Market Matters Afternoon Report 15th July 2016

Afternoon Report 15/07/2016

Market Matters Afternoon Report 15th July 2016

Good Afternoon everyone

Market Data

What Mattered Today

Stocks higher for a seventh straight session today although we did see some selling come into the index from 12.45pm onwards post some decent data from China. More on that below, however on the market we had a range of +/-41pts. 5411 low, 5452 high and a close at 5429; up +18pts or +0.33% to 5429.

Looking at the daily chart highlights the recent strength for the ASX 200 + the weak close we saw today.

Chinese GDP printed 6.7% annualised v 6.6% expected however it wasn’t enough to push the resource sector any higher after a fairly decent run up over the last few weeks. As we made mention of in yesterday afternoons report, it needed to be a very good number to prompt more buying and it seemed to be a case of stocks pricing that in ahead of time. Still, early signs that Chinese economic growth is bottoming is clearly a positive.

We also saw Industrial production slightly ahead of forecasts (6.2% v 5.9% expected), retail sales surprise on the upside (+10.6% v 9.9% expected) while Fixed Asset Investment was a tad light on, printing +9.0% v 9.4% expected.

In aggregate it was a better set of numbers from China however the run up before today in the market generally and resource stocks specifically, has been fairly bold. The Material sector put in a low in February around 6500 and closed today at 8821 – a run-up of around +35%.

Banks were okay today led by Westpac (WBC) which put on +1.04% to close at $30.11 – up from their recent $27.57 low. It outpaced NAB (+0.93%), CBA (+0.44%) and ANZ (+0.40%).

Suncorp (SUN) which is in the MM portfolio was up +0.55% to $12.80 while Henderson Group (HGG) and Macquarie (MQG) were buoyed by a bounce in the British Pound overnight adding +2.09% and +1.04% respectively. HGG in particular is threating to fill the gap left by the surprise BREXIT. One to watch next week.

Golds were weak again, with money continuing to come out of the sector. Some further weakness next week may us keen to come back into the sector. Subscribers can watch for live SMS alerts….

Data sort of dries up next week in the US, China and here in Oz. RBA meeting minutes on Tuesday and skilled vacancies on Wednesday for Australia, some housing data in the US but nothing really major.

Sectors Today

Source; Bloomberg

ASX 200 Movers

What Matters Overseas

…Futures a lad lower at the close in Asia/Pac

***Watch out for the weekend report out Sunday Morning***

All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 15/07/2016. 5:00PM.

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