Excitement fades into the weekend
WHAT MATTERED TODAY
Momentum faded into the weekend today as the market gave back part of the rally seen through the week, the bulk of the selling seen late in the day into the close as the buyers backed off. Equities were sold off ahead of Trump’s press conference tonight where the US president is keen to talk tough on the China’s aggression in Hong Kong. Trump has been talking tough on a number of issues in an attempt to assert his dominance with the US election later this year, and he isn’t expected to back down tonight. Banks were the biggest losers today, though it was really just a relative sell off to their outperformance through the week’s trade. Energy held up on rumours that Russia and the Saudi’s were keen to work together to support oil prices in the short term. Iron ore names outperformed as Brazil continues to see rising cases of corona virus which threatens their supply into the market. The ASX toyed with the 5800 level today, a key technical level for those following Fibonacci retracement as it represents a bounce of about 50% of the crash to the March lows. It will be interesting to see how the market trades to start next week. Despite today’s fall, the week’s 5% gain was the best since the second week of April as liquidity across markets drives equities higher.
Overall, the ASX 200 closed down -95pts or -1.63% to 5550. Dow Futures are trading down -147pts/-0.60%.
ASX 200 Chart
ASX 200 Chart
CATCHING MY EYE;
Sector moves this week
Stock moves this week
BROKER MOVES;
· Viva Energy Group Raised to Add at Morgans Financial Limited
· Centuria Office REIT Raised to Outperform at Credit Suisse
· Blackmores Raised to Market-Weight at Wilsons; PT A$70.50
· Atlas Arteria Raised to Hold at Morningstar; PT A$6.20
· Brickworks Cut to Hold at Morningstar
· Adairs Raised to Buy at Goldman; PT A$2.40
· New Hope Cut to Neutral at Credit Suisse; PT A$1.50
· Ampol Raised to Overweight at Morgan Stanley; PT A$31
· AGL Energy Cut to Hold at Morgans Financial Limited; PT A$17.15
· IDP Education Cut to Hold at Blue Ocean; PT A$17
· Bendigo & Adelaide Raised to Neutral at Credit Suisse; PT A$7
OUR CALLS
Major Movers Today
Have a great Weekend all
Harry & the Market Matters Team
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