Indices: Australian ASX 200
The ASX200 closed up +0.4% on Monday, driven to new highs by a resources sector enjoying a new lease of life; it’s already surged +6.7% so far in August. The lithium stocks led the charge following the news that CATL shut down one of the world’s largest mines, but on the index level, it was BHP that added the most points, around 30% of the day’s 38-point gain.
China’s export growth unexpectedly accelerated last month in the fastest gain since April, as demand from around the world compensated for the continued slump in shipments to the US.
The ASX 200 slipped 0.1% on a quiet Thursday, with the index remaining around all-time highs as the exchange where its shares are traded goes from one mess-up to the next.
The ASX200 surged another +0.8% on Wednesday, closing at a fresh all-time high, and well above the psychological 8800 for the first time. Over 75% of the main board closed higher, but the main drivers of the more than 70-point advance were the heavyweight financials and materials sectors, which combined made up almost 60% of the indexes gain.
The ASX200 surged towards new highs on Tuesday, ending the session up +1.2%, only 6 points below its all-time high. Gains were broad-based, with over 90% of the main board advancing, led by the rate-sensitive consumer discretionary, real estate and financial stocks.
The ASX200 recovered from early losses on Monday to end the session in positive territory, an impressive performance considering the Dow’s more than 500-point drop on Friday night.
The ASX200 continued to feel tired last week, although ultimately it only finished down 0.1%. Our preferred scenario is that the market is headed back towards the 8400 area, or 3% lower, a short-term bearish stance supported by Friday nights weak Jobs Report.
The ASX 200 ended the Thursday session down just 0.2%, recovering ~80% of its early decline, with winners and losers evenly matched. July lived up to its seasonal reputation, closing up +2.4%.
The ASX200 surged +0.6% on Wednesday, closing within 0.2% of its all-time trading high after the soft inflation print ignited the rate-sensitive stocks/sectors.
The ASX200 started the week on a firm footing, closing up +0.4%, back within a few points of the psychological 8700 area. The catalyst for the solid day was news that the EU and the US had reached a trade agreement, and President Trump was looking to extend his tariff truce with China – the US S&P 500 futures buoyed sentiment, opening ~0.5% higher on the tariff news.
