A solid session for local stocks today, albeit a very quiet one with the market rallying early before treading water late in the day. Minutes from the RBA’s April meeting showed a growing inclination to raise rates sooner than originally thought which underpinned higher bond yields - Healthcare & IT stocks came under pressure as a consequence while Energy & Materials remained firm.
The market traded in a reasonably tight range for much of the session and importantly held firmly above 7500. Four sectors managed gains of more than 1% with tech the big surprise as yields fell despite strong price index numbers earlier in the week. The commodity focussed sectors of materials and energy were also strong performers. Financials struggled but couldn’t hold back the broader index.
Most stocks rallied today pushing the index higher as we edge towards the four day Easter break. Materials & Energy did the heavy lifting more than offsetting weakness amongst the property stocks. While the traditional April rally has so far been elusive, March was up ~7% so understandable that stocks have consolidated that move, however, the index now looks well-positioned for an assault higher, we think.
A softer session for the ASX today with weakness fairly broad-based although far from aggressive in nature. It simply felt like a lack of interest and if the traffic is anything to go by many have already taken off for School holidays / Easter break. Inflation data in the US tonight which will be a key focus – March CPI expected to be 8.4% YoY up from 7.9% in Feb.
The market opened higher this morning however petered out into the afternoon as the resource stocks gave back early gains, particularly in Iron Ore & Lithium. The IT names again dominated the naughty corner as Australian 10 year bond yields topped 3% for the first time since July 2015, however the move was far from aggressive. As discussed in Marco Monday (click here) this morning, we think the respective elastic bands are being tested at their extremes, some reversion is now our preferred scenario.
Commodities helped support the local index into the weekend as the index recouped most of the losses see this week. Materials were strong coming on the back of further sanctions on Russia as well as commentary out of Japan as they look for alternative sources of coal and other bulk commodities. Tech remained under pressure with central banks continuing to push higher rates and balance sheet tightening, also weighing on Real Estate stocks.
The market opened lower this morning & tracked sideways in a lacklustre session with weakness across the IT stocks the only real standout, while there was an obvious move into the more defensive areas of Staples, Utilities & REITS. The fact todays -47pt drop was the biggest in 3 weeks highlights how subdued the market has become at the index level, with all the action happening under the hood.
The market was hit on open to trade down ~80pts however it ground back from 11am onwards to re-coup half of those declines, most support coming from the influential banking sector which had a strong day.
The S&P/ASX 200 fell -37points / -0.37% to close at 7527.
Financials (+3.10%) & Consumer Staples (+2.22%) lead the line today, while IT (-2.88%) & Materials (-1.52) struggled.
Tech stocks keyed off underperformance in the US overnight, the almost daily rotation continues however they are gaining more support overall as the pace of appreciation in bond yields slows.
The market was storming higher this morning to hit a 7573 peak before the RBA implied they had lost patience and would move sooner on rate hikes, another credibility losing exercise from the central bank following their poorly executed attempt at yield curve control. The AUD spiked up through 76c, the first time it’s been there since June 21 and the market sold off, down ~40 odd points from its early peak to close only marginally higher.
A fairly flat session to start the week with little direction at the index level although there were some decent moves under the hood. The fund managers were in focus following a takeover approach while the Utilities, Materials & IT stocks all finished up around 1%.
The market traded in a reasonably tight range for much of the session and importantly held firmly above 7500. Four sectors managed gains of more than 1% with tech the big surprise as yields fell despite strong price index numbers earlier in the week. The commodity focussed sectors of materials and energy were also strong performers. Financials struggled but couldn’t hold back the broader index.
Most stocks rallied today pushing the index higher as we edge towards the four day Easter break. Materials & Energy did the heavy lifting more than offsetting weakness amongst the property stocks. While the traditional April rally has so far been elusive, March was up ~7% so understandable that stocks have consolidated that move, however, the index now looks well-positioned for an assault higher, we think.
A softer session for the ASX today with weakness fairly broad-based although far from aggressive in nature. It simply felt like a lack of interest and if the traffic is anything to go by many have already taken off for School holidays / Easter break. Inflation data in the US tonight which will be a key focus – March CPI expected to be 8.4% YoY up from 7.9% in Feb.
The market opened higher this morning however petered out into the afternoon as the resource stocks gave back early gains, particularly in Iron Ore & Lithium. The IT names again dominated the naughty corner as Australian 10 year bond yields topped 3% for the first time since July 2015, however the move was far from aggressive. As discussed in Marco Monday (click here) this morning, we think the respective elastic bands are being tested at their extremes, some reversion is now our preferred scenario.
Commodities helped support the local index into the weekend as the index recouped most of the losses see this week. Materials were strong coming on the back of further sanctions on Russia as well as commentary out of Japan as they look for alternative sources of coal and other bulk commodities. Tech remained under pressure with central banks continuing to push higher rates and balance sheet tightening, also weighing on Real Estate stocks.
The market opened lower this morning & tracked sideways in a lacklustre session with weakness across the IT stocks the only real standout, while there was an obvious move into the more defensive areas of Staples, Utilities & REITS. The fact todays -47pt drop was the biggest in 3 weeks highlights how subdued the market has become at the index level, with all the action happening under the hood.
The market was hit on open to trade down ~80pts however it ground back from 11am onwards to re-coup half of those declines, most support coming from the influential banking sector which had a strong day.
The S&P/ASX 200 fell -37points / -0.37% to close at 7527.
Financials (+3.10%) & Consumer Staples (+2.22%) lead the line today, while IT (-2.88%) & Materials (-1.52) struggled.
Tech stocks keyed off underperformance in the US overnight, the almost daily rotation continues however they are gaining more support overall as the pace of appreciation in bond yields slows.
The market was storming higher this morning to hit a 7573 peak before the RBA implied they had lost patience and would move sooner on rate hikes, another credibility losing exercise from the central bank following their poorly executed attempt at yield curve control. The AUD spiked up through 76c, the first time it’s been there since June 21 and the market sold off, down ~40 odd points from its early peak to close only marginally higher.
A fairly flat session to start the week with little direction at the index level although there were some decent moves under the hood. The fund managers were in focus following a takeover approach while the Utilities, Materials & IT stocks all finished up around 1%.
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