A brutal day across markets, the worst since 2020, with the ASX200 whacked 3.7%, Small Caps hit 4.5%, Japanese stocks down over 10%, with 99% of the main board in Australia closing lower (i.e. 2 stocks out of 200 finished up)! Our market started on the back foot but as Asian markets struggled and US Futures continued lower (Nasdaq Futures down 5.5% at our close), there was no reason to stand in front of the momentum – the index closing only ~15 points above its nadir. This is a headline-grabbing day, and taken in isolation, it’s a big move by the market, however, the magnitude is at least partially a product of just how strong the market has been, hitting a new record high at 8148 only 3-sessions ago.
A tough session for equities to end the week and after twice making new all-time highs the ASX200 finds itself up just +0.25% for the week, well under the psychical 8000 level after testing 8150 on Thursday morning. A heavy fall on Wall Street set the tone and as recession fears escalated after weak US economic data tipped the scales away from the heavily embraced "Goldilocks" view.
A positive session for the ASX, though the best of it was seen early keying off a great move yesterday and positive flows in the US overnight, as the markets has quickly priced in the prospect of a rate cut in Australian this year, but probably more important, no further rate hikes. UBS changed their forecast this morning from a hike in August to no change, while Futures are now pricing a 63% chance of a cut before Santa arrives. In the US overnight, the Fed pretty much confirmed a September cut. In July the Fed said they needed to be more confident inflation was on the right track, overnight they said they ‘had’ more confidence that inflation was on the right track, laying the foundation for a move.
The ASX surged higher, bonds rallied (yields lower), the AUD fell and the RBA breathed a huge sigh of relief with inflation data coming in cooler than expected today, taking rates hikes off the table, and bringing back the probability of cuts this side of Christmas. Rate-sensitive stocks soared, though the buying was broad-based based with over XX% of the main board finishing in the black.
The market was lower today, though it recovered nearly 60 points from the lows so showed some backbone into weakness, with consumer discretionary stocks following their US peers higher, while Financials remained well supported.
The ASX 200 is back testing the 8000 level with broad-based gains to kick off an important week. Local inflation data out on Wednesday the headline act, while Q2 earnings in the US increase and local reporting season slowly builds steam.
A solid session to end a tough week for stocks, though as we near the end of the July the ASX remains higher for the month, up nearly 2%, with a bullish start tapering off as large cap technology stocks experience recent momentum unwinding as the expectations around interest rates permeate through markets. US rates are about to come down, which has underpinned a reversal of recent themes with more economically exposed sectors and smaller companies starting to outperform the narrow cohort of technology stocks that have underpinned the markets performance over the past year. Trends are clearly changing, which creates some short term instability, however ultimately, this is positive for the broader health of the market, the ASX today breaking back up through 7900 as we work on creating a new trading range into August.
A tough day at the office with the ASX getting hit hard right across the board, with corporate updates mostly on the softer side. All 11 sectors finished lower with 82% of the main board in the red implying there were very few places to hide, with the market closing smack on its lows.
While the market ultimately ended down a touch, there was some interesting price action intra-day in certain sectors, with the retailers well bid early on only to give up gains, Gold stocks rallied defying a recent pullback in bullion, while many of the miners recovered nicely from early weakness i.e. some signs playing out that recent trends may be approaching an inflexion point.
A tough session for equities to end the week and after twice making new all-time highs the ASX200 finds itself up just +0.25% for the week, well under the psychical 8000 level after testing 8150 on Thursday morning. A heavy fall on Wall Street set the tone and as recession fears escalated after weak US economic data tipped the scales away from the heavily embraced "Goldilocks" view.
A positive session for the ASX, though the best of it was seen early keying off a great move yesterday and positive flows in the US overnight, as the markets has quickly priced in the prospect of a rate cut in Australian this year, but probably more important, no further rate hikes. UBS changed their forecast this morning from a hike in August to no change, while Futures are now pricing a 63% chance of a cut before Santa arrives. In the US overnight, the Fed pretty much confirmed a September cut. In July the Fed said they needed to be more confident inflation was on the right track, overnight they said they ‘had’ more confidence that inflation was on the right track, laying the foundation for a move.
The ASX surged higher, bonds rallied (yields lower), the AUD fell and the RBA breathed a huge sigh of relief with inflation data coming in cooler than expected today, taking rates hikes off the table, and bringing back the probability of cuts this side of Christmas. Rate-sensitive stocks soared, though the buying was broad-based based with over XX% of the main board finishing in the black.
The market was lower today, though it recovered nearly 60 points from the lows so showed some backbone into weakness, with consumer discretionary stocks following their US peers higher, while Financials remained well supported.
The ASX 200 is back testing the 8000 level with broad-based gains to kick off an important week. Local inflation data out on Wednesday the headline act, while Q2 earnings in the US increase and local reporting season slowly builds steam.
A solid session to end a tough week for stocks, though as we near the end of the July the ASX remains higher for the month, up nearly 2%, with a bullish start tapering off as large cap technology stocks experience recent momentum unwinding as the expectations around interest rates permeate through markets. US rates are about to come down, which has underpinned a reversal of recent themes with more economically exposed sectors and smaller companies starting to outperform the narrow cohort of technology stocks that have underpinned the markets performance over the past year. Trends are clearly changing, which creates some short term instability, however ultimately, this is positive for the broader health of the market, the ASX today breaking back up through 7900 as we work on creating a new trading range into August.
A tough day at the office with the ASX getting hit hard right across the board, with corporate updates mostly on the softer side. All 11 sectors finished lower with 82% of the main board in the red implying there were very few places to hide, with the market closing smack on its lows.
While the market ultimately ended down a touch, there was some interesting price action intra-day in certain sectors, with the retailers well bid early on only to give up gains, Gold stocks rallied defying a recent pullback in bullion, while many of the miners recovered nicely from early weakness i.e. some signs playing out that recent trends may be approaching an inflexion point.
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