The S&P/ASX 200 (ASX: XJO) clawed back most of Wednesday’s losses, adding 1.3% on Thursday as the risk-on environment returned.
The rally was powered ahead by the tech sector, 4.3% higher, along with property trusts, up 2.6%, and consumer discretionary stocks, up 1.7%.
Qantas’ road to recovery
It was Qantas Airways Limited (ASX: QAN) which drove the latter, CEO Alan Joyce announcing that the company would be cash flow breakeven in the second half of 2021, with net debt having peaked at $6.4 billion.
Earnings are expected to be between $400 and $450 million in the second half of the year, but with a full-year loss of $2 billion.
Management noted that domestic travel had doubled in the second half, but it has been difficult to overcome the loss of $16 billion in revenue over the year. Qantas shares moved 3.5% higher on the news.
Mixed unemployment result
Economists missed the boat once again, with the unemployment rate falling to 5.5% in April.
Most predicted a flat result, yet the economy actually lost 30,000 jobs with fewer people seeking work, sending the participation rate lower.
Not quite the incredible jobs market the headlines are shouting.
BNPL shares rally
Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) finished 7% and 5% higher, respectively, after brokers reiterated their price targets for the former and investors continue to discount any regulatory risk.
CBA nears record
Commonwealth Bank of Australia (ASX: CBA) jumped 3.2%, another record, as it nears $100 per share for the first time; this despite the prevalence of a pandemic in the rest of the world.
Praemium CEO quits
The CEO of wrap platform Praemium Ltd (ASX: PPS) unexpectedly quit, however, shares fell just 0.6%. The decision comes after the group’s successful acquisition and integration of Powerwrap.
Ampol going green
Shares in Ampol Ltd (ASX: ALD) added 0.5% after it became the latest energy company to make a deal with Telsa (NASDAQ: TSLA) to build virtual power plants and green hydrogen storage at the refining sites.
Victorian budget 2021
The Victorian budget has thus far been derided by economics, politicians and financial commentators.
It included a land tax increase, stamp duty rise, windfall gains tax on property rezoning and more recently, an increase in payroll tax to some 9,000 businesses.
A much needed mental health package was the major announcement whilst key infrastructure projects are increasingly over budget.
ASX 200 today
The ASX 200 is set to push higher when the market opens on Friday following a positive lead from US markets overnight. To learn more, check out Rask Media’s US stock market report.