A choppy but position session overall for the ASX, with a very bullish open (market up ~90pts at the highs), before a hotter than expected read on local employment sent bond yields higher (3’s up 5bps to 3.8%), the AUD was bought (+0.4% to 66.91c) while equities were sold as the timing of rate cuts got pushed further out into the Never Never…the market now pricing only a 20% chance of a cut this side of Christmas with the first full 25bps cut now not priced in until April 25.
The ASX pulled back from all-time highs today, and despite a decent session from the financials, all other sectors finished lower, with most of the selling coming late in the day.
New all-time highs for the ASX today, breaking out above 8300 for the first time as money found it's way back into the banks while the resources remained pretty well supported - 80% of the main board finished higher. The breakout feels almost lethargic, which is not a bad thing, with stocks grinding to new highs as opposed to exploding towards them on a news-driven event that could quickly dissipate i.e. the market feels like it has sustainable legs here.
The widely expected sell-off in China facing equities failed the materialise today, with resource stocks and others actually rallying, latching onto the belief that China has signalled its intentions of support, even if they haven’t articulated the finer details or provided specific guidance on the size of stimulus.
A quiet session to round out a solid week for the ASX (+0.8%) as we await more news from China around fiscal policy, to complement the monetary policy support already in play. The stage has been set for tomorrow morning, and whatever happens, it will have a bearing on how markets and some sectors in particular trade into year end. Over to you, My Fo’an!
Similar to yesterday, the index felt tired even though it made reasonable gains overall driven by a resurgent material sector as another policy update from China looms.
The ASX felt tired today, having pushed up ~50 points early on, the optimism was lost when China came online at 12.30pm and fell ~4% dragging down resources stocks that dominated the detractors, with BHP now ~6% from its highs last week as investors fret over a lack of detail on China’s stimulus plans.
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 ASX pulled back from all-time highs today, and despite a decent session from the financials, all other sectors finished lower, with most of the selling coming late in the day.
New all-time highs for the ASX today, breaking out above 8300 for the first time as money found it's way back into the banks while the resources remained pretty well supported - 80% of the main board finished higher. The breakout feels almost lethargic, which is not a bad thing, with stocks grinding to new highs as opposed to exploding towards them on a news-driven event that could quickly dissipate i.e. the market feels like it has sustainable legs here.
The widely expected sell-off in China facing equities failed the materialise today, with resource stocks and others actually rallying, latching onto the belief that China has signalled its intentions of support, even if they haven’t articulated the finer details or provided specific guidance on the size of stimulus.
A quiet session to round out a solid week for the ASX (+0.8%) as we await more news from China around fiscal policy, to complement the monetary policy support already in play. The stage has been set for tomorrow morning, and whatever happens, it will have a bearing on how markets and some sectors in particular trade into year end. Over to you, My Fo’an!
Similar to yesterday, the index felt tired even though it made reasonable gains overall driven by a resurgent material sector as another policy update from China looms.
The ASX felt tired today, having pushed up ~50 points early on, the optimism was lost when China came online at 12.30pm and fell ~4% dragging down resources stocks that dominated the detractors, with BHP now ~6% from its highs last week as investors fret over a lack of detail on China’s stimulus plans.
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.
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