Hi, I’m Bryce Anderson, Senior Portfolio Manager at Morningstar Investment Management. Welcome to the Market Minute where we discuss what has been happening across economies, markets and what that means for opportunities and portfolios.

Starting with the economy, Australia’s latest inflation figures came in a little hotter than expected, suggesting the Reserve Bank will keep rates on hold at their next meeting. In contrast, the US Federal Reserve delivered a widely anticipated rate cut, aiming to support growth as inflation continues to ease and labour market conditions show signs of softening.

In sharemarkets, Korea has been a standout outperforming on the back of strong semiconductor exports and renewed optimism in the technology sector and their role in enabling AI.

In the US, quarterly results from several of the “Magnificent Seven” have been in focus. Alphabet (NAS:GOOGL) reported solid earnings and steady guidance and markets have responded positively. The markets reaction to the announcements from Microsoft (NAS:MSFT) and Meta (NAS:META) weren’t so kind. Meta in particular was down after the market was underwhelmed by their earnings hurt by a one-off tax charge.

Back in Australia, a few large-cap names have been under pressure. CSL (ASX:CSL) fell following updates to the company guidance at their AGM. The downgrade was mainly driven by a drop in U.S. flu-vaccination rates, particularly impacting its vaccines business, and weaker demand in some other geographies. They have also postponed their planned spinoff of the Seqirus vaccine division.

Meanwhile, WiseTech (ASX:WTC) shares dropped sharply amid continued governance concerns after a police raid on its offices, reportedly related to an ongoing investigation. While details remain limited, the event has added uncertainty and weighed on investor confidence.

While all I have mentioned hits the headlines and dominates moves in the short term, portfolios are positioned for opportunities we see delivering over the long term. At the moment, areas we like are Emerging Market equities, Global pharma stocks and tariff impacted consumer stocks.

That’s all for this week’s Market Minute. See you next time.