An interesting session today coming off a volatile last hour in the US where markets surged higher and then gave back all of their gains following the Fed Decision on interest rates. Traders were looking for a big move either way, so derivatives had been piled on, the most in around a year, however, Jerome Powell ‘threaded the needle’ and did a good job of articulating the Fed stance, which is rates may remain higher for longer, but they’re unlikely to go up. The ASX opened marginally higher this morning, rallied then pulled back late as US Futures made gains during our time zone.
The local market wasn’t immune to the equity rout in the US overnight, all sectors closing lower today to give back all the gains that started this week. There was some effort to support the ASX intraday, staging a ~40pt rally from early lows to early afternoon, however, the risk-off trend picked back up into the afternoon as trades took exposure off ahead of the Fed interest rate decision due out tomorrow morning our time.
A positive session to end a tough month for markets with the ASX dipping 2.95% during April, offsetting much of the strong move in March. That said, the ASX 200 remains only 3% below its all-time high despite some significant changes from a macro perspective during the month as inflation remains ‘stickier’. At Market Matters, we’ve remained bullish equities and we continue to believe that’s the right medium-term approach, albeit in a three-step forward, two-back sort of trend.
A very strong bounce-back from the ASX today, particularly in the rate-sensitive sectors that were hit hard last week on changing interest rate expectations; Real-Estate and IT in particular having a day in the sun, although more than 90% of the market closed higher, recouping nearly half of Fridays aggressive sell-off.
The local market dropped ~100 points on the open, failing to see any reprieve following two weaker sessions out in the US since our close on Wednesday. After dropping back below 7600 the index traded in a reasonably tight 30-point range for the rest of the session, failing to join in on the rally across the region and what’s showing on the US Futures ahead of their Friday session. BHP managed to take 31pts off the market alone today, weakness coming after they lobbed an all scrip bid for Anglo American (AAL LN). Despite the soggy end to the week, the ASX200 finished marginally higher, +8pts / +0.11%.
Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.
Investors continued the 180-degree about-face from last week's sentiment, happy to take on risk for the second consecutive day to start this week seeing the ASX200 through a 200pt gain from Friday’s panic lows early in today’s session. Tech was the standout as US 2yr yields retreated (marginally) from the spike above 5% last week while Healthcare and Financials also joined in the rebound. Energy and Gold were the main areas finding it tough again today, for the same geopolitical reasons as Monday’s session.
Equity markets seemed to forget last week’s struggles, starting the week on the front foot. The best was seen early, at one stage the ASX200 was up more than 110 points before giving back some of the gains. The small cap index held on though and closed on the day’s high today. Improving headlines out of the Middle East was the main driver of the risk on attitude, though this worked against Gold and Energy today. The banks also found another naysayer as Citi moved negative on all of the Big 4, though ANZ was the only one to close lower.
Shares tracked pre-market futures lower early in our session before headlines of a further escalation in the Middle Eastern conflict caused another wave of selling took the market to 2 month lows. Energy found support with oil cracking $US90/bbl again which was also a concern for those positioned for inflation to roll off. Until midday, traders had no interest in taking risk in today’s session but the afternoon painted a different picture. The ASX closed well off the intraday lows with many sectors rallying more than 0.5% between midday and the end of trade. Despite the Friday afternoon fight, the local market had its worst week since September, falling -220pts / -2.83%.
The local market shook off weakness in the US overnight to open higher, largely thanks to our Resources exposure that continues to find some support following trade sanctions on both China and Russia. Late morning saw local employment data land with the mixed numbers largely disregarded by the market. Buying picked up in the early afternoon as yields started to roll off, though equities couldn’t go on with the move, ultimately though the 5-day losing streak for the ASX was snapped with a ~0.5% gain today.
The local market wasn’t immune to the equity rout in the US overnight, all sectors closing lower today to give back all the gains that started this week. There was some effort to support the ASX intraday, staging a ~40pt rally from early lows to early afternoon, however, the risk-off trend picked back up into the afternoon as trades took exposure off ahead of the Fed interest rate decision due out tomorrow morning our time.
A positive session to end a tough month for markets with the ASX dipping 2.95% during April, offsetting much of the strong move in March. That said, the ASX 200 remains only 3% below its all-time high despite some significant changes from a macro perspective during the month as inflation remains ‘stickier’. At Market Matters, we’ve remained bullish equities and we continue to believe that’s the right medium-term approach, albeit in a three-step forward, two-back sort of trend.
A very strong bounce-back from the ASX today, particularly in the rate-sensitive sectors that were hit hard last week on changing interest rate expectations; Real-Estate and IT in particular having a day in the sun, although more than 90% of the market closed higher, recouping nearly half of Fridays aggressive sell-off.
The local market dropped ~100 points on the open, failing to see any reprieve following two weaker sessions out in the US since our close on Wednesday. After dropping back below 7600 the index traded in a reasonably tight 30-point range for the rest of the session, failing to join in on the rally across the region and what’s showing on the US Futures ahead of their Friday session. BHP managed to take 31pts off the market alone today, weakness coming after they lobbed an all scrip bid for Anglo American (AAL LN). Despite the soggy end to the week, the ASX200 finished marginally higher, +8pts / +0.11%.
Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.
Investors continued the 180-degree about-face from last week's sentiment, happy to take on risk for the second consecutive day to start this week seeing the ASX200 through a 200pt gain from Friday’s panic lows early in today’s session. Tech was the standout as US 2yr yields retreated (marginally) from the spike above 5% last week while Healthcare and Financials also joined in the rebound. Energy and Gold were the main areas finding it tough again today, for the same geopolitical reasons as Monday’s session.
Equity markets seemed to forget last week’s struggles, starting the week on the front foot. The best was seen early, at one stage the ASX200 was up more than 110 points before giving back some of the gains. The small cap index held on though and closed on the day’s high today. Improving headlines out of the Middle East was the main driver of the risk on attitude, though this worked against Gold and Energy today. The banks also found another naysayer as Citi moved negative on all of the Big 4, though ANZ was the only one to close lower.
Shares tracked pre-market futures lower early in our session before headlines of a further escalation in the Middle Eastern conflict caused another wave of selling took the market to 2 month lows. Energy found support with oil cracking $US90/bbl again which was also a concern for those positioned for inflation to roll off. Until midday, traders had no interest in taking risk in today’s session but the afternoon painted a different picture. The ASX closed well off the intraday lows with many sectors rallying more than 0.5% between midday and the end of trade. Despite the Friday afternoon fight, the local market had its worst week since September, falling -220pts / -2.83%.
The local market shook off weakness in the US overnight to open higher, largely thanks to our Resources exposure that continues to find some support following trade sanctions on both China and Russia. Late morning saw local employment data land with the mixed numbers largely disregarded by the market. Buying picked up in the early afternoon as yields started to roll off, though equities couldn’t go on with the move, ultimately though the 5-day losing streak for the ASX was snapped with a ~0.5% gain today.
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