Indices: Australian ASX 200
The ASX200 has slipped 1.2% so far in September, which is nothing dramatic, although the local index has been noticeably soft compared to the US Indices, with the S&P 500 posting new intra-day highs on Friday.
We like the Australian market moving into 2026, which is in line with our bullish equities outlook, especially because of its significant resource weight and high correlation to China, whose economy we believe is turning the corner.
The ASX 200 retreated 0.3% on Thursday, with the losses in the banking sector catching the eye after Bendigo (BEN) became the third bank this week to announce job cuts.
The ASX200 advanced +0.3% on Wednesday, but the performance was extremely polarised on the stock and sector levels. Less than 45% of the main board advanced, but when the “Big Four Banks” rally an average of more than +1.5%, the index will always be hard to suppress.
The ASX200 slipped another 0.5% on Tuesday, extending September’s retreat to 1.9% as the often weak month follows the seasonality script to a tee. Banking shares led the index fall, with heavyweight CBA worst on ground, closing down 1.3%.
The ASX 200 slipped 0.2% on a muted Monday, with over half of the main board finishing lower. Financials and energy led losses, while tech and healthcare bucked the recent trend with a rare day of outperformance.
The ASX 200 rebounded strongly on Thursday, closing up +1%. The banks led the gains, with the “Big 4” up an average of nearly +2%, while the retail and tech names played strong supporting roles.
The ASX200 hit a buyers’ air pocket on Wednesday, leading to its worst day in 5 months when a weak session on Wall Street combined with a strong local GDP print of +1.8% year on year, above the 1.6% expected by economists.
The ASX200 slipped 0.3% on Tuesday, with over 65% of the main board closing lower, led by the consumer discretionary and staples sectors. With reporting season behind us, the local market feels tired and lacklustre after its +26% rally from its panic “Liberation Day” April low.
The ASX200 fell away after an ok first 30 minutes to end Monday, the first trading day of September, down 0.5%. The ASX started the new month on the wrong foot, dragged down by the big banks and major miners, while gold surged to a new all-time high following another post by Donald Trump – more on this later.
