The economy is in a front-row seat to participate in a regional industrial recovery and retail sales indicate that consumers will party like it’s 2020 this Christmas.

But the star of the day was Nuix. The company’s software helps organisations identify patterns and trends from different formats of data, including unstructured data generated by social media and other types of text, which does not fit into a database table.
It has more than 1000 customers in industries such as financial services, oil and gas and government.
Top-tier data over the past week has provided all the evidence that the economy commands a front-row seat to participate in an Asian industrial recovery, turbo-charging the price of our top export, iron ore.
“The moves in mining stocks we are seeing this week could easily be the start of a multi-decade bull market for Australian mining stocks,” said Regal Funds Management’s chief investment officer, Phil King. “We are seeing the largest global fiscal stimulus since World War II.”
It was “a very exciting time to be invested in Australian mining stocks,” said Mr King, Australia’s best-known hedge fund manager.
On Monday, China’s November factory output beat expectations at the highest margin since September 2017 (52.1 points versus consensus of 51.5, with the highest levels year-to-date for production and new orders).
South Korea’s November trade data on Tuesday showed its semiconductor exports increased by 16.4 per cent year-on-year. And on Wednesday, Australia formally bounced out of recession after the economy expanded 3.3 per cent in the September quarter, the strongest pace since March 1976.
Finally, on the same day that iron ore traded in the spot market reclaimed 2013 levels at more than $US136 a tonne, Australia’s goods exports to China hit a four-month high of $12.7 billion for October.
London copper prices were at a 7½-year high this week, reaching $US7688.15 a tonne.
The S&P/ASX 200 Index closed at 6,634.1 up 0.28 per cent on Friday, sealing its fifth straight week of gains, with records for Fortescue Metals Group and other names inviting sharp interest, including iron ore junior Fenix Resources at a nine-year high, Chalice Gold Mines at a record, and Iluka spin-off Deterra Royalties at its highest since October, when it started trading as a standalone company.
Philip King: “The old saying is that governments can print money but they can’t print gold.” Sam Mooy
In a Regal presentation to investors on Friday, Mr King said Chalice was one of the two largest discoveries in Australia over the past decade, the other being De Grey Mining.
As for stocks, with low interest rates and good profit growth, “we’re very positive on the outlook for markets”, Mr King said, with the caveat that the hedge fund was highly selective about which IPOs it participates in.
The December quarter will be defined by relative outperformance for Asia rather than a unified global recovery.
IHS Markit’s composite PMI on Thursday showed eurozone business activity contracted sharply last month and the services component sank to 41.7 from 46.9.
The coronavirus is still constricting business activity in Europe and the US, irrespective of the positive vaccine news. When Britain declared it would start inoculating people next week, having approved the Pfizer/BioNTech vaccine, the market response made clear such news was already priced in.
Investors are also painfully mindful of the current dispute with China, where Treasury Wine Estates has been the biggest casualty of provisional tariffs of between 107 per cent and 212 per cent. Reports from China on Friday suggested the tariffs could be applied for longer than expected.
“It’s never great to pick a fight with your largest trade partners,” Mr King told investors. “It certainly feels to me like it could get worse before it gets better. At the moment it’s certainly something we have to watch carefully and just make sure we don’t have too much exposure to China.”
The Trump administration has restricted visas for members of the Chinese Communist Party as of Wednesday.
A falling US dollar is positive for commodity prices and that is exactly how it played out over the past five sessions. Testing US74.5¢, about its highest level since July 2018, the Australian dollar is an obvious beneficiary of higher iron ore prices.
The New Zealand dollar also hit a more than two-year high against the greenback at US71¢, as Fonterra upgraded its farmgate price on Friday to between $NZ6.70 and $NZ7.30 per kilogram of milk solids, from between $NZ6.30 and $NZ7.30.
Friday’s ABS data showed that in October the nominal value of retail trade was $29.5 billion, $1.8 billion higher than in February, according to Citi.
Retail sales rose 1.4 per cent in October from September, in seasonally adjusted terms.
A hyped float from earlier this year, Adore Beauty Group, which is trading below its offer price, upgraded prospectus forecasts for first-half revenue on Tuesday by 7 per cent, citing a better-than-expected Black Friday and “Cyber Weekend” performance.
Privately held Mecca opened the biggest physical beauty store in the southern hemisphere last week in Sydney, spanning 1800 square metres. The site used to be occupied by the failed British apparel group, Topshop.