Indices: Australian ASX 200

The ASX200 pushed to within 3% of its all-time high last week, even while US indices struggled. The clear difference was the abovementioned long-dated bond yields in the US, and a rejuvenated, feisty Trump weighing on US stocks.

The ASX 200 retreated on Thursday following a bond-induced weak session on Wall Street; the Dow ultimately closed down over 800 points. However, while the local bond market remains buoyant, following the dovish RBA commentary earlier in the week, with three cuts expected before Christmas, it wasn’t enough to support a market with over 60% of the main board closing lower.

Yesterday, we hosted a Webinar with James Gerrish & Shawn Hickman covering market views, 3-stocks to buy, and 3 we’re more cautious on following strong runs.

The ASX200 advanced +0.6% on Tuesday following the 0.25% rate cut by the RBA and a far more dovish outlook from Michele Bullock. Bond yields plunged on commentary about inflation, now within the RBA target band both in terms of the headline rate and the trimmed mean, with RBA forecasts expecting it to stay that way.

Monday saw the ASX200 fail to notch its 9th consecutive gain following Moody’s US credit rating downgrade. The index finished down -0.6%, with over 65% of the main board retreating in line with US S&P 500 futures ahead of the night’s fascinating session.

The ASX 200 enjoyed another “risk on” week for stocks gaining +1.4% and hitting a 3-month high in the process. The index rallied for the 8th consecutive day on Friday, taking it back within 3% of its all-time high, as the US-China “Trade Truce” and rate cut hopes paved the way for the gains.

The ASX 200 rallied for a seventh consecutive day on Thursday. Although the gain of less than 2% has been relatively modest, the sellers remain largely absent as bank dividends are due to hit investors’ accounts next month, and the EOFY looms.

The ASX 200 struggled early on Wednesday before rallying into the close to finish the session up just over 10 points, enjoying its sixth day of consecutive gains, and posting its highest close in 11 weeks.

The ASX200 advanced +0.4% on Tuesday, posting a new 12-week high, but overall it was a disappointing performance after an early +1% move, especially compared to the 3.3% overnight surge by the US S&P 500 Index.

The ASX200 slipped 0.1% last week, leaving the index up just under 1% year-to-date, not much of a change for such a volatile year!