The ASX continued to climb the wall of worry today, opening near the session lows before grinding higher throughout the day to close on the high, just a whisker below 7000. Utilities & Energy were strong while some profit taking played out in the IT stocks which had bounced well from their recent lows.
Falling bond yields have helped the risk on sentiment continue for equities with the local market once again hitting a 6-week high, as it closes in on the 7000 level. All sectors bar Healthcare joined in on the rally, though Real estate found the most support today. Local equities piggy-backed on the strength in the US market overnight thanks to weaker GDP numbers and a more dovish tone from the Fed earlier in the week. Bond yields fell significantly today with Aussie 2-year yields down around 15bps to 2.42%.
A solid session for the ASX keying off a bullish night in the US, however, news that Chinese developers were getting a state-backed lifeline gave the market another kick into the afternoon. Some big moves in individual stocks, particularly those with large short exposure a clear theme while the resources were the sector to be in!
A disjointed morning before the buyers emerged following inflation data that was marginally tamer than expected printing 6.1% YoY versus the 6.3% consensus, signs that the rate of change in prices may be slowing is a good thing. Healthcare was strong today but the biggest influence from an index perspective came from the banks with CBA the standout up +2.24%.
The market remained in a holding pattern today waiting on Wednesday’s inflation print to get a better read on which direction to jump – although it has crept up to 6-week highs. Energy the standout with Coal stocks, in particular, roaring higher however we saw decent buying right across the sector, offsetting weakness that crept into retailers thanks to a downgrade from Walmart (WMT US) after-market in the US.
We edged tentatively into the new week with the ASX finishing 1pt lower as strength in Materials & Utilities was offset by weakness in Tech & Telcos – the market chopping around in a tight ~25pt range. Domestic inflation data is out on Wednesday which will likely be a big driver of stocks ahead of the US Federal Reserve decision on rates that evening. Consensus is for Aussie inflation to print 6.3% YoY while the US Central Bank is expected to hike rates by another 0.75%.
A flat day on the surface but there were plenty of moving parts underneath seemingly with little rhyme or reason to much of the daily swings. The banks were strong, offsetting weakness in telcos and energy. Tech was also though it was hardly a broad-based rally within the sector. There seemed be a short squeeze focus today with the beaten down names rallying without news.
While the ASX was only up ~0.5%, the session had a more bullish vibe to it with some big moves at the stock level as news flow heats up ahead of full-year results. The tech sector shone bright, and so too did the telco’s while the energy stocks struggled on weaker oil prices overnight and some confusion around Woodside’s guidance at their quarterly today.
Finally, the ASX popped on the upside just as the BofA’s latest survey of fund managers showed a ‘dire level of investor pessimism’ with the title of the report authored by their Chief (normally bearish) Strategist Michael Hartnett a very fitting way to describe the current mood of markets…’I’m so bearish, I’m bullish”. Money was desperate to get back into risk assets and equities caught a bid today as a result. The small cap index finished more than 2% better today while the ASX200 had its best session since the early days of the new financial year.
While stocks opened marginally lower, it was the RBA minutes from the last board meeting + Deputy Governor Bullock delivering a speech, both of which signalled sharply higher rates that prompted sellers to kick it up a notch, the IT stocks felt the brunt as did healthcare, two sectors heavily influenced by interests rates while Energy, on the other hand, keyed off a 4.6% rally in Crude prices overnight
Falling bond yields have helped the risk on sentiment continue for equities with the local market once again hitting a 6-week high, as it closes in on the 7000 level. All sectors bar Healthcare joined in on the rally, though Real estate found the most support today. Local equities piggy-backed on the strength in the US market overnight thanks to weaker GDP numbers and a more dovish tone from the Fed earlier in the week. Bond yields fell significantly today with Aussie 2-year yields down around 15bps to 2.42%.
A solid session for the ASX keying off a bullish night in the US, however, news that Chinese developers were getting a state-backed lifeline gave the market another kick into the afternoon. Some big moves in individual stocks, particularly those with large short exposure a clear theme while the resources were the sector to be in!
A disjointed morning before the buyers emerged following inflation data that was marginally tamer than expected printing 6.1% YoY versus the 6.3% consensus, signs that the rate of change in prices may be slowing is a good thing. Healthcare was strong today but the biggest influence from an index perspective came from the banks with CBA the standout up +2.24%.
The market remained in a holding pattern today waiting on Wednesday’s inflation print to get a better read on which direction to jump – although it has crept up to 6-week highs. Energy the standout with Coal stocks, in particular, roaring higher however we saw decent buying right across the sector, offsetting weakness that crept into retailers thanks to a downgrade from Walmart (WMT US) after-market in the US.
We edged tentatively into the new week with the ASX finishing 1pt lower as strength in Materials & Utilities was offset by weakness in Tech & Telcos – the market chopping around in a tight ~25pt range. Domestic inflation data is out on Wednesday which will likely be a big driver of stocks ahead of the US Federal Reserve decision on rates that evening. Consensus is for Aussie inflation to print 6.3% YoY while the US Central Bank is expected to hike rates by another 0.75%.
A flat day on the surface but there were plenty of moving parts underneath seemingly with little rhyme or reason to much of the daily swings. The banks were strong, offsetting weakness in telcos and energy. Tech was also though it was hardly a broad-based rally within the sector. There seemed be a short squeeze focus today with the beaten down names rallying without news.
While the ASX was only up ~0.5%, the session had a more bullish vibe to it with some big moves at the stock level as news flow heats up ahead of full-year results. The tech sector shone bright, and so too did the telco’s while the energy stocks struggled on weaker oil prices overnight and some confusion around Woodside’s guidance at their quarterly today.
Finally, the ASX popped on the upside just as the BofA’s latest survey of fund managers showed a ‘dire level of investor pessimism’ with the title of the report authored by their Chief (normally bearish) Strategist Michael Hartnett a very fitting way to describe the current mood of markets…’I’m so bearish, I’m bullish”. Money was desperate to get back into risk assets and equities caught a bid today as a result. The small cap index finished more than 2% better today while the ASX200 had its best session since the early days of the new financial year.
While stocks opened marginally lower, it was the RBA minutes from the last board meeting + Deputy Governor Bullock delivering a speech, both of which signalled sharply higher rates that prompted sellers to kick it up a notch, the IT stocks felt the brunt as did healthcare, two sectors heavily influenced by interests rates while Energy, on the other hand, keyed off a 4.6% rally in Crude prices overnight
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