its $200 per month ChatGPT Pro plan due to higher-than-expected usage. Despite raising over $20 billion and securing $6.5 billion in new funding, OpenAI has not yet turned a profit, partly due to high operating costs like $700,000 daily expenses to support ChatGPT.

Markets

ASX Company Movers

Commodity Prices

Bonds

Forex

Global Health Check

ETF Prices

🔍️ ETF Watch

Want to see how one of your ETFs compares to the rest?

Please reply to this e-mail and tell us an ETF or two you want to be included in the tables below.

Australian Index

Australian Sectors

Global Indices & Sectors

Global Strategy

Property & Infrastructure

Fixed Income

Mixed Assets

Geared

*1-year, 3-year and 5-year returns are calculated as of November 30 2024.

The Last Word

How are we doing?

We always love hearing from our readers and are constantly seeking feedback.

• How are we doing with Equity Espresso?

• Is there anything you’d like to see more of or less of?

• Which aspects of the newsletter do you enjoy the most?

Hit reply and say hello - or leave us feedback in the poll below:

If you enjoyed this newsletter, forward this e-mail to a friend.

If you’re that friend, subscribe here.

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your research before making any investment.