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 choppy and ultimately negative day for the ASX where buying in Energy & Materials was more than offset by a sharp pullback in Tech, although weakness was obvious right across the sectors negatively influenced by higher interest rates.
The local bourse was on the front foot initially, rallying ~0.5% early in the session before caution returned, seemingly the market has lost its mojo after the RBAs hike, failing to hold on to gains. The end result from the index perspective was a small fall as the ASX200 closed on the intraday lows, but there was significant volatility on the sector front.
The local market was on the back foot for most of the session today thanks to softer US markets overnight before yet another hike by the RBA resigned shares to a drop of more than 1%. The latest hike takes Australian interest rates to an 11-year high while Governor Lowe’s commentary seems to suggest he’s not done yet. Discretionary stocks took a hit as a result with a downgrade in the sector not helping the already negative market view of the space being squeezed by tighter household budgets.
A strong start to the week with the ASX holding onto the majority of the gains that were flagged by futures markets this morning. The recently depressed Consumer Discretionary & Materials sectors bounced back while Technology gave back some recent outperformance.
The ASX had a good crack at closing higher on the week today after a very volatile 5 sessions, only just falling short of the milestone in the end. Materials were helped by stronger commodity prices and a softer USD, both reversing moves from earlier in the week with a relief rally for global growth leverage following the US Debt ceiling vote.
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 choppy and ultimately negative day for the ASX where buying in Energy & Materials was more than offset by a sharp pullback in Tech, although weakness was obvious right across the sectors negatively influenced by higher interest rates.
The local bourse was on the front foot initially, rallying ~0.5% early in the session before caution returned, seemingly the market has lost its mojo after the RBAs hike, failing to hold on to gains. The end result from the index perspective was a small fall as the ASX200 closed on the intraday lows, but there was significant volatility on the sector front.
The local market was on the back foot for most of the session today thanks to softer US markets overnight before yet another hike by the RBA resigned shares to a drop of more than 1%. The latest hike takes Australian interest rates to an 11-year high while Governor Lowe’s commentary seems to suggest he’s not done yet. Discretionary stocks took a hit as a result with a downgrade in the sector not helping the already negative market view of the space being squeezed by tighter household budgets.
A strong start to the week with the ASX holding onto the majority of the gains that were flagged by futures markets this morning. The recently depressed Consumer Discretionary & Materials sectors bounced back while Technology gave back some recent outperformance.
The ASX had a good crack at closing higher on the week today after a very volatile 5 sessions, only just falling short of the milestone in the end. Materials were helped by stronger commodity prices and a softer USD, both reversing moves from earlier in the week with a relief rally for global growth leverage following the US Debt ceiling vote.
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