ASX limps into the Weekend ahead of US employment data tonight
Volatility has kicked up in the last few days in what’s proved to be a fairly choppy week for stocks – more so in Australia than anywhere else. The Bond markets have been the cause of most angst with interest rates globally moving sharply higher. US Non-Farm Payrolls are out tonight with the market expecting +200k jobs to have been created. As we wrote in the AM report today, higher interest rates will be tolerated if underlying economic conditions continue to improve, if they don’t and we have a situation where rates are rising yet economic activity is slowing, that’s when stocks will struggle – and we should become more cautious
On the broader market today, the IT sector led the way while most weakness was felt in the Financials which lost -1.47% - an overall range of +/- 50 points, a high of 5781, a low of 5737 and a close of 5754, off -33pts or -0.57%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
BT (BTT) is a stock we own and it’s closed today below $11.00 at $10.87. We covered this on Tuesday mornings note – click here – suggesting a drop below $11.00 was bearish and brings $10.00 into play. We’ll likely close this on Monday for a loss after buying around $11.20.
BT Investment Management (BTT) Daily Chart
Fortescue had an interesting session today with a big selloff down to $5.00 before a recovery back up to $5.19 – we sold this yesterday at $5.34 however it’s pretty clear that there is underlying demand for FMG and buying weakness is the way to play this. A drop back down to mid $4’s will have us keen again.
Fortescue Metals (FMG) Daily Chart
Have a great weekend and keep an eye out for report on Sunday
The Market Matters Team
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