The index ended last week on the front foot, an impressive +4.5% above the month’s low, although we haven’t embraced the bounce as enthusiastically as the US, where the S&P500 is now only 2% below its all-time high—what a difference a week makes! At this stage, markets are more comfortable that rate cuts may be delayed than a recession is in the offing. So far this month, the ASX200 is down only -1.5 %, with the Energy & Materials stocks continuing to weigh on the ASX. However, outside of China issues, valuations remain stretched, likely leading to elevated volatility whenever the sentiment vaguely sours.
