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.
Commodity weakness forced the ASX to give up much of this week’s strong gains, trading lower into the weekend. There was little appetite to buy ahead of the break with markets taking a cautious view. Tech was also in the firing line, finally succumbing to the weakness seen in the Nasdaq this week. Banks found their feet today though to help stem some of the selling, recovering some of yesterday’s slide. Despite today’s weakness, the ASX closed up +108pts/+1.63% this week.
The ASX punched new 5-week highs again today, now stringing together 4 consecutive days in the green. Even more impressive was that the index rallied without the banks as a disappointed ANZ result weighed on the Financials Sector. Resources strength drove the index today, supported by improving commodity prices and a weakening USD. Focus will turn to the ECB tonight which is expected to raise rates by 75bps, while early 3Q US GDP estimates will also land.
Aussie shares followed positive overnight leads to jump to a 5-week high early in the day however higher than expected inflation data tapered the rally before midday. The market gave up 43pts in around half an hour, however, support kicked in with the index never dipping into the red today. Despite the higher-than-expected CPI, it was the yield focussed sectors that outperformed the market as Utilities and Real Estate rallied more than 2%.
A choppy session for the ASX today up ~50pts early before tapering off around midday ahead of the Federal Budget tonight – a quick run through of key budget themes below…
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.
Commodity weakness forced the ASX to give up much of this week’s strong gains, trading lower into the weekend. There was little appetite to buy ahead of the break with markets taking a cautious view. Tech was also in the firing line, finally succumbing to the weakness seen in the Nasdaq this week. Banks found their feet today though to help stem some of the selling, recovering some of yesterday’s slide. Despite today’s weakness, the ASX closed up +108pts/+1.63% this week.
The ASX punched new 5-week highs again today, now stringing together 4 consecutive days in the green. Even more impressive was that the index rallied without the banks as a disappointed ANZ result weighed on the Financials Sector. Resources strength drove the index today, supported by improving commodity prices and a weakening USD. Focus will turn to the ECB tonight which is expected to raise rates by 75bps, while early 3Q US GDP estimates will also land.
Aussie shares followed positive overnight leads to jump to a 5-week high early in the day however higher than expected inflation data tapered the rally before midday. The market gave up 43pts in around half an hour, however, support kicked in with the index never dipping into the red today. Despite the higher-than-expected CPI, it was the yield focussed sectors that outperformed the market as Utilities and Real Estate rallied more than 2%.
A choppy session for the ASX today up ~50pts early before tapering off around midday ahead of the Federal Budget tonight – a quick run through of key budget themes below…
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