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On Monday the ASX200 again recovered strongly from early losses to end the session down less than 0.3%, when we take into account weak US S&P500 futures throughout much of our day and Star Entertainment (SGR) plunging almost 23% on more regulatory scrutiny for the sector, we felt it was another solid performance by the local market. It may sound myopic on our part considering we’re still bullish risk assets at current levels but stocks are still absorbing bad news and to us it has the overall feel that too many players are now short, or underweight equities.
A softer start to the week although the market did fight back well from early morning lows to close down only ~20pts. US Futures were sold off around our open today and that dragged the ASX down ~70pts, however 11am saw the worst of it and we grinded +50pts higher for the remainder of the day. Energy the main winner again however Iron Ore was up ~5% in Asia and that supported the material sector.
The ASX200 along with most global equity indices have had the proverbial kitchen sink thrown at them over recent weeks, if I was a “Bear” I would be extremely disappointed with the impact on equities to-date e.g. the ASX200 is only 4% below its all-time high while the US S&P500 has fared even better closing on Friday just 3.4% below its equivalent milestone. The following list of current market headwinds would have at sent all but the most resilient stock markets into official correction territory – a market correction is generally acknowledged to be 10%, or more. This morning’s snapshot list is…
The AX200 staged a solid recovery last week closing the shortened week, for some, up 1.87% with the Energy & Financial Sectors leading the line but with only the healthcare names closing in the red it was an encouraging solid broad-based effort. It still doesn’t feel like any “new money” is entering the market but with 3 of the “Big 4” banks due to trade ex-dividend in November we may see some buying in anticipation of the attractive payouts plus of course a large portion of these funds often returns to the market – the next few weeks is historically a very strong time for the sector which has a major positive influence on the local index.
A positive way to end the week for Aussie shares, supported by the US agreeing to extend the debt ceiling + China coming back online after a week long holiday and equities actually moving higher despite the barrage of negative rhetoric that’s been dribbling out of the Middle Kingdom of late. The Shanghai market up ~1% while Iron Ore rallied ~5% and other commodities did well, the bulk miners in Australia enjoying the change of trend.
The ASX200 rebounded nicely on Thursday as many stocks & sectors continue to rotate on an almost daily basis, on this occasion Tech was the standout winner while the Energy sector took a well-earned breather, almost the exact opposite to the respective moves on Wednesday. It doesn’t feel like “fresh money” is entering or leaving the market which overall makes sense as the index hasn’t moved since mid-June, investors appear to be simply looking for better places to lodge their funds within the market on an…
A fairly lacklustre morning gave way to a bullish afternoon for stocks with the IT sector surging back into vogue at the expense of Energy, the first day of red in many thanks a ~2% pullback in Crude Oil overnight. Overall, good session for Aussie stocks.
The ASX200 disappointingly reversed lower yesterday after a promising early start following a strong night on Wall Street, however 3 major headwinds engulfed our market throughout the day, MM’s view is the plunge by US futures was key to the decline by local stocks but there wasn’t much good news crossing the news wires for investors:
The ASX was looking promising this morning with futures implying a start to trade up +40 points however that quickly evaporated as the more influential sectors of financials & resources came under pressure which accounts for ~40% of the ASX 200. The move from our counterparts over the ditch to raise interest rates and imply more was to come prompted selling around midday while the move to increase serviceability buffers…
We are making change across 4 portfolio’s today:
Flagship Growth: Selling BVS & buying VUK
Emerging Companies: Selling RSG and buying DUB &U PLS
International Equities: Selling ZM US & adding to WFC
Global ETF: Buying ACDC
