The ASX built on Friday's strength and rallied again today, with the local bourse embracing news of a US-Iran agreement to reopen the Strait of Hormuz and removing the biggest macro risk hanging over markets in recent months. The rally was broad, but Materials did the heavy lifting.
The ASX finished the week with its strongest session since April, surging almost 2% on the day after US President Donald Trump suggested a deal with Iran could be signed as soon as this weekend. The move wasn't confined to a handful of stocks with around 85% of ASX 200 companies closing higher on the session.
The ASX spent much of today proving a point that has become increasingly apparent over recent weeks – investors are prepared to look through the headlines. Fresh US strikes on Iranian targets overnight initially sparked another risk-off move across global markets, sending oil higher, pushing the Aussie dollar to a two-month low and weighing on growth stocks.
The ASX pushed higher today despite another round of US-Iran hostilities overnight, with investors continuing to look through the latest developments in the Middle East and instead focusing on the broader trajectory of negotiations.
The ASX spent most of today digging itself out of an early hole, with the market initially rattled by Friday night's strong US payrolls report before steadily recovering through the session. After falling sharply at the open, buyers gradually returned and by the close the index had trimmed the bulk of its losses - the market remains willing to buy weakness despite ongoing uncertainty around rates.
Defensive rotation dominated Friday's session as traders continued to shed miners and banks in favour of healthcare and consumer staples, with iron ore's slide to a three-month low and lingering global uncertainty around the lingering Iranian situation hurting sentiment. The ASX 200 finished the week down –1.22%, capping a broadly risk-off five days.
The ASX was on the back foot from the opening bell as investors digested overnight missile strikes between the US and Iran. Selling was significant but orderly, with the market moving gradually lower through the morning before popping and stabilising ~30pts above the lows for much of the afternoon.
The market pushed higher as the day progressed, underpinned by weaker-than-expected GDP data bolstering hopes the Reserve Bank may hold off on further rate increases. The economy is slowing, the budget has knocked confidence, and it would be extraordinary if the RBA hiked in this environment – the market is slowly latching onto this view by the look.
The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street's record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious.
The ASX opened lower and chopped around for most of the day until a sustained upward move in the afternoon pulled the index back to close near flat. Belief in a potential US-Iran ceasefire continued to be hold firm despite a rebound in oil prices, though there was plenty of action under the surface. Technology was the standout sector, with local software stocks tracking the positive move in the U.S on Friday night, while Banks and Healthcare names dragged.
The ASX finished the week with its strongest session since April, surging almost 2% on the day after US President Donald Trump suggested a deal with Iran could be signed as soon as this weekend. The move wasn't confined to a handful of stocks with around 85% of ASX 200 companies closing higher on the session.
The ASX spent much of today proving a point that has become increasingly apparent over recent weeks – investors are prepared to look through the headlines. Fresh US strikes on Iranian targets overnight initially sparked another risk-off move across global markets, sending oil higher, pushing the Aussie dollar to a two-month low and weighing on growth stocks.
The ASX pushed higher today despite another round of US-Iran hostilities overnight, with investors continuing to look through the latest developments in the Middle East and instead focusing on the broader trajectory of negotiations.
The ASX spent most of today digging itself out of an early hole, with the market initially rattled by Friday night's strong US payrolls report before steadily recovering through the session. After falling sharply at the open, buyers gradually returned and by the close the index had trimmed the bulk of its losses - the market remains willing to buy weakness despite ongoing uncertainty around rates.
Defensive rotation dominated Friday's session as traders continued to shed miners and banks in favour of healthcare and consumer staples, with iron ore's slide to a three-month low and lingering global uncertainty around the lingering Iranian situation hurting sentiment. The ASX 200 finished the week down –1.22%, capping a broadly risk-off five days.
The ASX was on the back foot from the opening bell as investors digested overnight missile strikes between the US and Iran. Selling was significant but orderly, with the market moving gradually lower through the morning before popping and stabilising ~30pts above the lows for much of the afternoon.
The market pushed higher as the day progressed, underpinned by weaker-than-expected GDP data bolstering hopes the Reserve Bank may hold off on further rate increases. The economy is slowing, the budget has knocked confidence, and it would be extraordinary if the RBA hiked in this environment – the market is slowly latching onto this view by the look.
The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street's record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious.
The ASX opened lower and chopped around for most of the day until a sustained upward move in the afternoon pulled the index back to close near flat. Belief in a potential US-Iran ceasefire continued to be hold firm despite a rebound in oil prices, though there was plenty of action under the surface. Technology was the standout sector, with local software stocks tracking the positive move in the U.S on Friday night, while Banks and Healthcare names dragged.
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