The US CPI miss lit a fire under global markets sending the ASX to a 5-month high today as bond yields tumbled. The growth end of the market saw the best of it today, tech closing just shy of 5% better on the session. Further weakness in the coal price put more pressure on the energy sector, while Utilities were the only sector to closer lower as heavy-weight Origin (ORG) took some shine off the sector following yesterday’s surge. Overall, it was a strong week for the market, rallying for the third consecutive week, putting on 265pts/+3.85% as all sectors closed higher.
Multiple takeover bids was not enough to get the ASX higher today with weakness across the banking sector following NABs result yesterday & a pullback in the influential resources weighing on the broader market.
The ASX200 nudged above 7000 again today, only to close a whisker below as we continued to outperform the Asian region. More weakness in the $US overnight underpinned buying amongst the resources sector with Gold finally bouncing (hard) from the naughty corner. Standing back for a moment & reiterating our comments from this morning, the $US has appreciated over +28% in less than 18 months against a wide basket...
A choppy but positive session today, more a lack of conviction on either side of the ledger saw the local index edge marginally higher with the defensive sectors offsetting weakness from the recently strong Energy & Material stocks.
Futures were pricing a significantly higher open (~90pts) this morning and what we got was fairly lacklustre, particularly outside the commodity complex. Reconfirmation leaking from China that Covid zero policies were not being relaxed as previously implied had US Futures on the back foot which took some cream off the recovery locally. Still, we managed to rally ~50pts (stripping out the impact of dividends) with Material stocks a major beneficiary of a strong move higher in the likes of Copper, Nickel & Gold on Friday night.
The local market started on the back foot today, but managed to trend higher into the weekend. The banks battled back off their lows but the index was mostly supported by strength from commodities with Energy and Materials the key winners today with the USD coming off. Despite yesterday’s tumble, the ASX had a strong week, finishing up 106pts/+1.57%, carried by strength in Energy while Real Estate and Staples were the only sectors lower.
Some mixed messages came from the US Federal Reserve overnight as they raised interest rates by 0.75% as expected. Ultimately, they said rates will likely end higher but the increments of future hikes could be smaller. Overall markets took that as bearish and sold stocks aggressively after being initially up. That weakness filtered into a soft session locally with all sectors (bar Telco’s) down on the day.
The ASX consolidated recent gains today, chopping around in a tight trading range having pushed above 7000 early on - ultimately a solid session given the 113pts we added yesterday taking the bounce back from the October low to more than 9%. Banks have been the big driver in recent times, and while we remain bullish on the space as detailed this morning, it seems like the easy money is now behind us as we run into dividends for three of the majors.
The market got the bit between its teeth this morning and rallied nicely from around 11am up ~65points before the RBA decision at 2.30pm where the board raised the cash rate by 0.25% to 2.85%, inline with most expectations, although there was some high profile outliers calling for 0.50%. Post the decision, buyers only became more concentrated and on a day where Victoria was enjoying a cold public holiday and many desks around the country where unattended, buyers were met with little resistance and the ASX stormed 1.65% higher, proving MM’s call of 6900 on a 25bps hike simply too conservative.
A choppy but overall positive day to kick off the new week and end the bullish month of October that saw the ASX200 up 6% led by a 12% rise by the Financial Sector. Only two sectors were down in the month, Staples falling -0.19% and Materials -0.11%. That was not a move many predicted with very bearish positioning meeting a less hawkish central bank (in Australia at least) leading to a strong move higher in equities.
Multiple takeover bids was not enough to get the ASX higher today with weakness across the banking sector following NABs result yesterday & a pullback in the influential resources weighing on the broader market.
The ASX200 nudged above 7000 again today, only to close a whisker below as we continued to outperform the Asian region. More weakness in the $US overnight underpinned buying amongst the resources sector with Gold finally bouncing (hard) from the naughty corner. Standing back for a moment & reiterating our comments from this morning, the $US has appreciated over +28% in less than 18 months against a wide basket...
A choppy but positive session today, more a lack of conviction on either side of the ledger saw the local index edge marginally higher with the defensive sectors offsetting weakness from the recently strong Energy & Material stocks.
Futures were pricing a significantly higher open (~90pts) this morning and what we got was fairly lacklustre, particularly outside the commodity complex. Reconfirmation leaking from China that Covid zero policies were not being relaxed as previously implied had US Futures on the back foot which took some cream off the recovery locally. Still, we managed to rally ~50pts (stripping out the impact of dividends) with Material stocks a major beneficiary of a strong move higher in the likes of Copper, Nickel & Gold on Friday night.
The local market started on the back foot today, but managed to trend higher into the weekend. The banks battled back off their lows but the index was mostly supported by strength from commodities with Energy and Materials the key winners today with the USD coming off. Despite yesterday’s tumble, the ASX had a strong week, finishing up 106pts/+1.57%, carried by strength in Energy while Real Estate and Staples were the only sectors lower.
Some mixed messages came from the US Federal Reserve overnight as they raised interest rates by 0.75% as expected. Ultimately, they said rates will likely end higher but the increments of future hikes could be smaller. Overall markets took that as bearish and sold stocks aggressively after being initially up. That weakness filtered into a soft session locally with all sectors (bar Telco’s) down on the day.
The ASX consolidated recent gains today, chopping around in a tight trading range having pushed above 7000 early on - ultimately a solid session given the 113pts we added yesterday taking the bounce back from the October low to more than 9%. Banks have been the big driver in recent times, and while we remain bullish on the space as detailed this morning, it seems like the easy money is now behind us as we run into dividends for three of the majors.
The market got the bit between its teeth this morning and rallied nicely from around 11am up ~65points before the RBA decision at 2.30pm where the board raised the cash rate by 0.25% to 2.85%, inline with most expectations, although there was some high profile outliers calling for 0.50%. Post the decision, buyers only became more concentrated and on a day where Victoria was enjoying a cold public holiday and many desks around the country where unattended, buyers were met with little resistance and the ASX stormed 1.65% higher, proving MM’s call of 6900 on a 25bps hike simply too conservative.
A choppy but overall positive day to kick off the new week and end the bullish month of October that saw the ASX200 up 6% led by a 12% rise by the Financial Sector. Only two sectors were down in the month, Staples falling -0.19% and Materials -0.11%. That was not a move many predicted with very bearish positioning meeting a less hawkish central bank (in Australia at least) leading to a strong move higher in equities.
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