The ASX 200 was clobbered on Thursday, as a trifecta of bad news overshadowed another impressive result from Nvidia. Selling was broad-based, with more than 75% of the main board leading the market's worst day since June. Globally, it was a session that favoured semiconductors over miners, an unfortunate combination for the local market given the ASX is heavily exposed to the latter and has virtually none of the former:
The ASX 200 surrendered early gains on Wednesday after inflation data came in far stronger than expected, weighing heavily on overall sentiment and specifically the rate-sensitive names. Just to compound the market’s woes, yesterday's reporting wasn’t kind, with major disappointments from Worley (-10.8%), WiseTech (-10.1%), and Flight Centre (-7.4%) offsetting further strength in gold and copper names.
The ASX 200 enjoyed a more broad-based advance on Tuesday, with 70% of the main board closing higher, pushing the index up +0.7%. The banks finally gave the index a helping hand, but they still couldn’t figure in the top 3 stocks contributing to the market's 62-point advance; the podium was headed by BHP, again (+9 points), followed by CSL (+7-points), and Suncorp (+5-points). Elsewhere, we saw some profit-taking creep into the high-flying gold sector while the tech stocks more than picked up the slack, taking their cue from a reversal higher by the semiconductor-driven Korean KOSPI Index.
The ASX 200 rallied +0.5% on Monday to close just above the psychological 9100 level, but it wasn't all plain sailing with less than 55% of the main board closing higher. The story remained consistent on the sector front, with the gains by the materials (+61 points) minus the financials (-21 points) almost exactly equalling the day's +44-point net advance. The miners remain the driving force of the ASX, and the reason we’ve recently been outperforming the US, especially since the Treasury pledged support to try and rein in long-dated US bond yields. BHP Group (BHP) grabbed the headlines on Monday, posting new all-time highs, but there were plenty of standout performances amongst the big miners.
Last week saw Scott Bessent emerge as one of the most interventionist Treasury secretaries in financial markets in decades, putting his and the Treasury's credibility on the line in an effort to combat the damaging rise in US borrowing costs. On Wednesday, just two weeks after releasing its schedule for buying back older Treasury securities, the Treasury Department announced it would “at least double” its planned purchases of outstanding 10-year to 30-year debt.
The ASX 200 closed up +0.3% on Thursday with the resources, ably supported by tech, finally able to offset weakness from the banks, ending a six-day losing streak. On the day, the materials sector added 85-points to the ASX 200 while the financial sector caused a 57-point drag, big numbers when we consider the index only closed up +30-points. The polarisation in performance through August between the banks and miners has been almost unparalleled.
The US yield curve has been steepening sharply, with the gap between 2 and 30-year yields widening to ~111bp from ~69bp in late June. Importantly, this is a bear steepener: long-term yields have been rising much faster than short-term yields, reflecting growing investor concern around US deficits, sticky inflation, elevated oil prices and the enormous supply of government and corporate debt. At the same time, softer economic data and a Fed appearing to be on hold for now are keeping the 2-year yield relatively anchored.
The ASX 200 closed flat on Wednesday, experiencing a quiet day on the index level but anything but on the stock front following a bumper session for FY26 earnings. Only ~30% of the main board closed higher, but when CSL (+17%), BHP (+3%), and Goodman Group (+3%) dance to the same beat, adding 70 points to the ASX 200, it was always going to be a tough day for the bears, even if the crowd was in their camp.
The ASX 200 tried to reverse higher into lunchtime on Monday, only for steady, targeted selling throughout the afternoon to drag the index down by ~0.5%. On the stock & sector level, it was almost a carbon copy of August so far, with the miners again attempting to prop up an index weighed down by the flow-on effects of a softening housing market, where activity has ground to a near standstill since the May Budget. Consumer Discretionary, which we’ll revisit later, led the sell-off, falling 3%, while Financials and Real Estate also came under pressure, both declining more than 1%.
The latest US earnings season propelled the S&P 500 to fresh highs last week, delivering the strongest first-half earnings growth since the post-COVID rebound of 2021. Moving forward, consensus expects the 1H26 earnings boom to moderate but remain solidly positive, +10.5% in 1H27 and +15.0% in 1H28 (see orange below), suggesting the market anticipates a sustained, if more normalised, earnings expansion cycle rather than a one-off spike. If we look at the numbers in an even more granular fashion, it's not surprising US indices are posting fresh highs.
