Indices: Australian ASX 200
The ASX200 has been consolidating its impressive recovery from “Liberation Day” for the last five weeks, which is no surprise to MM. The action has been focused on the stock and sector levels, where things have been far from quiet.
The ASX 200 closed up +0.6% on Thursday, a further 0.6% gain today, and it will post a fresh intra-day high. The rotation on the stock/sector level is currently chaotic, with yesterday’s moves largely a reversal of Wednesday’s, although the recovery by lithium names continues to gather bullish momentum.
The ASX200 fell 0.6% on Wednesday, its largest decline in two months, as the market spent its 26th day rotating in a relatively tight 200-point range.
The ASX200 had plenty of reasons to fall on Monday, but again, come 4 p.m., the bears were left disappointed: Trump is throwing around tariffs again like confetti, the Dow dropped over 400 points, and the almost guaranteed RBA rate cut failed to materialise.
The ASX200 closed down 0.2% on Monday, largely shrugging off weakness across US futures markets as Trump’s tariff deadline moved ever closer. Over 40% of the main board managed to close higher, with most of the major movers on the day being news-led.
The ASX200 has continued to consolidate over the last few weeks, which is no surprise to MM after its impressive surge from its April lows. However, as expected, the volatility is rising on the stock and sector levels.
The ASX200 has started July in subdued fashion, remaining unchanged after its first two trading sessions. As would be expected after a quiet start to the week and month, news was thin on the ground, but we did see some action starting to unfold on the stock level.
A slightly shorter report today as we take a deep breath after our busiest day of the year. As the saying goes, there are two certainties in life: “death and taxes”. At MM, we see it big time with investors taking out subscriptions ahead of the EOFY, a great win-win in our opinion.
The ASX200 has consolidated over the last few weeks, which is no surprise to MM after its impressive surge from its April lows. While we see no reason to fight the bullish trend, especially as we enter July, which has delivered an average +2.9% gain over the last decade, we don’t believe all stocks will move as one.
The ASX 200 experienced another quiet session on Thursday as the market followed the choppy consolidation, with an upside bias, that we expected at the start of the month. The local market ultimately slipped 0.1%, although over 55% of the main board closed higher.
