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Thursday saw much of the ASX200 embrace the overnight statement from the Fed but when CSL Ltd (CSL), the markets 3rd largest stock, plunges over 8% its always going to be a tough day at the office for the Australian market. However we still expected a little more from the local bourse but as MM touched on yesterday when investors are asked to stump up for $6.3bn in just 24-hours some inevitable selling will roll through other pockets of the market – yesterday it clearly wasn’t limited to healthcare names. The market would have managed a positive close if it hadn’t been for CSL and interestingly most other stocks in the sector closed up, it felt to us that any…
A weak session today however it was only driven by selling in one stock – the rest of the market finished marginally higher when stripping out the impact from CSL. Naturally healthcare was the weakest of the sectors. Tech caught a bid today, finishing more than 2% higher.
The ASX200 was clobbered 0.7% yesterday as it was unable to withstand the “Fed Jitters” – nobody’s questioning whether interest rates are headed higher both in Australia and the US but markets have become fixated with the potential speed of such hikes which will challenge many high valuation stocks and sectors. Hence it was no surprise that the IT Sector was worst on ground yesterday falling 2.6% in a session when only the Utilities stocks managed to advance. The logic is simple to comprehend…
A pretty soft session for the local market which followed the US lead. The tech heavy Nasdaq was weak overnight and the showed up in tech stocks on the ASX today which felt the worst of the selling. Real Estate and telcos were also notably weak. The focus was on US inflation pressures following their PPI data overnight, though the news wasn’t showing up in bond markets, equity markets did feel the pinch. The Producer Price Index…
Yesterday saw the Australian market recover strongly from a 0.5% dip early in the session but the stocks again lacked the strength to forge ahead into positive territory, the market ultimately closed down less than 1-point – as we’ve said before “The song remains the same” with investors happy to buy dips but sellers emerging into strength as the ASX200 continues to rotate around the 7400 area which it first reached back in mid-June, now around 6-months ago.
A solid session by the end of the day after a weak open saw the market down -37pts at its worst before a spirited fightback led to an unchanged session, you’d almost call it a bullish day given that consumer staples fell by nearly 4% on a weak update from Woolworths and a negative broker report on Coles.
The ASX200 rallied 0.35% on Monday which was a reasonable effort considering the Banking Sector closed in the red although heavyweight CBA did manage to finish marginally higher. At both midday and 4pm I felt the market was off and running for its annual Christmas Rally but alas aggressive selling in the futures market after 4pm led to a very poor match which saw local stocks lose almost half of the day’s gains in one fell swoop, looking at US stocks overnight it looks like somebody,,,
A choppy but positive start to the week for the Australian market with strength in the material, energy & property sectors partially offset by weakness amongst financials & healthcare. The best of the session was seen before lunchtime with the market up +60pts at its peak, before a late sell-off created a fairly disappointing / lacklustre finish to trade.
Omicron undoubtedly hasn’t gone away but equities have moved their focus elsewhere, at least for now. The headlines for the variant have remained mixed however international and state governments are forging ahead with their reopening plans with renewed vigour e.g. Queensland’s borders finally opened to NSW and Victoria this morning while Dan Andrews is actually opening the Garden State to visitors from South Africa without the need for quarantine!
The ASX200 rallied over 1.5% last week with all 11 sectors closing in positive territory although it was surprisingly the defensives which led the line i.e. Consumer Staples, Utilities and Real Estate names. It was unusual to see the likes of tech, materials and financials dragging the chain when the market enjoyed such solid gains. At this stage there’s nothing more sinister than some sector reversion / catch up at play towards year end but we are watching out for investors de-risking into 2022.
