Indices: Australian ASX 200

The ASX200 again posted all-time highs last week as a little profit taking in the banks was more than offset by broad based buying across the market led by the IT Sector as bond yields slipped lower removing the headwind which has been suppressing the growth stocks through most of 2021 – our focus today will be on these very same bond yields which have dictated the sector rotation over the last 6-months.

The ASX200 continues to hover around the 7300 area with stock / sector rotation still the main game in town, Thursday saw funds drift out of the banks and resources into the beneficiaries of lower interest rate such as IT, healthcare and real estate although most moves were fairly muted ahead of last night’s US inflation data i.e. at this stage its felt like there’s been some book squaring as opposed to major repositioning, only 1% of the market moving by over 5% yesterday illustrates the point.