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All signs pointed to the ASX following U.S markets higher pre-session but it was the weaker energy space and a few big hitting ex-divi names that dragged the index lower – BHP’s dividend accounted for 12 index points by itself with Woodside, Rio Tinto and Commonwealth Bank among the heavyweights entitling shareholders to dividends today and seeing cash flow out of the market.
The ASX200 retreated another 0.7% on Wednesday, with over 70% of the main board closing lower. Although it was encouraging to see equities bounce from their lunchtime low when the index was down over 100 points, the reality of Trump’s tariffs has shaken stocks in the last three weeks, and he apparently has not finished yet.
The ASX fell again today, though the decline was more lethargic than aggressive as Trump delivered the longest joint address to Congress in the last 60 years (~90 mins long) while China confirmed an about 5% growth target and an expansion of the deficit to 4%.
We are making two changes to the Active Growth Portfolio today.
The ASX200 struggled again on Tuesday following a tough session on Wall Street, although the -0.6% decline was significantly better than the US S&P500, which tumbled -1.8% as the large-cap tech names received attention from the sellers.
The market gave back two thirds of yesterday’s gains today as tariffs came in effect on Canada, China & Mexico and Trump took aim at Ukraine following the heated exchange with President Zelensky in the White House. 75% of the main board finished lower, with small caps underperforming large by around 1% i.e. clearly a risk off session.
MM is adding a new position to the Active Income Portfolio today.
The ASX200 rallied +0.9% on Monday after Chinese Manufacturing Data came printed better than expected: The Caixin PMI came in at 50.8, well above the 50.4 consensus forecast, delivering its fastest expansion rate in three months.
A change of fortunes for the ASX today with a positive start to the week; the recently soft sectors saw some strong buying, particularly areas exposed to China while the momentum stocks that struggled through reporting have attracted some money into the dip.
There’s recently been plenty of headline news to trouble investors, although much of it was flagged in Trump’s election campaign speeches. Still, when it becomes a reality, it causes a migration into defensive assets.
