Archives: Reports
The ASX200 managed to rally +0.2% yesterday as strength across the broad market was enough to offset selling in the Resources Sector following the significant declines from the likes of copper and crude oil on Tuesday night. The market actually closed on its highs after reversing early losses as some bargain hunting entered previously weak pockets of the market although investors will need convincing that a recession isn’t imminent before we’re likely to enjoy some meaningful follow-through.
We are buying HCA Healthcare (HCA US) in the International Equities Portfolio and the Global Copper ETF (COPX US)
US inflation data will be an important release tonight and that will have a big bearing on where markets go from here. That uncertainty was obvious in the local market today with the index trading in a tight range, before popping higher into the close. The Energy and Resource stocks hit hard, particularly in early trade before some recovered while the retailers and IT stocks did well.
We are making a large number of changes across the domestic portfolios today, with a further alert to come for our international holdings later in the day.
The ASX200 drifted steadily lower throughout Tuesday to close up just 4-points after being almost 50-points to the good earlier in the day, fortunately for the index the banks were firm on yet another day when investors showed zero interest in buying strength. Ultimately less than 35% of stocks closed up for the session which saw further weakness across the Resources Sector as recession fears continue to gather momentum, a number of major miners made fresh multi-month lows including the 5 below while others look destined to follow their lead over the coming days:
A mixed bag today with defensives holding up while anything growth-related fell away – low volume again for the ASX keying off a similar theme in the US (slowest session of the year overnight) ahead of inflation data tonight + earnings season kicking into gear.
The ASX200 fell over 1% yesterday as increasing Covid cases across the globe started to weigh on an already fragile market – it already feels like ages ago that everybody was trying to buy into the re-opening trade! Over 80% of stocks on the main board fell on Monday but although there was broad based weakness it was on relatively low volume suggesting buyers simply took a step backwards as opposed to the sellers returning in force. Rising economic fears weighed on the miners as would be expected with a number of prominent names very close to making fresh 2022 lows e.g. OZ Minerals (OZL), BHP Group (BHP) and South32 (S32).
A very quiet but overall negative session to kick off the new trading week with the positive read-through from SPI Futures on Saturday morning giving way to a slow and steady, meander lower for stocks, weighed by weakness across Asia as Covid numbers tick higher.
The title for Monday’s report over the last fortnight has been “Here comes the bounce – 1 & 2” and the ASX200 has delivered on the index level albeit in a slow and choppy manner with major stock/sector rotation unfolded beneath the hood – investors are swinging their attention between focusing their fears on either rising inflation/bond yields or an imminent recession. On Friday night strong US employment data saw an expected rally in bond yields which initially sent US stocks lower but it was encouraging for the short-term bulls like MM that they ground back to close unchanged setting the stage for a firm open by local stocks this morning.
The ASX200 experienced a choppy week which threatened to unravel on Wednesday only to come good on the home stretch with the local index finally closing up over +2% on broad based buying which saw over 80% of the main board close higher come Friday afternoon. However the real action was in the Resources Sector which ultimately closed mixed, overall this feels like a good result considering the carnage which was witnessed on Wednesday:
