The ASX200 retraced early losses following the encouraging comments from the RBA, the number of winners & losers was fairly evenly balanced but solid gains in the banks were enough to offset losses in the Resources Sector as investors shift their concerns from rate hikes to the increasing recession into 2023 i.e. as we’ve said repeatedly over the last few years “what a difference a month, or two, makes”.
- We remain neutral the local market following its classic June & July market bounce – over 9% on this occasion.
- The relatively bullish comments by the RBA looks like it may lead to a quiet but choppy August as investors attempt to 2nd guess what comes next
Overnight we saw US stocks drop courtesy of Nancy Pelosi’s arrival in Taiwan making her the highest ranking US official to visit the country in 25-years, the US are certainly antagonising the Chinese with no obvious upside which caused weakness across the region yesterday e.g. Hang Seng -2.4% ands the Nikkei -1.4%. The SPI Futures are pointing to a -0.2% pullback this morning but overall local stocks do currently feel firm into any pullbacks.
MM is now neutral the ASX200 in the 7000 area
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