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The Match Out: Stocks flat as focus on virus lockdowns intensify, Temple & Webster (TPW) rallies 10%
A weaker open for the ASX today however after the initial lockdown shock the market was bid up and closed unchanged. Lockdowns are obviously a headwind for the economy however they do push back the chance of rate hikes which is a key focus of markets right now.
Today’s report as its name suggests usually focuses on the macro-economic factors driving financial markets both today and into the future, however as Sydney goes into a 2-week full lockdown and the rest of Australia feels in danger of following suit the deteriorating local virus picture looks highly likely to dominate both the end of the this financial year, & the start of FY22 – NSW represents ~30% of Australia’s GDP.
The ASX200 gave back some ground last week, even after a strong session on Friday, however considering almost 1 million people are back in lockdown in Sydney a loss of under 1% feels to me like an admirable performance. The current measures are already flagged to cost the economy in excess of $300m with the potential to worsen significantly if we fail to contain the Indian Delta variant of COVID.
Another choppy but overall positive session for the ASX today as some parts of Sydney enter a week’s lockdown.
The ASX200 finished a choppy session slightly lower yesterday dragged into the red predominantly by some weakness in the banks and healthcare stocks but considering the escalating Sydney COVID outbreak it was a fairly lacklustre affair.
The ASX chopped around today struggling for direction as the Sydney Covid cluster ticked (rather than surged) higher.
The ASX200 appeared to fall under the weight of the worsening COVID news with NSW restrictions increased as the Bondi cluster continues to grow.
A softer session for the ASX today with the market down early however when higher case counts in Sydney came through and Gladys introduced harsher restrictions there was very little reasons for the market to shake off the sellers.
Join Portfolio Manager James Gerrish & Analyst Michael Clark as they take a deep dive into Uranium Company Paladin (PDN) in the final episode of this series doing a deep dive into 6 stocks MM likes.
We start by looking at Uranium more broadly, the difficult past and optimistic future for a commodity that will be important in a decarbonized world.
The ASX200 reminded us again on Tuesday that there’s a lot of life left in this post GFC bull market as it recovered over 100-points of Mondays plunge to close only marginally down for the week after 2 very volatile sessions. Tuesday saw over 80% of stocks rally with most areas of standout strength almost mirroring where the selling was focused on Monday.
