ASX puts on another 3% as banks join in
WHAT MATTERED TODAY
Another bullish session for the ASX today with the market opening higher and building on those gains throughout the day. Another session of broad-based buying with the index heavy weights (banks) joining the chindig today, Westpac (WBC) adding more than 6% a clear standout on the session, although the entire sector was strong. Clearly, we’ve had a better outcome from a health perspective and now we’re seeing signs that the economic outcome could also be better and that’s providing support for stocks. Banks have lagged and are now due some catch-up in our view. As we suggested this morning, if banks find some love the index could be at 6000 in the blink of an eye.
US Futures were very strong through our time zone today, up more than 2% implying a strong open to US trade tonight after a long weekend. Asian markets also came to the party today finishing higher across the board.
Today the ASX 200 added +164pts / +2.93% to close at 5780 - Dow Futures are trading up +532pts/2.18%
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE:
PM’s Address: Scott Morrison stepped up to the mic at the National Press Club around lunchtime which helped the market climb higher into the close. He was keen to announce plans to “take the economy off life support” insisting Australia was ready to stand on its own two feet after many government incentives and protections roll off later in the year. The main focus was in upskilling the labour force, focussing on a TAFE funding overhaul.
Scomo was also keen to see travellers do their bit, and continues to talk to progress with NZ over a potential travel bubble. He was also keen to shoot down calls for greater protectionism, saying that the Australian economy would be a keen player in global trade, although he did touch on the need for greater stability in the region. The business focus was welcomed, as was the pressure to reduce travel restrictions, and the market pushed higher.
DIRECT FROM THE DESK: A wrap of the days trade with a focus on the banks
BROKER MOVES:
- Eclipx Raised to Outperform at Macquarie; PT A$1.29
- Monadelphous Raised to Buy at Citi; PT A$14.35
- Downer EDI Cut to Neutral at Citi; PT A$4.90
- City Chic Collective Ltd Cut to Neutral at Citi; PT A$2.85
- Atlas Arteria Cut to Sell at Morningstar
- MAQ AU Rated New Positive at Evans & Partners Pty Ltd
- SmartGroup Raised to Add at Morgans Financial Limited
- Insurance Australia Raised to Outperform at Credit Suisse
OUR CALLS
No changes
Major Movers Today
Have a great night
James, Harry & the Market Matters Team
Disclosure
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