15 December 2025 | Weekly Snapshot

Saward Dawson > Wealth Advisory Insights > Weekly Snapshot > 15 December 2025

Did you know?

China installed almost 300,000 industrial robots in 2024.

This is almost 10x more than any other country and underscores why they have a low cost, competitive advantage across many manufacturing industries. This is no longer just a ‘low wage’ point of difference. The rest of the world will have to invest heavily in this capability if they are going to ever catch up. This will take time, capital and potentially add to the inflationary narrative in the short term.

Market Movements

The Australian market was higher by 0.6% last week led by resources (up 3.1%) and financials (up 1.7%). Resource strength was quite broad across lithium companies (Liontown up 12%), uranium (Paladin up 11.4%) with physical gold up 3.1% and copper up 1.5%. Driving theses moves is, potentially, a market re-positioning for lower interest rates and higher inflation in the USA, which is more supportive for asset-backed equities, including resources.

In the USA, the S&P500 index was lower by 0.6% and the tech-heavy index (Nasdaq) was lower by 1.6%. Dell and Oracle were among the tech names that got sold off (down 6% and 13% respectively). In some ways, growth stocks, such as the tech index, is less of a beneficiary for higher inflation where this is accompanied by higher bond yields at longer maturities. The maths here is that the higher bond yields will discount future profits more severely, which is why we see the share prices for growth companies fall more heavily.

On a year-to-date basis, China, Japan and the Nasdaq have all seen returns above 20%, whilst Australia and India were single-digits. Gold and copper have risen y 64% and 36% respectively.

The below chart compares the valuation levels (price to earnings ratio or PE) across the following global sectors: Info tech (pink), materials (purple) and the world index (black). We have seen some strong divergence in recent 5 years with info tech valuations going significantly higher. But the more recent trends (noted above) suggest that this gap is narrowing. Materials continue to be significantly undervalued compared to info tech considering so this offers more room to run in this thematic.

Portfolio Movements

Broadcom beats Q4 estimates

Broadcom has reported a solid Q4 result with Q4 EPS $1.95 ex-items ahead of the $1.87 estimate. Q4 revenue of $18.02B was also ahead of the $17.47B expected.
Broadcom is a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions.
“In Q4, record revenue of $18.0 billion grew 28% year-over-year, driven primarily by AI semiconductor revenue increasing 74% year-over-year,” said CEO Hock Tan. Adding “We see the momentum continuing in Q1 and expect AI semiconductor revenue to double year-over-year to $8.2 billion, driven by custom AI accelerators and Ethernet AI switches. We forecast Q1’26 total revenue of $19.1 billion and adjusted EBITDA of 67%.”

BHP to monetise power infrastructure assets

BHP announced it has signed a binding agreement with BlackRock’s Global Infrastructure Partners to sell a stake in their Western Australia Iron Ore’s inland power network.
The WAIO power infrastructure comprises the Yarnima power station and more than 400km of transmission and distribution lines, along with integrated substations and control systems supplying electricity to its Pilbara mining operations and the town of Newman.
Under the terms of the deal, a trust entity will be formed that is 51% owned and controlled by BHP, and GIP will provide $2 billion to BHP for a 49% stake. With BHP paying the entity a tariff linked to the company’s share of WAIO’s inland power over a period of 25 years and retaining full operational control of the project.

ASX posts record November average daily value traded

Market operator ASX Limited posted a very strong November activities report on Friday with total average daily value traded of $8.93B, up 32% year on year and a new record.
Cash market average daily number of trades also surged 54% year on year to 2.6 million daily trades in November which also looks like a new record.
Based on recent activity reports ASX should report a solid first half result in Feb, but investors are likely to take a cautious approach with Release 1 (Cash Market Clearing) of the long-awaited CHESS replacement project also due by June next year.

The Week Ahead

Monday 15 December: China Retail Sales YoY (Nov) 2.9% (prior 2.9%), Industrial Production YoY (Nov) 5.0% (prior 4.9%).
Wednesday 17 December: USA Change in Nonfarm Payrolls (Nov) 50k, Unemployment Rate (Nov) 4.5%, Retail Sales Advance MoM (Oct) 0.1 (prior 0.2%), S&P Global US Manufacturing PMI (Dec P) 52.0 (prior 52.2), S&P Global US Services PMI (Dec P) 54.0 (prior 54.1). United Kingdom CPI Core YoY (Nov) 3.4% (prior 3.4%).
Thursday 18 December: Japan Natl CPI YoY (Nov) 2.9% (prior 3.0%), BOJ Target Rate (Dec) 0.75% (current 0.5%). United Kingdom Bank of England Rate (Dec) 3.75% (current 4.00%)
Friday 19 December: USA Initial Jobless Claims (Dec 13) 225k (prior 236k), CPI YoY (Nov) 3.1% (– No Prior data due to US Government Shut Down –).

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Saward Dawson Wealth Advisors Pty Ltd, a Corporate Authorised Representative of Akambo Pty Ltd t/a Accountants Private Advice

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