The ASX200 pushed towards 8100 today, extending July's gains to 3.8% - so far, trumping July's average advance of the last decade by 0.8%. While it was a strong session, some selling became obvious late in the day and it wouldn’t surprise MM to see some consolidation play out from here, after a fantastic run.
A day of consolidation for the ASX with the market getting used to the ‘8 handle’, as recent trends extended i.e. Property up ~1% and resources down ~1% with the hangover of weaker Chinese growth lingering over the sector.
The market smashed through 8000 this morning on a clear breakout of its nearly 6-month-long trading range, hitting an early high of 8037, before tapering off into the back end of the session following softer Chinese GDP. All 11 sectors were higher, though most buying was targeted in the large caps with the Small Ords finishing flat.
The market broke to new all-time highs today, and held them, underpinned by broad-based strength with 85% of the ASX 200 ending the session higher, though there was an obvious change to market leadership, with property and consumer discretionary i.e. interest rates sensitive sectors leading the line, while small caps outperformed large.
The ASX is back-testing highs with a short foray above 7900 this morning before we ticked back below the milestone by the close. Still, it was a very positive session for local stocks, keying off a more broad-based rally in US overnight i.e. it wasn’t just the mega-cap tech stocks that moved, the often neglected US Material sector was No2 for the session driven by strong moves in Uranium shares, while the small caps (Russell 2000) kept pace with the larger caps ahead of quarterly earnings that is expected to show US earnings growth spreading across a more diverse group.
A weak open this morning saw the ASX down over 50pts at the low, though a consistent recovery for the remainder of the day saw the market only mildly down by the close, an eclectic mix of stocks scattering the leaderboard. What has been consistent is the underperformance of some commodities, going against the improving trends that played out last week, though Gold remains the exception.
When volumes are low, intra-day moves tend to persist in the direction they start given the majority of institutional trading now is done over the day with a greater proportion of the volume completed on the close i.e. in the ‘Match Out’. Yesterday’s price action was down, today was up, but the consistency in the trends were very similar. All 11 ASX sectors locally finished higher mirroring a positive move in Asia, the banks adding the most from an index perspective while Telstra (TLS) also chimed in, with the Telco now up 10% since the start of June.
The choppy price action locally continued today, with the market giving back last weeks gains as low school holiday volumes take hold. While we believe the market will break out of its trading range at some point, for now, the range is being respected which requires a more neutral stance.
A bit of a nothing end to the week with the ASX down mildly as we await key employment data from the US tonight, and digest the Labour Party win in the UK, ahead of the 2nd round of French elections this weekend. After a shaky start to FY25, we got our mojo back midweek to chalk up a reasonable gain, underpinned by good moves from Energy & Resources.
A day of consolidation for the ASX with the market getting used to the ‘8 handle’, as recent trends extended i.e. Property up ~1% and resources down ~1% with the hangover of weaker Chinese growth lingering over the sector.
The market smashed through 8000 this morning on a clear breakout of its nearly 6-month-long trading range, hitting an early high of 8037, before tapering off into the back end of the session following softer Chinese GDP. All 11 sectors were higher, though most buying was targeted in the large caps with the Small Ords finishing flat.
The market broke to new all-time highs today, and held them, underpinned by broad-based strength with 85% of the ASX 200 ending the session higher, though there was an obvious change to market leadership, with property and consumer discretionary i.e. interest rates sensitive sectors leading the line, while small caps outperformed large.
The ASX is back-testing highs with a short foray above 7900 this morning before we ticked back below the milestone by the close. Still, it was a very positive session for local stocks, keying off a more broad-based rally in US overnight i.e. it wasn’t just the mega-cap tech stocks that moved, the often neglected US Material sector was No2 for the session driven by strong moves in Uranium shares, while the small caps (Russell 2000) kept pace with the larger caps ahead of quarterly earnings that is expected to show US earnings growth spreading across a more diverse group.
A weak open this morning saw the ASX down over 50pts at the low, though a consistent recovery for the remainder of the day saw the market only mildly down by the close, an eclectic mix of stocks scattering the leaderboard. What has been consistent is the underperformance of some commodities, going against the improving trends that played out last week, though Gold remains the exception.
When volumes are low, intra-day moves tend to persist in the direction they start given the majority of institutional trading now is done over the day with a greater proportion of the volume completed on the close i.e. in the ‘Match Out’. Yesterday’s price action was down, today was up, but the consistency in the trends were very similar. All 11 ASX sectors locally finished higher mirroring a positive move in Asia, the banks adding the most from an index perspective while Telstra (TLS) also chimed in, with the Telco now up 10% since the start of June.
The choppy price action locally continued today, with the market giving back last weeks gains as low school holiday volumes take hold. While we believe the market will break out of its trading range at some point, for now, the range is being respected which requires a more neutral stance.
A bit of a nothing end to the week with the ASX down mildly as we await key employment data from the US tonight, and digest the Labour Party win in the UK, ahead of the 2nd round of French elections this weekend. After a shaky start to FY25, we got our mojo back midweek to chalk up a reasonable gain, underpinned by good moves from Energy & Resources.
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