The ASX200 traded below the 7000 level this morning for the first time since March as the risk-off trade continued after the Hawkish update from the Fed yesterday, but a huge intra-day turnaround took hold and the ASX200 ultimately finished marginally higher, rallying 111pts from the morning lows which was simply a phenomenal effort! The intra-day buying helped snap a 4-day losing streak, though the index fell by -210pts/-2.89%.
The ASX was knocked today, following Asian markets deep into the red after the US Federal Reserve held rates unchanged overnight, but kept the door ajar for another hike this side of Christmas. While there wasn’t a lot of new news coming from Jerome Powell and co, the dot plot projections implied that rates are unlikely to be cut by as much as previously thought during 2024, and that has rattled markets.
Shares extended their slide to three consecutive days following US markets lower in preparation for tonight’s FOMC meeting. Commodity-linked sectors of Energy and Materials saw the most pain today while a slight lift in local bond yields also weighed on Tech and Real Estate. Consumer sectors were surprisingly well supported though, as were Industrials as today’s weakness was not as broad-based as recent days – 40% of the ASX200 managed to close higher despite the index weakness.
The ASX is in a holding pattern it seems ahead of a barrage of Central Bank activity headlined by the US Federal Reserve (Wednesday), the Bank of England (Thursday) before Bank of Japan Governor Kazuo Ueda steps up to the plate on Friday. That saw the ASX open on the back foot this morning and there was no reason to bid up stocks ahead of what are very important decisions on interest rates that will likely have a major impact on how markets trade into the back end of the year.
Friday’s rally seems a distant memory with the ASX coming back to earth with a thud, giving back around half the gains made in the prior session as IT stocks keyed off weakness in the US courtesy of higher Treasury yields to lead todays weakness.
The stars aligned for a strong finish to the week, and the ASX delivered with its best one-day rally in more than 8 weeks today. All sectors were higher today, led by a resurgent materials sector thanks to strong commodity prices. It was a very broad-based rally today with 80% of the ASX200 finishing higher with money keen to pile into the market. The index posted a gain of 122pts/+1.71% this week, recouping the losses of last week.
After a muted open, shares were well supported on the local index today. It seems buyers held back yesterday with the US Inflation data last night, but once that print had passed, it was mostly a one-way street higher. Resources were the main contributors, helped by a strong iron ore price which continues to defy the bears. Banks were also well supported, particularly following strong local jobs data.
The market was on edge today ahead of the US inflation read tonight which is expected to show headline CPI of 3.6% for August, up from 3.2% in July due to higher energy prices, testing the narrative that inflation has peaked and so too have interest rates. So, some risk off today throughout Asia while US Futures offered little in the way of support.
A similar trend to yesterday played out today where weakness in the morning attracted buyers, the ASX200 finishing +50pts up from the session lows to end higher ahead of key US Inflation data due out Wednesday.
A soft opening by the ASX this morning before data from China that showed recent stimulus is increasing liquidity across their struggling economy prompted buying and the index rallied +58 points from the 11 a.m. low of 7134, to close on the session highs, which is a bullish sign.
The ASX was knocked today, following Asian markets deep into the red after the US Federal Reserve held rates unchanged overnight, but kept the door ajar for another hike this side of Christmas. While there wasn’t a lot of new news coming from Jerome Powell and co, the dot plot projections implied that rates are unlikely to be cut by as much as previously thought during 2024, and that has rattled markets.
Shares extended their slide to three consecutive days following US markets lower in preparation for tonight’s FOMC meeting. Commodity-linked sectors of Energy and Materials saw the most pain today while a slight lift in local bond yields also weighed on Tech and Real Estate. Consumer sectors were surprisingly well supported though, as were Industrials as today’s weakness was not as broad-based as recent days – 40% of the ASX200 managed to close higher despite the index weakness.
The ASX is in a holding pattern it seems ahead of a barrage of Central Bank activity headlined by the US Federal Reserve (Wednesday), the Bank of England (Thursday) before Bank of Japan Governor Kazuo Ueda steps up to the plate on Friday. That saw the ASX open on the back foot this morning and there was no reason to bid up stocks ahead of what are very important decisions on interest rates that will likely have a major impact on how markets trade into the back end of the year.
Friday’s rally seems a distant memory with the ASX coming back to earth with a thud, giving back around half the gains made in the prior session as IT stocks keyed off weakness in the US courtesy of higher Treasury yields to lead todays weakness.
The stars aligned for a strong finish to the week, and the ASX delivered with its best one-day rally in more than 8 weeks today. All sectors were higher today, led by a resurgent materials sector thanks to strong commodity prices. It was a very broad-based rally today with 80% of the ASX200 finishing higher with money keen to pile into the market. The index posted a gain of 122pts/+1.71% this week, recouping the losses of last week.
After a muted open, shares were well supported on the local index today. It seems buyers held back yesterday with the US Inflation data last night, but once that print had passed, it was mostly a one-way street higher. Resources were the main contributors, helped by a strong iron ore price which continues to defy the bears. Banks were also well supported, particularly following strong local jobs data.
The market was on edge today ahead of the US inflation read tonight which is expected to show headline CPI of 3.6% for August, up from 3.2% in July due to higher energy prices, testing the narrative that inflation has peaked and so too have interest rates. So, some risk off today throughout Asia while US Futures offered little in the way of support.
A similar trend to yesterday played out today where weakness in the morning attracted buyers, the ASX200 finishing +50pts up from the session lows to end higher ahead of key US Inflation data due out Wednesday.
A soft opening by the ASX this morning before data from China that showed recent stimulus is increasing liquidity across their struggling economy prompted buying and the index rallied +58 points from the 11 a.m. low of 7134, to close on the session highs, which is a bullish sign.
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