Markets wrap: Omnicom outperforms competition, ASX vulnerable to volatility in coming months

Australian shares remain at high risk of further falls in the short term on the back of inflation, interest rate, recession and geopolitical risks. A recent GroupM report estimates Australia’s e-commerce market to grow by 8.4%, while data from AMP finds significantly slowing consumer spending.

Omnicom shares rallied earlier this week, outperforming competitors like Publicis Groupe and IPG.

Sharemarkets are particularly vulnerable in the short term as inflation remains high, global central banks are still hawkish, recession risks are high, geopolitical tensions remain high and the period out to mid-October is known for sharemarket weakness.

Data from AMP reveals Australian consumer spending is slowing significantly towards 2023. While spending is holding up for now (thanks to high accumulated savings, housing pre-payment buffers and the usual lags associated with rate changes and minimum housing repayments), it may slow down to under 1% per annum by the second half of 2023 – well below its more normal levels of around 3%.

AMP forecasts a peak in the cash rate at 2.85%. Australia’s vulnerability to higher interest rates will prevent the RBA from raising the cash rate too far, with less rate hikes required to slow demand compared to global peers.

Research from GroupM this week has estimated Australia’s e-commerce market will grow by 8.4%, below last year’s growth of 24%.

The Australian retail market has continued to see growth nearly double the headline inflation rate, with demand remaining resilient even as consumer confidence falls sharply, according to GroupM’s E-Commerce & Retail Media Forecast 2022. GroupM estimates that global advertising revenue for retail-based companies was $88 billion in 2021 and will reach $101 billion this year. This amounts to 18% of global digital advertising and 11% of total advertising.

Read on for a wrap of the latest movements in media and marketing holding companies.

Omnicom Inc.:

  • Omnicom PR Group has hired Michael Fleischer as CEO of DDC Public Affairs. Fleischer will report to Omnicom Public Relations Group CEO Chris Foster, and started in the role last month.
  • Omnicom Public Relations Group posted a 15.8% organic revenue increase to $392.2 million in Q2.
  • Shares of Omnicom Group Inc. rallied 1.51% to $68.00 Monday, on what proved to be an all-around positive trading session for the stock market. Omnicom Group Inc. closed $23.61 short of its 52-week high ($91.61), which the company reached on February 10th.
  • OMC shares are trading at 65.41 USD today, a drop of −1.89 (2.81%) since markets closed.
  • Shares dropped significantly on Tuesday 20th after Monday’s rally.

Publicis Groupe:


  • Twitter’s tug-of-war with billionaire Elon Musk rages on this week, with Musk set to be deposed under oath in his bid to walk away from the $44bn offer he made to acquire the company.
  • Subpoenas have been issued to billionaire Larry Ellison, the co-founder of Oracle Corp and Twitter co-founder Jack Dorsey. Dorsey was set to be deposed by Musk’s legal team on Tuesday morning.
  • Twitter’s desired outcome is for Musk to buy the company as agreed for $54.20 per share – an outcome that Musk’s legal team is attempting to subvert entirely.
  • After shares dropped Tuesday morning, TWIT’s stock is trading at 41.68 USD today, up +0.020 (0.048%) since markets closed at 41.66.
  • Twitter’s market capitalisation is currently 31.90B USD.

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