The ASX 200 surrendered early gains on Wednesday after inflation data came in far stronger than expected, weighing heavily on overall sentiment and specifically the rate-sensitive names. Just to compound the market’s woes, yesterday's reporting wasn’t kind, with major disappointments from Worley (-10.8%), WiseTech (-10.1%), and Flight Centre (-7.4%) offsetting further strength in gold and copper names.
The ASX 200 enjoyed a more broad-based advance on Tuesday, with 70% of the main board closing higher, pushing the index up +0.7%. The banks finally gave the index a helping hand, but they still couldn’t figure in the top 3 stocks contributing to the market's 62-point advance; the podium was headed by BHP, again (+9 points), followed by CSL (+7-points), and Suncorp (+5-points). Elsewhere, we saw some profit-taking creep into the high-flying gold sector while the tech stocks more than picked up the slack, taking their cue from a reversal higher by the semiconductor-driven Korean KOSPI Index.
The ASX 200 rallied +0.5% on Monday to close just above the psychological 9100 level, but it wasn't all plain sailing with less than 55% of the main board closing higher. The story remained consistent on the sector front, with the gains by the materials (+61 points) minus the financials (-21 points) almost exactly equalling the day's +44-point net advance. The miners remain the driving force of the ASX, and the reason we’ve recently been outperforming the US, especially since the Treasury pledged support to try and rein in long-dated US bond yields. BHP Group (BHP) grabbed the headlines on Monday, posting new all-time highs, but there were plenty of standout performances amongst the big miners.
Last week saw Scott Bessent emerge as one of the most interventionist Treasury secretaries in financial markets in decades, putting his and the Treasury's credibility on the line in an effort to combat the damaging rise in US borrowing costs. On Wednesday, just two weeks after releasing its schedule for buying back older Treasury securities, the Treasury Department announced it would “at least double” its planned purchases of outstanding 10-year to 30-year debt.
The ASX 200 closed up +0.3% on Thursday with the resources, ably supported by tech, finally able to offset weakness from the banks, ending a six-day losing streak. On the day, the materials sector added 85-points to the ASX 200 while the financial sector caused a 57-point drag, big numbers when we consider the index only closed up +30-points. The polarisation in performance through August between the banks and miners has been almost unparalleled.
The US yield curve has been steepening sharply, with the gap between 2 and 30-year yields widening to ~111bp from ~69bp in late June. Importantly, this is a bear steepener: long-term yields have been rising much faster than short-term yields, reflecting growing investor concern around US deficits, sticky inflation, elevated oil prices and the enormous supply of government and corporate debt. At the same time, softer economic data and a Fed appearing to be on hold for now are keeping the 2-year yield relatively anchored.
The ASX 200 closed flat on Wednesday, experiencing a quiet day on the index level but anything but on the stock front following a bumper session for FY26 earnings. Only ~30% of the main board closed higher, but when CSL (+17%), BHP (+3%), and Goodman Group (+3%) dance to the same beat, adding 70 points to the ASX 200, it was always going to be a tough day for the bears, even if the crowd was in their camp.
The ASX 200 tried to reverse higher into lunchtime on Monday, only for steady, targeted selling throughout the afternoon to drag the index down by ~0.5%. On the stock & sector level, it was almost a carbon copy of August so far, with the miners again attempting to prop up an index weighed down by the flow-on effects of a softening housing market, where activity has ground to a near standstill since the May Budget. Consumer Discretionary, which we’ll revisit later, led the sell-off, falling 3%, while Financials and Real Estate also came under pressure, both declining more than 1%.
The latest US earnings season propelled the S&P 500 to fresh highs last week, delivering the strongest first-half earnings growth since the post-COVID rebound of 2021. Moving forward, consensus expects the 1H26 earnings boom to moderate but remain solidly positive, +10.5% in 1H27 and +15.0% in 1H28 (see orange below), suggesting the market anticipates a sustained, if more normalised, earnings expansion cycle rather than a one-off spike. If we look at the numbers in an even more granular fashion, it's not surprising US indices are posting fresh highs.
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