A stronger open this morning for quarterly index & options expiry hence the delayed start, however, the first hour saw the best of it and the rest of the day was a soggy affair, a slow, meandering slide as selling kicked into US Futures. The market strength post the 0.75% rate rise in the US was short-lived, probably short-covering and now we enter another vortex of data that could well be filled with negative rhetoric.
A choppy session for the ASX with the market showing early signs of stabilisation to be down only marginally before weakness crept into US futures which dragged the local index lower by the close. The US FOMC conclude their meeting on interest rates tonight where they’ll raise rates, probably by 0.50% or potentially a more aggressive 0.75%, recent leaks imply the latter while there have been growing calls to bite the bullet and raise by 1%. A 0.5% hike would deliver a US benchmark interest rate of 1.25%-1.50%
I have a few sayings written on my desk at work and at home, probably the most useful is simply ‘keep turning up’. By that I mean continue to do the work, don’t get too emotional about the market (the media does not do us a favour here) and continue to invest which is exactly what we should be doing in times like this. Sell-off’s pass and it’s the long game that we should all be focussed on. Today’s move was a big one on the downside, particularly this morning with the ASX keying off two bearish sessions in the US to fall ~5%. Nearly everything was sold...
The week ended on a sour note today with the ASX following the US market’s lead with inflation fears being the main driver. Banks found some support early in the day but ended near their lows as traders took risk off into a long weekend. Interest rate-sensitive sectors of Real Estate and the discretionary retailers took the brunt of the selling. The end result saw the market down -4.24%/-307 points for the week, the worst performance since April 2020.
A tough session for Aussie stocks with ~75% of the market trading lower while ~7% of the ASX 200 fell by more than 4%. The banks were again on the nose all finishing down, although there was a ‘buy the dip’ mentality that played out after a tough morning session, Commonwealth Bank (CBA) the most obvious beneficiary finishing ~$2 above their intra-day low however it wasn’t enough to support the broader market which finished on the low of the session.
While the market only rallied ~25pts today it felt a lot better outside of the banking sector with the big 4 down by an average of ~4.2%. Concern that sharper rate increases will have an impact on bad debts the reason with a note from UBS this morning the...
The market was hit today following a more aggressive hike from the RBA with benchmark interest rates up +0.50% to 0.85%, double the +0.25% hike that was expected. We think this is the right move given current inflation, however, the quantum of the hike is a direct result of the RBA’s prior inaction when rates were kept at emergency levels for way too long. They also signalled more to come but also said that inflation will miraculously fall back into their targeted 2-3% band next year. We certainly hope that’s the case, although it seems quite fanciful.
The market kicked off a new week on the backfoot today with weakness in technology and other growth-related stocks weighing on the broader market, offset by continued strength in the Energy sector.
A strong session to end the week with the ASX 200 +0.90% higher ahead of US payrolls data tonight. Gains were fairly broad-based with ~75% of the index up, resource stocks leading the way led by a bounce-back in the battery metals space after a tough period. The retailers the only sector to finish in the red today despite a strong session overseas.
Aussie shares struggled from the get-go today and never really staged any meaningful recovery as traders went risk-off. Concerns around the rate of tightening in the US drove the weakness while Australia could see another rate hike on Tuesday, of up to 40bps according to ANZ’s economist. The concerns meant the high growth Tech sector was the hardest hit, but despite the broad weakness, two sectors finished more than 1% higher.
A choppy session for the ASX with the market showing early signs of stabilisation to be down only marginally before weakness crept into US futures which dragged the local index lower by the close. The US FOMC conclude their meeting on interest rates tonight where they’ll raise rates, probably by 0.50% or potentially a more aggressive 0.75%, recent leaks imply the latter while there have been growing calls to bite the bullet and raise by 1%. A 0.5% hike would deliver a US benchmark interest rate of 1.25%-1.50%
I have a few sayings written on my desk at work and at home, probably the most useful is simply ‘keep turning up’. By that I mean continue to do the work, don’t get too emotional about the market (the media does not do us a favour here) and continue to invest which is exactly what we should be doing in times like this. Sell-off’s pass and it’s the long game that we should all be focussed on. Today’s move was a big one on the downside, particularly this morning with the ASX keying off two bearish sessions in the US to fall ~5%. Nearly everything was sold...
The week ended on a sour note today with the ASX following the US market’s lead with inflation fears being the main driver. Banks found some support early in the day but ended near their lows as traders took risk off into a long weekend. Interest rate-sensitive sectors of Real Estate and the discretionary retailers took the brunt of the selling. The end result saw the market down -4.24%/-307 points for the week, the worst performance since April 2020.
A tough session for Aussie stocks with ~75% of the market trading lower while ~7% of the ASX 200 fell by more than 4%. The banks were again on the nose all finishing down, although there was a ‘buy the dip’ mentality that played out after a tough morning session, Commonwealth Bank (CBA) the most obvious beneficiary finishing ~$2 above their intra-day low however it wasn’t enough to support the broader market which finished on the low of the session.
While the market only rallied ~25pts today it felt a lot better outside of the banking sector with the big 4 down by an average of ~4.2%. Concern that sharper rate increases will have an impact on bad debts the reason with a note from UBS this morning the...
The market was hit today following a more aggressive hike from the RBA with benchmark interest rates up +0.50% to 0.85%, double the +0.25% hike that was expected. We think this is the right move given current inflation, however, the quantum of the hike is a direct result of the RBA’s prior inaction when rates were kept at emergency levels for way too long. They also signalled more to come but also said that inflation will miraculously fall back into their targeted 2-3% band next year. We certainly hope that’s the case, although it seems quite fanciful.
The market kicked off a new week on the backfoot today with weakness in technology and other growth-related stocks weighing on the broader market, offset by continued strength in the Energy sector.
A strong session to end the week with the ASX 200 +0.90% higher ahead of US payrolls data tonight. Gains were fairly broad-based with ~75% of the index up, resource stocks leading the way led by a bounce-back in the battery metals space after a tough period. The retailers the only sector to finish in the red today despite a strong session overseas.
Aussie shares struggled from the get-go today and never really staged any meaningful recovery as traders went risk-off. Concerns around the rate of tightening in the US drove the weakness while Australia could see another rate hike on Tuesday, of up to 40bps according to ANZ’s economist. The concerns meant the high growth Tech sector was the hardest hit, but despite the broad weakness, two sectors finished more than 1% higher.
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