A distinct holiday feel about today’s trade and while the index drifted lower, it still felt like there was a lack of sellers about, and as soon as we get a semblance of positivity from overseas markets, it’s that lack of selling that is key to any Christmas rally that might unfold.
It wasn’t a bad effort really from the ASX today ending the session down 56pts following a sharp sell-off in the US overnight, the Energy & Material stocks providing the backbone as Iron Ore hit a new 6-month high at $US120/tonne.
A tough day for local stocks with the ASX200 closing down -0.64% on broad-based selling which saw over 70% of the market close down on the day. Overnight the Fed prepared investors for interest rates above 5% next year but equities are still unsure whether to embrace the comments as the worst is approaching fast or that this is higher than we expected and a recession is looming hence equities could fall further i.e. as we said this morning the next 48-hours are likely to dictate if we enjoy another seasonal Christmas rally.
Lower rates likely in the US after a more benign inflation print overnight put some heat under our market today with the rate-sensitive areas doing best. 11.30am saw the low for the day before we ground steadily higher throughout the session.
The ASX traded higher today although fell away from its best levels seen in early trade – weakness amongst the resource sector the major influence at the index level with BHP & Fortescue alone taking ~20 points off the index.
A softer session for the ASX ahead of a big week of data in the US including inflation (14th) & then their much-anticipated interest rate decision (15th) where they should at least slow the pace of rate hikes (50bps expected), however as we suggested this morning, it is not just about the size of the incremental move but also the accompanying rhetoric with hints towards what Jerome Powell et al feel is likely in 2023, another...
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.
It wasn’t a bad effort really from the ASX today ending the session down 56pts following a sharp sell-off in the US overnight, the Energy & Material stocks providing the backbone as Iron Ore hit a new 6-month high at $US120/tonne.
A tough day for local stocks with the ASX200 closing down -0.64% on broad-based selling which saw over 70% of the market close down on the day. Overnight the Fed prepared investors for interest rates above 5% next year but equities are still unsure whether to embrace the comments as the worst is approaching fast or that this is higher than we expected and a recession is looming hence equities could fall further i.e. as we said this morning the next 48-hours are likely to dictate if we enjoy another seasonal Christmas rally.
Lower rates likely in the US after a more benign inflation print overnight put some heat under our market today with the rate-sensitive areas doing best. 11.30am saw the low for the day before we ground steadily higher throughout the session.
The ASX traded higher today although fell away from its best levels seen in early trade – weakness amongst the resource sector the major influence at the index level with BHP & Fortescue alone taking ~20 points off the index.
A softer session for the ASX ahead of a big week of data in the US including inflation (14th) & then their much-anticipated interest rate decision (15th) where they should at least slow the pace of rate hikes (50bps expected), however as we suggested this morning, it is not just about the size of the incremental move but also the accompanying rhetoric with hints towards what Jerome Powell et al feel is likely in 2023, another...
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.
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