A solid session to kick off the shortened trading week ahead of the Easter long weekend, with Property & Energy stocks underpinning the strength throughout the day, with the ASX 200 closing back above 7800, once again, knocking on the door of new highs. It’s hard to argue with the prevailing strength, and while some are now highlighting overvaluation at the index level, we don’t think that’s the right call given the soft landing that’s playing out from an economic perspective. With the ASX 200 on 16.8x Est earnings that are growing ~5%, it’s certainly not cheap but equally, it’s not overly stretched when we consider that analysts have underappreciated the recovery in earnings that is underway, both here and in the US.
Today saw a softer end to a positive week for equities, a typical sort of Friday following a good run in the market; US stocks made new highs overnight while the ASX threatened our own milestone, in a week heavy with Central Bank rhetoric. Wednesday also saw the 4th anniversary of the COVID low in markets, the ASX 200 hitting 4402 on a Friday morning that we still remember vividly, and while we’re all still feeling some impact, the ASX is now up an impressive 75% in that time
A volatile session for the ASX today, however, the bullish vibe overcame better-than-expected employment data and a slight rejig to expectations around rate cuts to push stocks sharply higher, only one good day away from following US stocks to new highs.
The best of it was seen early on today with a bullish start tapering off throughout the session ahead of the US Federal Reserve’s decision on Interest rates tomorrow morning our time. The index fell 45pts from high to low, largely tracking US Futures which were sold off throughout the session. Energy was one of the few highlights, alongside Telcos which have been choppy of late. Tech was the main drag.
While they’re still saying otherwise, the RBA is looking increasingly poised to cut rates in the coming months as inflation comes back into range and labour market pressures ease. Markets are pre-empting the move, the Aussie Dollar down (65.31c), bond yields down, and equities up as we edge closer to D-Day for Michelle Bullock et al. However, at a sector level today, Materials & Energy stocks bounced nicely and Iron Ore rallied ~5% in Asia, implying some improving confidence around the outlook for the Middle Kingdom, we’re certainly positioned for it!
A quiet start to the trading week ahead of important Central Bank meetings - the RBA is set to decide on rates tomorrow (no change expected) while the US Fed step up on Thursday, again, no change expected however the rhetoric and associated economic projections will be influential on markets. As it stands, markets are pricing on 3 cuts in the US and 1.6 cuts locally this side of Christmas, which seems on the money from MM’s perspective. i.e. markets and central banks now seem aligned.
The market was hit particularly hard early on today, down ~120 points at the 11.30am low before buyers of the dip came roaring in, cutting those losses by 2/3rds with a very strong afternoon session into an index re-weight at the close.
The local market started higher however it wasn’t long before the pressure coming from the Financials sector took the market into the red for the session. Macquarie moving negative on its Big 4 peers saw the space take ~35pts off the ASX200 today. The Resources sector did a lot of heavy lifting in an effort to offset the banks, it appears money was rotating through the market today rather than outright selling of the banks.
A choppy but mildly positive session with exactly half the stocks in the ASX 200 up, while half fell, the retailers attracted some buying into recent weakness while the material stocks remained on the nose despite a recent bounce in Chinese equities- BHP is back testing the bottom of its trading range ~$42.
A far more stable session today after yesterday’s fireworks, the local market looked to recoup some of the pain of Monday’s trade early on. The bounce didn’t last long though, up +32pts/+0.4% at its best early only on close just marginally higher – much of the headwind came from BHP which hit its lowest level since May last year.
Today saw a softer end to a positive week for equities, a typical sort of Friday following a good run in the market; US stocks made new highs overnight while the ASX threatened our own milestone, in a week heavy with Central Bank rhetoric. Wednesday also saw the 4th anniversary of the COVID low in markets, the ASX 200 hitting 4402 on a Friday morning that we still remember vividly, and while we’re all still feeling some impact, the ASX is now up an impressive 75% in that time
A volatile session for the ASX today, however, the bullish vibe overcame better-than-expected employment data and a slight rejig to expectations around rate cuts to push stocks sharply higher, only one good day away from following US stocks to new highs.
The best of it was seen early on today with a bullish start tapering off throughout the session ahead of the US Federal Reserve’s decision on Interest rates tomorrow morning our time. The index fell 45pts from high to low, largely tracking US Futures which were sold off throughout the session. Energy was one of the few highlights, alongside Telcos which have been choppy of late. Tech was the main drag.
While they’re still saying otherwise, the RBA is looking increasingly poised to cut rates in the coming months as inflation comes back into range and labour market pressures ease. Markets are pre-empting the move, the Aussie Dollar down (65.31c), bond yields down, and equities up as we edge closer to D-Day for Michelle Bullock et al. However, at a sector level today, Materials & Energy stocks bounced nicely and Iron Ore rallied ~5% in Asia, implying some improving confidence around the outlook for the Middle Kingdom, we’re certainly positioned for it!
A quiet start to the trading week ahead of important Central Bank meetings - the RBA is set to decide on rates tomorrow (no change expected) while the US Fed step up on Thursday, again, no change expected however the rhetoric and associated economic projections will be influential on markets. As it stands, markets are pricing on 3 cuts in the US and 1.6 cuts locally this side of Christmas, which seems on the money from MM’s perspective. i.e. markets and central banks now seem aligned.
The market was hit particularly hard early on today, down ~120 points at the 11.30am low before buyers of the dip came roaring in, cutting those losses by 2/3rds with a very strong afternoon session into an index re-weight at the close.
The local market started higher however it wasn’t long before the pressure coming from the Financials sector took the market into the red for the session. Macquarie moving negative on its Big 4 peers saw the space take ~35pts off the ASX200 today. The Resources sector did a lot of heavy lifting in an effort to offset the banks, it appears money was rotating through the market today rather than outright selling of the banks.
A choppy but mildly positive session with exactly half the stocks in the ASX 200 up, while half fell, the retailers attracted some buying into recent weakness while the material stocks remained on the nose despite a recent bounce in Chinese equities- BHP is back testing the bottom of its trading range ~$42.
A far more stable session today after yesterday’s fireworks, the local market looked to recoup some of the pain of Monday’s trade early on. The bounce didn’t last long though, up +32pts/+0.4% at its best early only on close just marginally higher – much of the headwind came from BHP which hit its lowest level since May last year.
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