Stocks snapped a 3-day losing streak today that had seen the ASX 200 pullback -371pts / 5.5%, back down testing the June lows, off 12% this calendar year to date. While today’s bounce back was far from convincing, we are seeing signs of some improvement with a number of sectors/stocks attracting strong buying. When we stand back and consider the overarching positioning at the moment, with the consensus being very bearish, we think a bounce from these levels is the more probable outcome.
A downbeat start to the new trading week with the ASX off more than 1%, although it wasn’t all bad news with some pockets of strength emerging as the day progressed pushing the index +50 points above the early morning lows. Healthcare was a standout +1.97% while recessionary fears led to declines in Energy (-6.30% and Materials (-5.27%).
The rout in the ASX resumed today after yesterday’s holiday. Weakness in risk assets came on the back of rate hikes from the US Fed (+75bps) and the BOE (+50bps), while the FOMC Chairman also warned of a recession. Today the market was concerned with a hit to earnings expectations and the higher discount rate that comes with a hawkish Fed. Materials held up in the face of the selling as iron ore found some support thanks to improving construction activity in China and the hope for further stimulus here.
The ASX was hit more than 100 points today ahead of the public holiday tomorrow, obviously, overnight weakness in the US played into this, however, the outcome of the FOMC meeting tonight and our inability to react to whatever happens until Friday was enough to see traders take risk off the table into a day of light volumes. A weak open, a meander lower throughout the session before another leg lower on news that Putin had announced a partial mobilization saying that the West had tried to “turn Ukraine’s people into cannon fodder.”
A rally in US markets overnight and some support across commodities helped push the ASX higher today. Materials and Energy were the standouts though the rally was largely broad-based with just 2 sectors finishing in the red. Banks also enjoyed some strength today as the Big 4 all rallied more than 1%. Focus remains on big rate calls from the BOE and FOMC out later this week, volumes were light today with a lack of big bets either way from traders.
The market looked average today with any intra-day rallies being sold with the ASX 200 closing on the day’s lows. A lack of interest more than anything which is understandable on a shortened week headlined by the FOMC meeting in the US on Wednesday where rates will go up by at least 75bps.
The ASX softened into the weekend with two min drivers weighing on the index. Bond yields were in focus again today with Aussie 2 & 3-year yields rising over 2% to put pressure on risk assets. Weakness across commodities also weighed on the local bourse as the energy and materials sectors felt the most pain. It was surprising to see the tech and consumer discretionary sectors outperform despite the volatility again today. The selloff into the weekend took the week’s losses to -147pts/-2.13%.
The ASX recovered slightly today, although the best of it was seen before lunchtime, underpinned by a strong move higher in Energy stocks while financials also found some form.
A tough session for the ASX following a stronger than expected inflation read in the US overnight, although a 2.6% decline versus 4-5% in the States could be considered a win! Interest rates sensitive sectors of Real-Estate and IT were hardest hit while the defensives provided some inkling of shelter, although when 193 stocks in the ASX 200 finish in the red, there’s clearly not a lot of positivity to hang one’s hat on.
Another strong day for equities today with the 4th consecutive session in the black taking the index back over 7000. The index has now rallied around 280 points in just 4-days in a swift recovery from Last Wednesday’s rout. Real Estate led the way as bond yields came off, also helping the consumer discretionary sector. Tech couldn’t follow suit, however, that was largely due to stock-specific issues driving the underperformance of the sector. The weakest was healthcare. The focus now turns to US CPI tonight with the market looking at a fall of -0.1% MoM.
A downbeat start to the new trading week with the ASX off more than 1%, although it wasn’t all bad news with some pockets of strength emerging as the day progressed pushing the index +50 points above the early morning lows. Healthcare was a standout +1.97% while recessionary fears led to declines in Energy (-6.30% and Materials (-5.27%).
The rout in the ASX resumed today after yesterday’s holiday. Weakness in risk assets came on the back of rate hikes from the US Fed (+75bps) and the BOE (+50bps), while the FOMC Chairman also warned of a recession. Today the market was concerned with a hit to earnings expectations and the higher discount rate that comes with a hawkish Fed. Materials held up in the face of the selling as iron ore found some support thanks to improving construction activity in China and the hope for further stimulus here.
The ASX was hit more than 100 points today ahead of the public holiday tomorrow, obviously, overnight weakness in the US played into this, however, the outcome of the FOMC meeting tonight and our inability to react to whatever happens until Friday was enough to see traders take risk off the table into a day of light volumes. A weak open, a meander lower throughout the session before another leg lower on news that Putin had announced a partial mobilization saying that the West had tried to “turn Ukraine’s people into cannon fodder.”
A rally in US markets overnight and some support across commodities helped push the ASX higher today. Materials and Energy were the standouts though the rally was largely broad-based with just 2 sectors finishing in the red. Banks also enjoyed some strength today as the Big 4 all rallied more than 1%. Focus remains on big rate calls from the BOE and FOMC out later this week, volumes were light today with a lack of big bets either way from traders.
The market looked average today with any intra-day rallies being sold with the ASX 200 closing on the day’s lows. A lack of interest more than anything which is understandable on a shortened week headlined by the FOMC meeting in the US on Wednesday where rates will go up by at least 75bps.
The ASX softened into the weekend with two min drivers weighing on the index. Bond yields were in focus again today with Aussie 2 & 3-year yields rising over 2% to put pressure on risk assets. Weakness across commodities also weighed on the local bourse as the energy and materials sectors felt the most pain. It was surprising to see the tech and consumer discretionary sectors outperform despite the volatility again today. The selloff into the weekend took the week’s losses to -147pts/-2.13%.
The ASX recovered slightly today, although the best of it was seen before lunchtime, underpinned by a strong move higher in Energy stocks while financials also found some form.
A tough session for the ASX following a stronger than expected inflation read in the US overnight, although a 2.6% decline versus 4-5% in the States could be considered a win! Interest rates sensitive sectors of Real-Estate and IT were hardest hit while the defensives provided some inkling of shelter, although when 193 stocks in the ASX 200 finish in the red, there’s clearly not a lot of positivity to hang one’s hat on.
Another strong day for equities today with the 4th consecutive session in the black taking the index back over 7000. The index has now rallied around 280 points in just 4-days in a swift recovery from Last Wednesday’s rout. Real Estate led the way as bond yields came off, also helping the consumer discretionary sector. Tech couldn’t follow suit, however, that was largely due to stock-specific issues driving the underperformance of the sector. The weakest was healthcare. The focus now turns to US CPI tonight with the market looking at a fall of -0.1% MoM.
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