Another solid session for the market today with Tech & Resources doing the heavy lifting, the ASX200 is now up ~450pts/6.5% from the 20th March low hitting a 5-week high, however, we get a major test tonight with US CPI Inflation data to be released, consensus expectations are for 5.1% YoY which would be the 9th consecutive monthly decline from a 9.1% peak in June 2021.
A few scratching their head on the desk around what’s driving the advance, perhaps traders took risk-off ahead of the 4-day break and the rare occurrence of important U.S. economic data being released on a public holiday, or perhaps corporate activity (Newcrest getting bid again) was the catalyst, whatever the case our view has been a more bullish one suggesting that surprises are more likely on the upside – today’s result certainly fit that view nicely!
The local market tracked lower as the day rolled on as investors took some risk off the table ahead of the long weekend. Most sectors were lower, but tech felt the brunt of the pain, Resources sectors were also soft and while Financials were down, they outperformed the weaker market. Healthcare and Utilities were the main standouts. The market gave up 45pts from its highs to briefly tip below 7200 again, before recovering around half of the fall in the last 2 hours of trade. As the Aussie market enters a 4-day weekend, US Employment data will be released tomorrow night and their equity market is open on Monday.
A nothing day for the market with stocks up early, down late, ending the session little changed. Expect no real movements either way ahead of the Easter Long Weekend where US markets are closed on Friday while in Australia, the ASX is closed both Friday & Monday, although US Non-Farm Payrolls are still being released on Friday night (+240k expected with their unemployment rate to stay steady at 3.6%).
The main focus of the market was on the RBA call at 2.30pm this afternoon as the Central bank decided it had had enough of hiking rates for now in line with the market’s view, the first hold after 10 consecutive hikes by Governor Lowe. Energy was the place to be again today, though it was more the coal names carrying that sector higher while yesterday it was the oil and gas stocks. Tech was also strong, defying the weakness in the Nasdaq overnight. Materials were the main drag on the index, mostly as a result of weakness in iron ore.
The ASX saw the best of it early on today, buoyed by overseas strength on Friday while a ~7% rally in the oil price this morning following OPEC+ production cuts had the Energy sector flying, however, higher Oil prices are inflationary which is a net negative for the trajectory of interest rates, once that sunk in, equities pulled back from early highs.
A solid day to end the week, month & quarter with the ASX putting in strong back-to-back sessions, the market up +3.2% this week alone led by a strong bounce back in Material stocks. For the quarter, the market was up +4.01% inclusive of dividends with the Consumer Discretionary sector up an impressive 12% - this goes to show that market performance doesn’t correlate with mainstream media headlines, so much for the doom & gloom in retail!
Equities caught a bid today as investors showed a more rational mindset with fears on the back of SVB eased. The local market followed the lead of the US to add ~1% today and around 75% of the ASX200 index closed higher on the session. Banks bounced back from yesterday’s selling helping the index finish more than 1% higher. Tech was the biggest gainer today while Real Estate was the only sector to finish lower.
The market opened on the back foot today down ~20pts at the worst before CPI (inflation) data was released at 11.30am, coming in 6.8% versus 7.2% expected and down from 7.4% last month. Clearly, inflation is cooling and while it is still way too high, it’s heading in the right direction, while today’s result should cement the RBA’s decision to pause in April, the market is actually pricing in no more rate hikes from here.
The local market had its best day in two months thanks to buying support across both banks and resources. Financials got a boost following news First Bank would buy SVB, creating a bit of stability in the space. A fuse was also lit under resources thanks to strength in oil overnight while a bid for a junior lithium miner created frenzied buying in the beaten-up space. It wasn’t all good news though as Healthcare & Tech underperformed on the back of weakness from sector heavyweights.
A few scratching their head on the desk around what’s driving the advance, perhaps traders took risk-off ahead of the 4-day break and the rare occurrence of important U.S. economic data being released on a public holiday, or perhaps corporate activity (Newcrest getting bid again) was the catalyst, whatever the case our view has been a more bullish one suggesting that surprises are more likely on the upside – today’s result certainly fit that view nicely!
The local market tracked lower as the day rolled on as investors took some risk off the table ahead of the long weekend. Most sectors were lower, but tech felt the brunt of the pain, Resources sectors were also soft and while Financials were down, they outperformed the weaker market. Healthcare and Utilities were the main standouts. The market gave up 45pts from its highs to briefly tip below 7200 again, before recovering around half of the fall in the last 2 hours of trade. As the Aussie market enters a 4-day weekend, US Employment data will be released tomorrow night and their equity market is open on Monday.
A nothing day for the market with stocks up early, down late, ending the session little changed. Expect no real movements either way ahead of the Easter Long Weekend where US markets are closed on Friday while in Australia, the ASX is closed both Friday & Monday, although US Non-Farm Payrolls are still being released on Friday night (+240k expected with their unemployment rate to stay steady at 3.6%).
The main focus of the market was on the RBA call at 2.30pm this afternoon as the Central bank decided it had had enough of hiking rates for now in line with the market’s view, the first hold after 10 consecutive hikes by Governor Lowe. Energy was the place to be again today, though it was more the coal names carrying that sector higher while yesterday it was the oil and gas stocks. Tech was also strong, defying the weakness in the Nasdaq overnight. Materials were the main drag on the index, mostly as a result of weakness in iron ore.
The ASX saw the best of it early on today, buoyed by overseas strength on Friday while a ~7% rally in the oil price this morning following OPEC+ production cuts had the Energy sector flying, however, higher Oil prices are inflationary which is a net negative for the trajectory of interest rates, once that sunk in, equities pulled back from early highs.
A solid day to end the week, month & quarter with the ASX putting in strong back-to-back sessions, the market up +3.2% this week alone led by a strong bounce back in Material stocks. For the quarter, the market was up +4.01% inclusive of dividends with the Consumer Discretionary sector up an impressive 12% - this goes to show that market performance doesn’t correlate with mainstream media headlines, so much for the doom & gloom in retail!
Equities caught a bid today as investors showed a more rational mindset with fears on the back of SVB eased. The local market followed the lead of the US to add ~1% today and around 75% of the ASX200 index closed higher on the session. Banks bounced back from yesterday’s selling helping the index finish more than 1% higher. Tech was the biggest gainer today while Real Estate was the only sector to finish lower.
The market opened on the back foot today down ~20pts at the worst before CPI (inflation) data was released at 11.30am, coming in 6.8% versus 7.2% expected and down from 7.4% last month. Clearly, inflation is cooling and while it is still way too high, it’s heading in the right direction, while today’s result should cement the RBA’s decision to pause in April, the market is actually pricing in no more rate hikes from here.
The local market had its best day in two months thanks to buying support across both banks and resources. Financials got a boost following news First Bank would buy SVB, creating a bit of stability in the space. A fuse was also lit under resources thanks to strength in oil overnight while a bid for a junior lithium miner created frenzied buying in the beaten-up space. It wasn’t all good news though as Healthcare & Tech underperformed on the back of weakness from sector heavyweights.
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