The ASX 200 closed down in a session defined by continued selling across gold and materials, with the broader index unable to find meaningful support despite pockets of strength in healthcare, utilities and energy in particular.
The ASX 200 fell sharply today, the damage felt heavily in the resources with gold miners hit hardest as bullion dropped overnight on stronger USD following the Fed’s interest rate hold, while rate-sensitive growth and property stocks continued to struggle in the higher-for-longer rate environment.
The ASX 200 closed up in a decent session, shrugging off the RBA’s move and the immediate Iran-related volatility and instead refocusing on underlying fundamentals. With the RBA firmly in the rear-view mirror following Tuesday's hike, attention has shifted squarely to tonight's US Federal Reserve decision. Tech and real estate led the charge, with growth stocks clawing back recent losses as bond yields settled and seven of eleven sectors finished higher — the kind of broad participation that hints at improving conviction in a wobbled market.
The ASX closed modestly higher on Tuesday in a session that was entirely about one thing: the RBA. A split 5-4 decision to raise the cash rate by 25 basis points to 4.1% initially sent the dollar and bond yields lower as the narrow margin cast doubt over the path ahead, but banks and materials held the index in positive territory, though it wasn't a convincing rally.
The ASX 200 fell as a broad sell-off in the mining sector overwhelmed a solid showing from defensives and financials. Six of eleven sectors finished higher, but that didn't matter much when the heavyweights were doing the damage. Gold miners were hit as bullion continued to slide following two consecutive weeks of declines. Iron ore stocks also weighed after China's state-backed trader eased restrictions on BHP ore grades — partially unwinding last week's fear-driven rally as fresh data showed Chinese steel output fell 3.6% in the first two months of the year.
The dominant forces were geopolitical and monetary policy related. The escalating Iran conflict drove oil above $US101/barrel, stoking inflation concerns and cementing market expectations of an RBA rate hike at Tuesday's meeting - markets are pricing an 80% probability by close. That rate repricing drove a sharp rotation: banks were again the standout beneficiaries, with NAB leading at +1.5%, while gold miners came under significant pressure.
The ASX pushed higher on Wednesday, closing up 0.6% as miners and banks did the heavy lifting in a session defined almost entirely by a hawkish pivot from the RBA. It wasn't a broad rally — only four of eleven sectors finished in the green — but the heavyweights were enough to keep the index comfortably in positive territory. Overnight US futures are pointing to a modestly positive Wall Street open.
The ASX clawed back from Monday’s shellacking, closing up over 1% as Trump’s “pretty much complete” comments on the Iran conflict sent oil tumbling, giving markets room to breathe. It wasn’t a clean recovery. US futures are pointing modestly lower into the close and energy stocks copped heavy profit-taking as the oil tailwind reversed, but the bears didn’t get the follow-through they were looking for, and bargain hunters were active early.
Friday delivered more of the same, with the ASX unable to hold Thursday's recovery as a fresh wave of selling hit the materials sector. The culprit this time wasn't just the Middle East - China's state-backed iron ore buyer CMRG effectively banned traders from purchasing new BHP cargoes, sending the Big Australian down sharply and dragging the broader resources complex with it. It was a messy session to end a soft week, though there were some genuine bright spots. Tech continued its strong bounce and MFG added further gains as the Lowy Family's cornerstone stake gave the Barrenjoey merger story more legs.
The ASX 200 fell sharply today, the damage felt heavily in the resources with gold miners hit hardest as bullion dropped overnight on stronger USD following the Fed’s interest rate hold, while rate-sensitive growth and property stocks continued to struggle in the higher-for-longer rate environment.
The ASX 200 closed up in a decent session, shrugging off the RBA’s move and the immediate Iran-related volatility and instead refocusing on underlying fundamentals. With the RBA firmly in the rear-view mirror following Tuesday's hike, attention has shifted squarely to tonight's US Federal Reserve decision. Tech and real estate led the charge, with growth stocks clawing back recent losses as bond yields settled and seven of eleven sectors finished higher — the kind of broad participation that hints at improving conviction in a wobbled market.
The ASX closed modestly higher on Tuesday in a session that was entirely about one thing: the RBA. A split 5-4 decision to raise the cash rate by 25 basis points to 4.1% initially sent the dollar and bond yields lower as the narrow margin cast doubt over the path ahead, but banks and materials held the index in positive territory, though it wasn't a convincing rally.
The ASX 200 fell as a broad sell-off in the mining sector overwhelmed a solid showing from defensives and financials. Six of eleven sectors finished higher, but that didn't matter much when the heavyweights were doing the damage. Gold miners were hit as bullion continued to slide following two consecutive weeks of declines. Iron ore stocks also weighed after China's state-backed trader eased restrictions on BHP ore grades — partially unwinding last week's fear-driven rally as fresh data showed Chinese steel output fell 3.6% in the first two months of the year.
The dominant forces were geopolitical and monetary policy related. The escalating Iran conflict drove oil above $US101/barrel, stoking inflation concerns and cementing market expectations of an RBA rate hike at Tuesday's meeting - markets are pricing an 80% probability by close. That rate repricing drove a sharp rotation: banks were again the standout beneficiaries, with NAB leading at +1.5%, while gold miners came under significant pressure.
The ASX pushed higher on Wednesday, closing up 0.6% as miners and banks did the heavy lifting in a session defined almost entirely by a hawkish pivot from the RBA. It wasn't a broad rally — only four of eleven sectors finished in the green — but the heavyweights were enough to keep the index comfortably in positive territory. Overnight US futures are pointing to a modestly positive Wall Street open.
The ASX clawed back from Monday’s shellacking, closing up over 1% as Trump’s “pretty much complete” comments on the Iran conflict sent oil tumbling, giving markets room to breathe. It wasn’t a clean recovery. US futures are pointing modestly lower into the close and energy stocks copped heavy profit-taking as the oil tailwind reversed, but the bears didn’t get the follow-through they were looking for, and bargain hunters were active early.
Friday delivered more of the same, with the ASX unable to hold Thursday's recovery as a fresh wave of selling hit the materials sector. The culprit this time wasn't just the Middle East - China's state-backed iron ore buyer CMRG effectively banned traders from purchasing new BHP cargoes, sending the Big Australian down sharply and dragging the broader resources complex with it. It was a messy session to end a soft week, though there were some genuine bright spots. Tech continued its strong bounce and MFG added further gains as the Lowy Family's cornerstone stake gave the Barrenjoey merger story more legs.
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