ASX takes foot off the throttle
WHAT MATTERED TODAY
The ASX took it’s first backward step in over a week today, taking a breather after 7 consecutive sessions of gains. The local market did have another nudge at closing higher, coming back from early weakness though it eventually succumbed to the selling. The banks weighed on the market – US banks kicked off their reporting period overnight, and while earnings largely beat, investors remain concerned about the looming stimulus cliff and what that could mean for bad debts. On the other hand, JP Morgan actually released $600m of provisions after seeing the loan book hold up better than feared. Similarly, Bank of Queensland (BOQ) had a better than feared result but it wasnt enough to support the majors, seeing a bit of profit taking no doubt after some decent strength of late. Industrials were also on the softer side with travel stocks under pressure on setbacks for two vaccines.
On the flip side, healthcare was supported with heavyweight CSL tightening their guidance range at the company’s AGM today, though it didn’t do all the work itself with most of the sector closing higher on a soft day. Tech also outperformed – APT the standout which we mentioned in today’s Income Note.
In the region, Asian equities were mixed. Hong Kong was lower after reopening after a tropical storm kept markets closed yesterday. China is touting their 5 year plan which was little help to equities. President Xi was announcing his vision for growth in the region with a focus on South East China becoming a technology hub, though traders weren’t overly moved.
By the close, the ASX 200 fell by -16pts / -0.27% to close at 6179. Dow Futures are trading up 30pts/0.10%
ASX 200 Chart
ASX 200 Chart
BROKER MOVES
- Hub24 Raised to Neutral at Macquarie; PT A$22.50
- Afterpay Raised to Outperform at RBC; PT A$107
- Star Entertainment Cut to Hold at Morningstar
- Woolworths Group Raised to Overweight at Morgan Stanley
- Flight Centre Cut to Neutral at Credit Suisse; PT A$15.31
- Treasury Wine Raised to Neutral at JPMorgan; PT A$10
OUR CALLS
No changes today
Major Movers Today
Have a great night
Harry & the Market Matters Team
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