Buy weakness, sell strength, a phrase we’ve used too often in recent times however yesterday’s strong recovery from the lows and todays sell-off at the highs played to that tune, today the market was up +100pts early on before closing around ~50pts below the session highs. The Material & Financial stocks bounced back today after a tough period with only the Healthcare sector trumping them while a 5% decline in Altium (ALU)...
The market was hit early down ~85 points at the worst however the buy the dip mentality emerged again and we saw a decent recovery from the early lows of the session, COVID numbers in NSW going the right way helped but so too did a recovery in the US Futures market during our time zone. For the market to close down 33 points when the Dow was off 700+ points is a solid effort. Lots to get across today on the stock front while from a sector perspective, the lockdown stocks namely Healthcare & IT did best while those linked to economic growth being Materials & Energy struggled again.
The market was hit early thanks to a combination of weak overseas leads, US futures edging lower and the economic reality locally that we’ve shut down a large part of the domestic economy to fight the COVID battle. As a consequence, many are feeling extremely frustrated about the approach taken in NSW plus of course the difficulty in understanding + accessing support packages. That’s the feedback I’ve been getting from business owners in the last 24 hours and its clearly this growing frustration that has prompted Gladys to put a vaccination target of 62% of the State’s population to be vaccinated before these sorts of lockdowns will become a thing of the past.
Resilience is the first word that springs to mind to describe this weeks performance by the ASX with the index edging ~1% higher despite lockdowns for 50% of the Australian population. We’ve clearly got confidence in our ability to overcome this set back and/or the ability for Governments to underwrite the economic impacts.
A weaker session today with all market sectors lower bar materials & utilities, the former mainly supported by a good move in Gold which has broken out through the $US1800 handle to be trading at $US1831 at our close while the latter was a result of the takeover launched for Spark Infrastructure (SKI). The move in gold talks to the risk off mentality that was seen today as Melbourne is tipped to be entering lockdown. With the two main economic engines of the Aussie economy likely to be in lockdown the market gave back all of the early gains and some to close marginally lower.
A choppy session for Aussie stocks today with most focus on the Buy Now Pay Later (BNPL) sector that was hit on the back of news that Apple (AAPL US) was entering the fray, most players in the sector off ~10%. That weighed on the IT sector which fell 2.7% however that was pretty much entirely related to the BNPL companies while tech generally was positive while the Utilities was a standout up more than 3%.
The market saw a strong open up ~50 points early on however sellers got the upper hand and stocks simply drifted lower all day before a big Market on Close (MOC) order hit which knocked 16 points from the market in the match alone. The broader industrials & utilities best on ground today however no sector added more than 1%, while the Real-Estate stocks experienced some mean reversion after yesterday’s strong performance.
A risk on session to start the week with another 112 cases of COVID in NSW failing to dent sentiment early on. The market opened higher and did a good job of maintaining strength throughout the session. The resource stocks bounced back strongly, BHP up through $51 a standout and when the bulk of the sector rallies ~3% and banks also edge higher it’s hard for the market to do anything but rally.
A softer session to end the week for the ASX as ‘reflation wobbles’ hit the market to send stocks lower. Global growth expectations have taken a hit in the last 24 hours and as we suggested this morning, that’s being shown clearly through a decline in longer dated bond yields globally – a wobble rather than a change in trend in MM’s view. 154 stocks from the ASX 200 closed lower today with all sectors bar Energy finishing in the red
A fairly muted session above the waterline today however lots happening beneath the surface headlined by a rally in Zip Co (Z1P) on reports in the AFR of a strategic buyer taking a 4% / ~$160m stake - more on that below while downtrodden Nuix (NXL) also saw some love with shares rallying today, albeit from very depressed levels.
The market was hit early down ~85 points at the worst however the buy the dip mentality emerged again and we saw a decent recovery from the early lows of the session, COVID numbers in NSW going the right way helped but so too did a recovery in the US Futures market during our time zone. For the market to close down 33 points when the Dow was off 700+ points is a solid effort. Lots to get across today on the stock front while from a sector perspective, the lockdown stocks namely Healthcare & IT did best while those linked to economic growth being Materials & Energy struggled again.
The market was hit early thanks to a combination of weak overseas leads, US futures edging lower and the economic reality locally that we’ve shut down a large part of the domestic economy to fight the COVID battle. As a consequence, many are feeling extremely frustrated about the approach taken in NSW plus of course the difficulty in understanding + accessing support packages. That’s the feedback I’ve been getting from business owners in the last 24 hours and its clearly this growing frustration that has prompted Gladys to put a vaccination target of 62% of the State’s population to be vaccinated before these sorts of lockdowns will become a thing of the past.
Resilience is the first word that springs to mind to describe this weeks performance by the ASX with the index edging ~1% higher despite lockdowns for 50% of the Australian population. We’ve clearly got confidence in our ability to overcome this set back and/or the ability for Governments to underwrite the economic impacts.
A weaker session today with all market sectors lower bar materials & utilities, the former mainly supported by a good move in Gold which has broken out through the $US1800 handle to be trading at $US1831 at our close while the latter was a result of the takeover launched for Spark Infrastructure (SKI). The move in gold talks to the risk off mentality that was seen today as Melbourne is tipped to be entering lockdown. With the two main economic engines of the Aussie economy likely to be in lockdown the market gave back all of the early gains and some to close marginally lower.
A choppy session for Aussie stocks today with most focus on the Buy Now Pay Later (BNPL) sector that was hit on the back of news that Apple (AAPL US) was entering the fray, most players in the sector off ~10%. That weighed on the IT sector which fell 2.7% however that was pretty much entirely related to the BNPL companies while tech generally was positive while the Utilities was a standout up more than 3%.
The market saw a strong open up ~50 points early on however sellers got the upper hand and stocks simply drifted lower all day before a big Market on Close (MOC) order hit which knocked 16 points from the market in the match alone. The broader industrials & utilities best on ground today however no sector added more than 1%, while the Real-Estate stocks experienced some mean reversion after yesterday’s strong performance.
A risk on session to start the week with another 112 cases of COVID in NSW failing to dent sentiment early on. The market opened higher and did a good job of maintaining strength throughout the session. The resource stocks bounced back strongly, BHP up through $51 a standout and when the bulk of the sector rallies ~3% and banks also edge higher it’s hard for the market to do anything but rally.
A softer session to end the week for the ASX as ‘reflation wobbles’ hit the market to send stocks lower. Global growth expectations have taken a hit in the last 24 hours and as we suggested this morning, that’s being shown clearly through a decline in longer dated bond yields globally – a wobble rather than a change in trend in MM’s view. 154 stocks from the ASX 200 closed lower today with all sectors bar Energy finishing in the red
A fairly muted session above the waterline today however lots happening beneath the surface headlined by a rally in Zip Co (Z1P) on reports in the AFR of a strategic buyer taking a 4% / ~$160m stake - more on that below while downtrodden Nuix (NXL) also saw some love with shares rallying today, albeit from very depressed levels.
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