The Sunday night of UBS’s takeover of Credit Suisse helped the market stem losses early in the session, however, the afternoon showed there are still plenty of nerves around the current market and the banking crisis. At midday, the ASX200 was 40pts above its early session low before the sellers returned once most Asian markets opened, all falling in unison to take the index to the lowest level in more than 4 months to close below 6900. Gold was once again the place to hide, making up the bulk of the winners today, though the materials sector still closed -0.79% lower
A tough day at the office with the ASX down ~1.5%, the only silver lining was the index finished more than +50pts up from the session low hit at 11 am following news that Credit Suisse had tapped the Swiss National Bank for up US$54b, with the hope of containing the issues. While positive, there’s still a lot to play out here and the volatility we’re seeing in bond markets is clearly a concern.
The local market saw a bit of a relief rally today as concerns over the collapse of SVIB eased. Tech was the main winner of the bunch, but a strong day from market heavyweights financials and materials supported the index. Energy closed marginally lower as oil hit a 3-month low overnight before rebounding somewhat in Asian trade today.
Risk assets continued their sell off today with broad-based weakness seen across the ASX. The index fell below the psychological 7000 level for the first time since January 4, though it showed some fight to close marginally above that level in the end. Energy felt the brunt of the pain today as the global growth concerns were caught up in the bank contagion fears.
The jitters caused by the collapse of Silicon Valley Bank caused a stir in the local market today, even after it was announced that depositors with the troubled bank would have access to their funds in full from Monday thanks to the US Treasury, the Fed and the Federal Deposit Insurance Corp (FDIC) that is currently managing the bank’s assets.
Local equities opened slightly lower with likes of BHP Group (BHP), RIO Tinto (RIO), Mineral Resources (MIN), South32 (S32), CSL Ltd (CSL), and ASX Ltd (ASX) all trading ex-dividend initially weighing on the index. However concerted steady broad-based buying across the market saw over 70% of the index finish up on the day led by some standout performances across the coal and tech names ably supported by a strong day for the banks where we saw NAB, WB,C, and ANZ all pass on the RBA’s rate hike to mortgage holders, this should make Philip Lowe happy! However his recent dovish appears to have ignited some buying into the local market which is continuing to outperform its peers.
Equities markets took a hit over the last 12 or so hours following Jerome Powell’s comments overnight as the Head of the Fed turned more hawkish. Traders priced in a larger chance of a 50bp hike at the next meeting following the comments in direct contradiction to his Aussie counterpart Philip Lowe who took a more dovish tone at the RBA’s rate call yesterday. As a result, the USD rallied strongly causing pressure across commodities which was the main drag on the index today.
The Sunday night of UBS’s takeover of Credit Suisse helped the market stem losses early in the session, however, the afternoon showed there are still plenty of nerves around the current market and the banking crisis. At midday, the ASX200 was 40pts above its early session low before the sellers returned once most Asian markets opened, all falling in unison to take the index to the lowest level in more than 4 months to close below 6900. Gold was once again the place to hide, making up the bulk of the winners today, though the materials sector still closed -0.79% lower
A tough day at the office with the ASX down ~1.5%, the only silver lining was the index finished more than +50pts up from the session low hit at 11 am following news that Credit Suisse had tapped the Swiss National Bank for up US$54b, with the hope of containing the issues. While positive, there’s still a lot to play out here and the volatility we’re seeing in bond markets is clearly a concern.
The local market saw a bit of a relief rally today as concerns over the collapse of SVIB eased. Tech was the main winner of the bunch, but a strong day from market heavyweights financials and materials supported the index. Energy closed marginally lower as oil hit a 3-month low overnight before rebounding somewhat in Asian trade today.
Risk assets continued their sell off today with broad-based weakness seen across the ASX. The index fell below the psychological 7000 level for the first time since January 4, though it showed some fight to close marginally above that level in the end. Energy felt the brunt of the pain today as the global growth concerns were caught up in the bank contagion fears.
The jitters caused by the collapse of Silicon Valley Bank caused a stir in the local market today, even after it was announced that depositors with the troubled bank would have access to their funds in full from Monday thanks to the US Treasury, the Fed and the Federal Deposit Insurance Corp (FDIC) that is currently managing the bank’s assets.
Local equities opened slightly lower with likes of BHP Group (BHP), RIO Tinto (RIO), Mineral Resources (MIN), South32 (S32), CSL Ltd (CSL), and ASX Ltd (ASX) all trading ex-dividend initially weighing on the index. However concerted steady broad-based buying across the market saw over 70% of the index finish up on the day led by some standout performances across the coal and tech names ably supported by a strong day for the banks where we saw NAB, WB,C, and ANZ all pass on the RBA’s rate hike to mortgage holders, this should make Philip Lowe happy! However his recent dovish appears to have ignited some buying into the local market which is continuing to outperform its peers.
Equities markets took a hit over the last 12 or so hours following Jerome Powell’s comments overnight as the Head of the Fed turned more hawkish. Traders priced in a larger chance of a 50bp hike at the next meeting following the comments in direct contradiction to his Aussie counterpart Philip Lowe who took a more dovish tone at the RBA’s rate call yesterday. As a result, the USD rallied strongly causing pressure across commodities which was the main drag on the index today.
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