Indices: Australian ASX 200
The ASX 200 surrendered early gains as “Trump tariff talk” weighed on the already “stretched” market. Ever since he’s heard the “TACO” phrase, the president has been talking a lot tougher. Only time will tell if the acronym is true or not, i.e. “Trump Always Chickens Out”.
The ASX200 posted a record close on Tuesday as broad-based buying took the index up 0.8%, with the heavyweight financials leading the market higher; the “Big Four” gained an average of 1.2%.
The ASX200 advanced +1% last week with the rare combination of financials and energy stocks leading the charge. Nothing has been “normal” about the last few months, but we can “play” with the numbers to get an idea of what the next few months may deliver.
Wednesday saw the ASX 200 rally to within 1% of its all-time trading high on broad-based buying, with over 70% of the main board advancing, including the all-important banks and large-cap miners; the path of least resistance remains on the upside.
The ASX200 advanced +0.6%, closing less than 2% below its February all-time high. The market held onto early Wall Street-inspired gains after the US extended its pause on some Chinese tariffs to August 31, providing a tailwind for risk-on sentiment in the region.
The ASX200 advanced +0.9% last week pushing the index within striking distance of its all-time. However, the upside momentum has been slowly diminishing through May.
The ASX 200 closed marginally higher on Thursday, and as we enter the last trading day of May, the index is up +3.5% with only the utilities sector dragging the chain.
The ASX 200 failed to build on a strong session on Wall Street, finishing down 0.1% on Wednesday, with weakness in the banks more than offsetting broader buying, as over 55% of the main board closed higher.
The ASX200 advanced +0.6%, closing at a three-month high, on Tuesday. The index was trading lower into lunchtime before the S&P 500 futures got the proverbial “bit between its teeth,” pushing higher after Japan indicated it’s considering a reduction in bond issuance.
The ASX200 ended flat in a surprisingly quiet session on Monday, considering the market uncertainty around tariffs towards the EU and Apple, plus the recent volatility with the longer-dated bonds.
