A solid end to a soft week for stocks with buying amongst the resources offsetting weakness elsewhere – the ASX 200 back up through 7200 as buyers of the ~200 point pullback emerged.
Another soft session for stocks today as the market latches on to the growth concerns permeating through the bond market – we talked about the front end of the yield curve inverting this morning – read here – and what it means for different stocks/sectors, however at a high level, it seems the often transient market is now latching onto softer economic data (GDP for example) and rhetoric implying that unemployment will be on the rise next year, in short, aggressive interest rate hikes are working and the economy is cooling, let’s hope they haven’t turned the screws too hard too fast.
A risk-off session today particularly on the close with some big sell-orders hitting the tape knocking the ASX 200 ~30 points in the match, tearing up what was a solid fightback from midday lows – the intra-day chart below highlighting the move well. It seems the ‘worm might have turned’ in relation to short-term sentiment, big market on close (MOC) orders are indicative of that so we’re now taking a more cautious stance, looking to reduce some market exposure after a solid run by local stocks.
The ASX fell for a 2nd straight session today as the RBA increased the cash rate by a further 0.25% to 3.1%. The market had priced in 16bps of tightening hence bonds yields rose, so did the $A while equities fell after showing resilience in morning trade.
The ASX kicked off the week on the front foot today with Energy & Material stocks pushing the market higher in what was a fairly subdued session. It’s certainly starting to feel more like Christmas as volumes from here start to slide, and moves become more exaggerated, an example today was Elders (ELD) on the downside after UBS cut its recommendation.
Some weakness crept into the broader market today however the selling was quite targeted with 45% of the index still making gains. For the week, good gains in Materials & IT offset weakness in Energy & Discretionary Retail, the market adding ~0.6% overall.
US stocks rallied late in their session to close ~3% higher, while the Nasdaq put on ~4.5% as technology stocks enjoyed the rhetoric from the Federal Reserve around interest rates.
A good day for the ASX to end what has been another stellar monthly performance, the ASX 200 advancing +6.75% (incl dividends) in November led by a ~20% advance by Utilities but more importantly, a 16.3% rally in Materials. All sectors were higher in the month with the bears clearly licking their wounds – and there are plenty of them around!
Today it was more benign inflation that got the buyers going again following a soft first hour or so of trade, the ASX 200 ultimately rallying +60pts from the morning lows with Energy, Materials & Property the standouts.
The S&P/ASX 200 added +30 points /
The market was weaker this morning as concern bubbled over from Chinese protests on the weekend centred on their futile Covid-zero policy, however that pessimism turned to optimism on leaks that the policy will be scrapped, while the Government also relaxed some regulations around property developers – a conciliatory / pro-growth move. Asian stocks rallied, Hong Kong shares +4.5% around our close and that underpinned a ~50pt turnaround for the local market.
Local shares were soft to start the week as unrest in China hit sentiment for growth assets. Commodity-linked sectors were the hardest hit given the concerns around the world’s biggest economy, though energy was particularly weak on the back of ongoing discussions around capping Russian oil prices.
Another soft session for stocks today as the market latches on to the growth concerns permeating through the bond market – we talked about the front end of the yield curve inverting this morning – read here – and what it means for different stocks/sectors, however at a high level, it seems the often transient market is now latching onto softer economic data (GDP for example) and rhetoric implying that unemployment will be on the rise next year, in short, aggressive interest rate hikes are working and the economy is cooling, let’s hope they haven’t turned the screws too hard too fast.
A risk-off session today particularly on the close with some big sell-orders hitting the tape knocking the ASX 200 ~30 points in the match, tearing up what was a solid fightback from midday lows – the intra-day chart below highlighting the move well. It seems the ‘worm might have turned’ in relation to short-term sentiment, big market on close (MOC) orders are indicative of that so we’re now taking a more cautious stance, looking to reduce some market exposure after a solid run by local stocks.
The ASX fell for a 2nd straight session today as the RBA increased the cash rate by a further 0.25% to 3.1%. The market had priced in 16bps of tightening hence bonds yields rose, so did the $A while equities fell after showing resilience in morning trade.
The ASX kicked off the week on the front foot today with Energy & Material stocks pushing the market higher in what was a fairly subdued session. It’s certainly starting to feel more like Christmas as volumes from here start to slide, and moves become more exaggerated, an example today was Elders (ELD) on the downside after UBS cut its recommendation.
Some weakness crept into the broader market today however the selling was quite targeted with 45% of the index still making gains. For the week, good gains in Materials & IT offset weakness in Energy & Discretionary Retail, the market adding ~0.6% overall.
US stocks rallied late in their session to close ~3% higher, while the Nasdaq put on ~4.5% as technology stocks enjoyed the rhetoric from the Federal Reserve around interest rates.
A good day for the ASX to end what has been another stellar monthly performance, the ASX 200 advancing +6.75% (incl dividends) in November led by a ~20% advance by Utilities but more importantly, a 16.3% rally in Materials. All sectors were higher in the month with the bears clearly licking their wounds – and there are plenty of them around!
Today it was more benign inflation that got the buyers going again following a soft first hour or so of trade, the ASX 200 ultimately rallying +60pts from the morning lows with Energy, Materials & Property the standouts.
The S&P/ASX 200 added +30 points /
The market was weaker this morning as concern bubbled over from Chinese protests on the weekend centred on their futile Covid-zero policy, however that pessimism turned to optimism on leaks that the policy will be scrapped, while the Government also relaxed some regulations around property developers – a conciliatory / pro-growth move. Asian stocks rallied, Hong Kong shares +4.5% around our close and that underpinned a ~50pt turnaround for the local market.
Local shares were soft to start the week as unrest in China hit sentiment for growth assets. Commodity-linked sectors were the hardest hit given the concerns around the world’s biggest economy, though energy was particularly weak on the back of ongoing discussions around capping Russian oil prices.
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