Skip to Content

ASX – Financials and Resources

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

The Latest Q&A

Question asked

ASX – Financials and Resources

Hi guys, sorry, it's the 2nd question from me this week. Back to the local index, ASX200. If resources finally get a kick up the bum and fingers crossed, we finally start to see rates drop towards the end of the year, would this not carry the ASX into new highs? I'm thinking as soon as rates start to ease, new builds may increase giving the banks more mortgages to issue. As we know, they don't like passing down the rate drops to quickly, so again, increasing their NIM can only be a good money maker. The combination of resources and financials is normally a good combo for us. How much of this may be priced in already in anticipation. Even with the banks so high, surely there is no one left to sell from the big institutions. Regards, Simon


Hi Simon,

We largely agree with your thoughts with both of the important sectors you mentioned looking poised to trade higher:

  • The resources look to have commenced a recovery although to get fully excited they will need to see an improvement by the Chinese economy.
  • The banks remain on track, to make fresh 2024 highs, even in the face of huge skepticism e.g. we are targeting the $30 area for ANZ Group (ANZ), or 5% higher.

However, while our preference is for the ASX200 to post new highs in the coming months we would be reticent to chase the index through 8000. In terms of rate cuts, the markets leaning towards a rate rise in 2024 hence if see no change by Michelle Bullock et al into Christmas its likely to be well received by stocks.

image description

Relevant suggested news and content from the site

Back to top