The third consecutive session of pain for the local market, however, today’s move was felt across the region with Asian markets feeling the pinch. The index was down by more than 100pts late in the day before ticking up slightly on the close, though it wasn’t enough to stop the week from finishing at a new low for the last fortnight. Energy was a clear detractor to performance despite some weaker supply numbers out of the US tonight, instead, energy traders were focused on a slowing global economy while a surprise 50bps hike from the Bank of England overnight didn’t help with confidence.
A dose of reality today with some broad-based selling right across the market, as aggressive selling knocked the ASX back from seven-week highs, the recently hot IT sector in the cross-hairs however over 90% of the market finished in the red. Asian markets were down as well, but not by as much while US Futures remained resilient, only trading marginally lower.
The market snapped its seven-day winning streak today with ~60% of the market closing lower, led by weakness in the Energy stocks which succumb to Crude Oil’s decline overnight, while the consumer discretionary sector was hit by a downgrade from UBS. The afternoon session saw the most action as the market slid sharply lower into the close chalking up a bearish close.
A surprisingly positive session for the ASX today, courtesy of the RBA minutes that showed a July 0.25% rate hike in perhaps, not a fait accompli, with the RBA still more data dependent than the market had given it credit for. Bond yields fell after the 11.30 am release, and so too did the Australian dollar and that put a bid tone under the market which built on its impressive 6-day advance now totalling ~220pts/3%, chalking up a 7-week high in the process
A rebound in the Banks and Healthcare stocks underpinned a solid start to the week with the ASX treading its own path today ahead of a public holiday (no trade) in the US tonight. Resources have been on fire so far this month, with the Material Index +7% in June to date, however, we wouldn’t be surprised to see some performance reversion in the short term, particularly if the $US finds some support – that was certainly the case today.
The ASX finished the shortened week on the front foot today with healthcare being the only sector to fall on Friday’s session. The index strength came on the back of gains in energy and materials as commodities caught a bid largely thanks to growing confidence in stimulus in China. Coal stocks were a notable winner in the session, continuing the rally seen this month with Newcastle Coal futures trading more than 3.5% higher today.
The ASX ticked up to the highest level in more than a week on the back of strength in both mining and financials stocks early on. The advance was halted by stronger-than-expected employment data with the Australian economy adding 76k jobs in May and the unemployment rate falling to 3.6% - the strong data lifting expectations of another, if not two more hikes by the RBA in the next few months. The index gave back all the early gains to trade marginally lower around midday, though buyers returned into the afternoon to help eke out a small gain. Healthcare was again the laggard while Tech continues to show strength.
Commodity stocks were the place to be today enjoying the more bullish rhetoric coming from China, the sector underpinning a solid move higher at the index level and more than offsetting a softer-than-expected update from heavyweight CSL.
A positive session to kick off the shortened week which will be dominated by key US economic data. CPI Inflation tonight in the US is expected to be benign, up just 0.1% MoM and 4.1% YoY, down from 4.9%. This should mean the Federal Reserve holds rates at 5-5.25% on Thursday, although the market has largely priced in another 0.25% increase in July.
A solid end to a choppy week for the ASX that was dominated by another 25bps rate hike by the RBA. Sector rotation remains a constant with the first cracks appearing in the recent tech rally while the resource stocks found their feet and edged higher, inline with our recent commentary that tech was vulnerable and we should continue our patient transition towards commodity stocks.
A dose of reality today with some broad-based selling right across the market, as aggressive selling knocked the ASX back from seven-week highs, the recently hot IT sector in the cross-hairs however over 90% of the market finished in the red. Asian markets were down as well, but not by as much while US Futures remained resilient, only trading marginally lower.
The market snapped its seven-day winning streak today with ~60% of the market closing lower, led by weakness in the Energy stocks which succumb to Crude Oil’s decline overnight, while the consumer discretionary sector was hit by a downgrade from UBS. The afternoon session saw the most action as the market slid sharply lower into the close chalking up a bearish close.
A surprisingly positive session for the ASX today, courtesy of the RBA minutes that showed a July 0.25% rate hike in perhaps, not a fait accompli, with the RBA still more data dependent than the market had given it credit for. Bond yields fell after the 11.30 am release, and so too did the Australian dollar and that put a bid tone under the market which built on its impressive 6-day advance now totalling ~220pts/3%, chalking up a 7-week high in the process
A rebound in the Banks and Healthcare stocks underpinned a solid start to the week with the ASX treading its own path today ahead of a public holiday (no trade) in the US tonight. Resources have been on fire so far this month, with the Material Index +7% in June to date, however, we wouldn’t be surprised to see some performance reversion in the short term, particularly if the $US finds some support – that was certainly the case today.
The ASX finished the shortened week on the front foot today with healthcare being the only sector to fall on Friday’s session. The index strength came on the back of gains in energy and materials as commodities caught a bid largely thanks to growing confidence in stimulus in China. Coal stocks were a notable winner in the session, continuing the rally seen this month with Newcastle Coal futures trading more than 3.5% higher today.
The ASX ticked up to the highest level in more than a week on the back of strength in both mining and financials stocks early on. The advance was halted by stronger-than-expected employment data with the Australian economy adding 76k jobs in May and the unemployment rate falling to 3.6% - the strong data lifting expectations of another, if not two more hikes by the RBA in the next few months. The index gave back all the early gains to trade marginally lower around midday, though buyers returned into the afternoon to help eke out a small gain. Healthcare was again the laggard while Tech continues to show strength.
Commodity stocks were the place to be today enjoying the more bullish rhetoric coming from China, the sector underpinning a solid move higher at the index level and more than offsetting a softer-than-expected update from heavyweight CSL.
A positive session to kick off the shortened week which will be dominated by key US economic data. CPI Inflation tonight in the US is expected to be benign, up just 0.1% MoM and 4.1% YoY, down from 4.9%. This should mean the Federal Reserve holds rates at 5-5.25% on Thursday, although the market has largely priced in another 0.25% increase in July.
A solid end to a choppy week for the ASX that was dominated by another 25bps rate hike by the RBA. Sector rotation remains a constant with the first cracks appearing in the recent tech rally while the resource stocks found their feet and edged higher, inline with our recent commentary that tech was vulnerable and we should continue our patient transition towards commodity stocks.
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