A choppy session for local stocks, keying off Asian-inspired volatility as China came back online post their Golden Week holiday. China shares were +10% on open before losing more than 50% of the gains while Hong Kong shares fell ~6% by our close, having been open for the past week.
Another fascinating week comes to a close ahead of a much-needed long weekend. Energy stocks have been the big winners this week, with oil stocks adding to gains today after Joe Biden said Israel and the US were “discussing” a strike on Iranian oil facilities.
Another quiet session for local stocks as they consolidate around ~8200 after a good run in September, and ahead of important US employment data due out on Friday. While expectations for aggressive US rate cuts helped investors look past recent weakness in the labour market, we now have 7-8 cuts already priced into the curve, meaning we expect markets to be more sensitive to any disappointing economic data, and Friday will be a test of that.
The majority of stocks ended lower today as concern around tensions in the Middle East weighed, though selling was only tepid and there were pockets of strength, largely from energy and resources stocks offset by weakness across Technology. A fairly lacklustre session, void of any real news, so a short note this afternoon!
With China off on Golden Week holiday, there was a void of any positive policy news from the region and with the start of a new quarter, it wasn’t surprising to see some weakness creep into the market, the index giving back the gain it put on yesterday with both the miners & banks attracting sellers.
A positive session to cap off a strong month for local equities underpinned by a policy pivot in China; the ASX200 rallied 3.24% inclusive of dividends, about 2x the return achieved by US stocks in $US terms, though when both are priced in AUD, the local outperformance was significant.
An extraordinary week comes to an end with significant divergence playing out across the market, the Material sector was up over 9% against the Financials that were down ~4.5%. We often say the market can’t go up without the banks, and a flat week at the index level supports that call, but geez, with a move like we saw in resources it went close to blowing that claim out of the water.
It’s not often we see the ASX up ~1% yet the banks finish lower on the session, but that was the case today and it speaks to how aggressive the move back into resources has become in the last few sessions following the PBOC’s intervention, and it seems there is more to come if Chinese state owned media is correct.
Weakness again at the index level largely due to bank selling, while the miners were top of the tree for a 2nd day running. Inflation is now back into the RBA’s 2-3% target, and while this was a monthly read only today, the trend is heading in the right direction having peaked at 8.4% in 2022. Inflation down, growth slowing, employment conditions softening, wage growth moderating, all point to lower interest rates, it's just a matter of when.
A mildly weaker day at the index level, though lots going on under the hood with a big rotation playing out causing a 6% price differential in the performance of CBA down -3% v BHP up +3% following a string of stimulus measures from Beijing.
Another fascinating week comes to a close ahead of a much-needed long weekend. Energy stocks have been the big winners this week, with oil stocks adding to gains today after Joe Biden said Israel and the US were “discussing” a strike on Iranian oil facilities.
Another quiet session for local stocks as they consolidate around ~8200 after a good run in September, and ahead of important US employment data due out on Friday. While expectations for aggressive US rate cuts helped investors look past recent weakness in the labour market, we now have 7-8 cuts already priced into the curve, meaning we expect markets to be more sensitive to any disappointing economic data, and Friday will be a test of that.
The majority of stocks ended lower today as concern around tensions in the Middle East weighed, though selling was only tepid and there were pockets of strength, largely from energy and resources stocks offset by weakness across Technology. A fairly lacklustre session, void of any real news, so a short note this afternoon!
With China off on Golden Week holiday, there was a void of any positive policy news from the region and with the start of a new quarter, it wasn’t surprising to see some weakness creep into the market, the index giving back the gain it put on yesterday with both the miners & banks attracting sellers.
A positive session to cap off a strong month for local equities underpinned by a policy pivot in China; the ASX200 rallied 3.24% inclusive of dividends, about 2x the return achieved by US stocks in $US terms, though when both are priced in AUD, the local outperformance was significant.
An extraordinary week comes to an end with significant divergence playing out across the market, the Material sector was up over 9% against the Financials that were down ~4.5%. We often say the market can’t go up without the banks, and a flat week at the index level supports that call, but geez, with a move like we saw in resources it went close to blowing that claim out of the water.
It’s not often we see the ASX up ~1% yet the banks finish lower on the session, but that was the case today and it speaks to how aggressive the move back into resources has become in the last few sessions following the PBOC’s intervention, and it seems there is more to come if Chinese state owned media is correct.
Weakness again at the index level largely due to bank selling, while the miners were top of the tree for a 2nd day running. Inflation is now back into the RBA’s 2-3% target, and while this was a monthly read only today, the trend is heading in the right direction having peaked at 8.4% in 2022. Inflation down, growth slowing, employment conditions softening, wage growth moderating, all point to lower interest rates, it's just a matter of when.
A mildly weaker day at the index level, though lots going on under the hood with a big rotation playing out causing a 6% price differential in the performance of CBA down -3% v BHP up +3% following a string of stimulus measures from Beijing.
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