Defensive rotation dominated Friday's session as traders continued to shed miners and banks in favour of healthcare and consumer staples, with iron ore's slide to a three-month low and lingering global uncertainty around the lingering Iranian situation hurting sentiment. The ASX 200 finished the week down –1.22%, capping a broadly risk-off five days.
The ASX was on the back foot from the opening bell as investors digested overnight missile strikes between the US and Iran. Selling was significant but orderly, with the market moving gradually lower through the morning before popping and stabilising ~30pts above the lows for much of the afternoon.
The market pushed higher as the day progressed, underpinned by weaker-than-expected GDP data bolstering hopes the Reserve Bank may hold off on further rate increases. The economy is slowing, the budget has knocked confidence, and it would be extraordinary if the RBA hiked in this environment – the market is slowly latching onto this view by the look.
The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street's record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious.
The ASX opened lower and chopped around for most of the day until a sustained upward move in the afternoon pulled the index back to close near flat. Belief in a potential US-Iran ceasefire continued to be hold firm despite a rebound in oil prices, though there was plenty of action under the surface. Technology was the standout sector, with local software stocks tracking the positive move in the U.S on Friday night, while Banks and Healthcare names dragged.
The ASX 200 bounced back strongly today, recovering almost all of yesterday’s losses as reports of a tentative 60-day ceasefire extension between the US and Iran sparked a broad risk-on rally. Falling oil prices, easing inflation concerns and lower bond yields fuelled buying across the market, with Materials, Technology and Real Estate leading gains while Energy lagged as crude slipped to five-week lows.
A tough session for the ASX today following fresh escalation in the Middle East. The local market turned sharply lower after Iran claimed it had targeted a US military base following American airstrikes near Bandar Abbas, reigniting fears around oil supply disruptions with U.S President Donald Trump objecting to Iran’s claim to the Strait of Hormuz and asserting no one nation should control the vital waterway – a key sticking point in resolving the crisis.
The ASX traded in two very different halves today, opening weaker as Financials extended yesterday’s selling pressure before a softer-than-expected CPI print sparked a broad rebound across the market. Once the inflation data hit, rate-sensitive sectors quickly caught a bid as traders pared back expectations of another near-term RBA hike, helping the index finish strongly into the close.
The ASX dropped to open the session but clawed back some of the losses through the day with the local market digesting fresh US strikes on Iranian targets this morning. While the escalation initially rattled sentiment, investors seemed reluctant to panic, with oil prices remaining relatively subdued despite the developments.
The ASX finished modestly higher to start the week as oil prices fell more than 5% on growing optimism that a US-Iran deal to reopen the Strait of Hormuz could be imminent.
The ASX was on the back foot from the opening bell as investors digested overnight missile strikes between the US and Iran. Selling was significant but orderly, with the market moving gradually lower through the morning before popping and stabilising ~30pts above the lows for much of the afternoon.
The market pushed higher as the day progressed, underpinned by weaker-than-expected GDP data bolstering hopes the Reserve Bank may hold off on further rate increases. The economy is slowing, the budget has knocked confidence, and it would be extraordinary if the RBA hiked in this environment – the market is slowly latching onto this view by the look.
The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street's record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious.
The ASX opened lower and chopped around for most of the day until a sustained upward move in the afternoon pulled the index back to close near flat. Belief in a potential US-Iran ceasefire continued to be hold firm despite a rebound in oil prices, though there was plenty of action under the surface. Technology was the standout sector, with local software stocks tracking the positive move in the U.S on Friday night, while Banks and Healthcare names dragged.
The ASX 200 bounced back strongly today, recovering almost all of yesterday’s losses as reports of a tentative 60-day ceasefire extension between the US and Iran sparked a broad risk-on rally. Falling oil prices, easing inflation concerns and lower bond yields fuelled buying across the market, with Materials, Technology and Real Estate leading gains while Energy lagged as crude slipped to five-week lows.
A tough session for the ASX today following fresh escalation in the Middle East. The local market turned sharply lower after Iran claimed it had targeted a US military base following American airstrikes near Bandar Abbas, reigniting fears around oil supply disruptions with U.S President Donald Trump objecting to Iran’s claim to the Strait of Hormuz and asserting no one nation should control the vital waterway – a key sticking point in resolving the crisis.
The ASX traded in two very different halves today, opening weaker as Financials extended yesterday’s selling pressure before a softer-than-expected CPI print sparked a broad rebound across the market. Once the inflation data hit, rate-sensitive sectors quickly caught a bid as traders pared back expectations of another near-term RBA hike, helping the index finish strongly into the close.
The ASX dropped to open the session but clawed back some of the losses through the day with the local market digesting fresh US strikes on Iranian targets this morning. While the escalation initially rattled sentiment, investors seemed reluctant to panic, with oil prices remaining relatively subdued despite the developments.
The ASX finished modestly higher to start the week as oil prices fell more than 5% on growing optimism that a US-Iran deal to reopen the Strait of Hormuz could be imminent.
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