A tough session for the ASX today with a confluence of factors combining to hit Property, Financials and Retailers fairly hard. Signs that consumers are starting to feel the pinch of higher rates was the common theme, with both CBA and Judo highlighting an uptick in arrears on the same day that several retailers flagged softer sales.
The market was strongest early before tapering off throughout the day, a late spurt putting the ASX200 in the green (just) on a day dominated by company-specific news flow, generally coming out of the very popular Macquarie conference.
The local market enjoyed the best session in 3 months today with a broad-based rally for much of the day turning into overdrive following a more ‘dovish’ than expected RBA which had interest rates on hold this afternoon. The gain of more than 100 points is even more impressive given NAB went ex-dividend today, the bank falling 52c vs 84c dividend, managing to hold onto more than just the attached franking credits.
A strong start to the 2nd week of May as softer US employment data on Friday allayed some concerns around sticky inflation and higher interest rates. As bond yields pulled back, equities got some clear air to rally buoyed by US quarterly earnings that are coming in stronger than expected. i.e. the Goldilocks scenario remains in play.
A solid session to end a choppy but overall positive week for stocks with some big moves playing out across the market. The rate-sensitive sectors in Real-Estate & Property were the main winners for the week showing strong reversion from last week's move. This ongoing uncertainty around interest rates is clearly having a big influence, however, if MM is correct, the next move in rates will be down which will be supportive of equities overall, hence we’ve maintained our bullish bias towards stocks.
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%.
The market was strongest early before tapering off throughout the day, a late spurt putting the ASX200 in the green (just) on a day dominated by company-specific news flow, generally coming out of the very popular Macquarie conference.
The local market enjoyed the best session in 3 months today with a broad-based rally for much of the day turning into overdrive following a more ‘dovish’ than expected RBA which had interest rates on hold this afternoon. The gain of more than 100 points is even more impressive given NAB went ex-dividend today, the bank falling 52c vs 84c dividend, managing to hold onto more than just the attached franking credits.
A strong start to the 2nd week of May as softer US employment data on Friday allayed some concerns around sticky inflation and higher interest rates. As bond yields pulled back, equities got some clear air to rally buoyed by US quarterly earnings that are coming in stronger than expected. i.e. the Goldilocks scenario remains in play.
A solid session to end a choppy but overall positive week for stocks with some big moves playing out across the market. The rate-sensitive sectors in Real-Estate & Property were the main winners for the week showing strong reversion from last week's move. This ongoing uncertainty around interest rates is clearly having a big influence, however, if MM is correct, the next move in rates will be down which will be supportive of equities overall, hence we’ve maintained our bullish bias towards stocks.
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%.
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