Indices: Australian ASX 200
Monday saw the ASX200 surrender most of its early gains as soft Chinese economic data led to weakness both locally and by overnight US futures. As would be expected, when China’s economy appears to be “struggling”, albeit largely self-inflicted due to its COVID lockdowns, our Resources Sector was the main intra-day drag on the index with BHP Group (BHP), OZ Minerals (OZL), RIO Tinto (RIO) and Fortescue Metals (FMG) all falling away to close lower after a strong initial opening.
The ASX200 experienced a very choppy week which relied heavily on Friday’s +1.9% recovery to stem the sharp losses, it felt a lot worse than the ultimate -1.8% decline. We think the markets looking for an “April/May” seasonal low but our preferred scenario is there’s one more dip on the horizon:
