The ASX snapped a 3-day losing streak today, managing to brush weakness in the US to trade in the black for most of the session. Commodity stocks were left behind as most commodities were weak overnight and throughout our session, not helped by a bouncing USD. All other sectors closed higher today though, with 5 sectors better than 1% on the day. Consumer sectors, both staples and discretionary, were outperformers on the back of strong US retail sales overnight combined with a handful of better-than-expected quarterlies from US counterparts.
Another day of consolidation for the ASX, a tight range as stock-specific news dominated, although, a lack of selling from a broader context following a solid ~12.5% rally from the lows on the ASX200 is the clear takeaway.
The ASX showed a decent underbelly today rallying well from the midday low to close only marginally down on the session. US Futures edged higher + the minutes from the last RBA meeting showed a pause on future hikes remains a possibility – both had buyers back from the sidelines, with tech & most commodities enjoying the buy-the-dip mentality – the MM Flagship Growth Portfolio which is skewed to IT & Materials was down ~60bps below the index this morning, before closing ~30bps above it, showing the clear change of trend intra-day.
The market consolidated recent gains today with the ASX opening well before tracking lower as the day progressed. This is the sort of two steps forward and one back trading action we think will play out as the world continues to grapple with a large cross-section of economic challenges, although we reiterate that we remain positive into early 2023.
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.
Another day of consolidation for the ASX, a tight range as stock-specific news dominated, although, a lack of selling from a broader context following a solid ~12.5% rally from the lows on the ASX200 is the clear takeaway.
The ASX showed a decent underbelly today rallying well from the midday low to close only marginally down on the session. US Futures edged higher + the minutes from the last RBA meeting showed a pause on future hikes remains a possibility – both had buyers back from the sidelines, with tech & most commodities enjoying the buy-the-dip mentality – the MM Flagship Growth Portfolio which is skewed to IT & Materials was down ~60bps below the index this morning, before closing ~30bps above it, showing the clear change of trend intra-day.
The market consolidated recent gains today with the ASX opening well before tracking lower as the day progressed. This is the sort of two steps forward and one back trading action we think will play out as the world continues to grapple with a large cross-section of economic challenges, although we reiterate that we remain positive into early 2023.
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.
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