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The ASX200 slipped back into its recent bad habits yesterday with investors prepared to chase a few bargains into weakness but unfortunately, there remains a clear absence of buyers into any meaningful degree of strength – it appears we need some improvement on the macro level before some real confidence returns to stocks but this can often occur when least expected. However, through Wednesday’s session, it was a sharp decline by the S&P500 futures that changed the initial positive sentiment for the local market as recession fears intensified dragging down influential commodities like crude oil and copper, both were down well over…
An average day for the ASX with the market giving up an early advance after a solid session in the US overnight, US Futures turning lower during our time zone and weakness throughout Asia didn’t help.
The ASX200 opened strongly on Tuesday as anticipated but it was pleasant change compared to the rest of June that we managed to hold onto these gains although a surging S&P500 Futures market certainly helped the sentiment. The main Australian bourse ended the day up +1.4% with over 70% of the main board closing in positive territory. The Financials & Resources Sectors combined to lead the gains with many energy stocks reversing much of Mondays weakness, although a number of the miners struggled to maintain their gains through the afternoon implying they could experience further downside into July e.g. yesterday saw iron ore experience…
The ASX bounced today with some optimism returning to the screens, particularly the index influences with both banks & the resource /energy stocks finding some form while the defensive areas saw profit-taking.
The ASX200 came under renewed pressure on Monday only from a different sector this time as the miners were smacked in line with their underlying commodities e.g. iron ore plunged 11% at one stage yesterday taking Fortescue Metals (FMG) down -8.6% in sympathy. Over 55% of the main board’s stocks rallied over the day but when the heavyweight resource stocks fall ~5% it’s always going to be tough going for the broad market. It feels like different market pockets/sectors are taking it in turns to attract sellers’ attention almost like dominos falling one at a time:
A fairly quiet Monday given US markets are closed tonight although selling was the more obvious impulse overall. Iron Ore fell hard in Asia, down -9.5% as Shenzhen put in place some sporadic lockdowns due to COVID while wider growth fears permeated into the energy and resources complex with some big pullbacks right across the sector.
Global stocks have been smacked in 2022 with losses accelerating over the last few weeks primarily in our opinion because investors have simply lost confidence that central banks can / will balance inflation with economic growth, let’s just consider the RBA and some factors close to home:
Another soft session to end a very poor week for the ASX with the index down by -457pts/-6.6% over the 4 trading sessions. While the US market was soft overnight, down between 2.5% (Dow) & 4% (Nasdaq), their Futures rallied during our time zone today to be trading 1% higher around our close, implying a positive start (at least) there tonight. That saw our market close ~50pts from the session lows today, although it simply seemed a lack of interest following a pretty torrid week. Manly beating the Cowboys at Brooky tonight would help a little!
The ASX200 struggled again on Thursday as it failed to embrace the bounce by overseas bourses following the 0.75% interest rate hike by the Fed, or maybe it was simply smarter expecting the recent equities downtrend to continue over the coming weeks – it would appear so this morning! Overall the session was another lacklustre performance which may have seen the winners and losers evenly matched but when the banks struggle the local index tends to follow suit, Westpac (WBC) for example has now tumbled -20% in just 2-weeks.
A stronger open this morning for quarterly index & options expiry hence the delayed start, however, the first hour saw the best of it and the rest of the day was a soggy affair, a slow, meandering slide as selling kicked into US Futures. The market strength post the 0.75% rate rise in the US was short-lived, probably short-covering and now we enter another vortex of data that could well be filled with negative rhetoric.
