Australian PMI Expansion Continues, Stock Market Poised for Weekly Gains 

In April 2024, the Judo Bank Australia Composite Output Index dropped marginally to 53 from 53.3 the previous month, as per the final figures. Despite a slight deceleration, the private sector in Australia continued to expand robustly. The increase in business activities was mainly confined to the services industry while manufacturing production kept falling. This pattern was evident in the volume of new orders too.  

The overall increase in output and new orders led to higher employment levels in April. Input costs soared at the fastest rate as inflation intensified across both the manufacturing and service sectors. However, overall output price inflation eased. Sentiment in Australia’s private sector remained positive but slightly declined since March. The reduction in service sector optimism offset an improvement in confidence in the goods-producing sector. 

(Australia Judo Bank Composite PMI，S&P Global) 

On Friday, the S&P/ASX 200 Index climbed 0.5% to surpass 7,600, marking its second consecutive day of increases, following suit with the overnight upswing on Wall Street after the US Federal Reserve dispelled concerns of another interest rate jump. 

In local markets, participants will evaluate data on Australian housing loans to determine the real estate market’s robustness. Additionally, investors are anticipating the Reserve Bank of Australia’s policy meeting scheduled for next week, which could provide additional insight into the future direction of domestic interest rates.  

Prominent index constituents such as Pilbara Minerals (up 2%), Wesfarmers (up 1.1%), and South32 (up 1.3%) posted significant advances. In business updates, shares of Block Inc. soared 9.7% following its parent company Square’s upgrade of its profit forecast. On the flip side, Macquarie Group’s shares declined 1.6% in response to a 32% decrease in its yearly earnings, with weaker commodity prices impacting its commodities trading arm and a reduction in income from the sale of green energy assets. 

(ASX 200 Index Six-month Chart) 

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