The local bourse was choppy early on today before finding its feet around lunch to rally into the weekend, though some risk was taken off near the close before a strong match saw it close on the day’s high. Strength across the commodity index overnight helped support the local market while the rebound in tech continued. Equities were unfazed by the Bank of England hiking rates to 0.75%, as was expected, tracking higher on the back of China’s support for a stronger market.
A bullish session for the ASX today, the 2nd on the trot with some aggressive buying targeting the IT stocks following in the footsteps of the overnight move. Higher rates are meant to be a negative for Tech as we’ve so often written, however markets are forward looking and rate hikes had already been priced in, the certainty of the move underpinning a relief rally.
A solid session for the Australian market today led by a bounce back in the IT sector with over 75% of the market finishing up on the day, the real test will come tomorrow to see if we can string two positive sessions together with the added complication of the US Fed meeting in the morning our time – consensus is for a 25bps increase in US interest rates.
The holding pattern continues for the market with the ASX giving back ~50% of yesterdays rally. With little clarity in negotiations between Russia and Ukraine, the Federal Reserve meeting in the US on Thursday morning our time (25bps rate hike expected), the growing COVID situation in China and rumblings around whether or not China is going to / has already helped Russia, it’s easy to see why things are subdued, it actually feels more resilient than anything given the shopping list of risk factors that one can point to.
The market continued its trend of being a choppy mess, today rallying by +1.3% after falling on Friday by a similar amount. The influentiual banks were strong pushing the broader financial sector +2.46% higher while the Materials look tired after a cracking run of late, today falling -0.34% to be the only sector in the red. We posed the question in this mornings Macro Monday report, Has Russia created a blow off-off top in commodities? Click here to read.
A poor session to end the week with the market giving back most of yesterday’s gains – it sort of just felt like everyone lost interest after a busy week with volumes light and no impetus to step up and buy anything ahead of the weekend. For the week the ASX was only marginally lower, but under the hood, it was a different story, the two heavyweight sectors being the Materials -3.44% versus the Financials +2.20% on either end of the performance spectrum.
A bullish session for the market today with buyers emerging following a pullback in energy & material prices overnight. The IT stocks built on yesterday’s bounce to lead the line however there was support right across the industrial and financial sectors, while energy & materials gave back some recent gains. In terms of index contribution, the big 4 banks added ~34 pts while BHP, RIO & FMG took ~30 pts off.
The choppy nature of the current market continued today with the ASX bouncing back from yesterday’s decline with all sectors finishing higher. After stabilising yesterday, the IT stocks found form today and if we’re going out on a limb, we’ll now see a decent bounce from here, while a rally in Telstra (TLS) supported the Telco’s.
Some cracks started to appear in the ASX today with the recently hot Energy & Materials sectors coming under pressure while the traditionally defensive Healthcare & Staples saw buying of recent weakness. All the talk has been about commodities in recent days/weeks and today some profit-taking became obvious, which shouldn’t come as a huge surprise really given the recent run.
After opening the session higher, stocks were largely one way for the rest of the day closing down ~1% with the out of favour IT sector continuing to languish, ably supported in the sell-off by Healthcare. On the other hand, if you’re heavily into energy & gold you’re cheering with bullion +$US14 in Asia today, settling around $US1985 at our close, Brent Crude hitting ~US$130/bbl while industrial commodities in Asia continued to rally – more on that below.
A bullish session for the ASX today, the 2nd on the trot with some aggressive buying targeting the IT stocks following in the footsteps of the overnight move. Higher rates are meant to be a negative for Tech as we’ve so often written, however markets are forward looking and rate hikes had already been priced in, the certainty of the move underpinning a relief rally.
A solid session for the Australian market today led by a bounce back in the IT sector with over 75% of the market finishing up on the day, the real test will come tomorrow to see if we can string two positive sessions together with the added complication of the US Fed meeting in the morning our time – consensus is for a 25bps increase in US interest rates.
The holding pattern continues for the market with the ASX giving back ~50% of yesterdays rally. With little clarity in negotiations between Russia and Ukraine, the Federal Reserve meeting in the US on Thursday morning our time (25bps rate hike expected), the growing COVID situation in China and rumblings around whether or not China is going to / has already helped Russia, it’s easy to see why things are subdued, it actually feels more resilient than anything given the shopping list of risk factors that one can point to.
The market continued its trend of being a choppy mess, today rallying by +1.3% after falling on Friday by a similar amount. The influentiual banks were strong pushing the broader financial sector +2.46% higher while the Materials look tired after a cracking run of late, today falling -0.34% to be the only sector in the red. We posed the question in this mornings Macro Monday report, Has Russia created a blow off-off top in commodities? Click here to read.
A poor session to end the week with the market giving back most of yesterday’s gains – it sort of just felt like everyone lost interest after a busy week with volumes light and no impetus to step up and buy anything ahead of the weekend. For the week the ASX was only marginally lower, but under the hood, it was a different story, the two heavyweight sectors being the Materials -3.44% versus the Financials +2.20% on either end of the performance spectrum.
A bullish session for the market today with buyers emerging following a pullback in energy & material prices overnight. The IT stocks built on yesterday’s bounce to lead the line however there was support right across the industrial and financial sectors, while energy & materials gave back some recent gains. In terms of index contribution, the big 4 banks added ~34 pts while BHP, RIO & FMG took ~30 pts off.
The choppy nature of the current market continued today with the ASX bouncing back from yesterday’s decline with all sectors finishing higher. After stabilising yesterday, the IT stocks found form today and if we’re going out on a limb, we’ll now see a decent bounce from here, while a rally in Telstra (TLS) supported the Telco’s.
Some cracks started to appear in the ASX today with the recently hot Energy & Materials sectors coming under pressure while the traditionally defensive Healthcare & Staples saw buying of recent weakness. All the talk has been about commodities in recent days/weeks and today some profit-taking became obvious, which shouldn’t come as a huge surprise really given the recent run.
After opening the session higher, stocks were largely one way for the rest of the day closing down ~1% with the out of favour IT sector continuing to languish, ably supported in the sell-off by Healthcare. On the other hand, if you’re heavily into energy & gold you’re cheering with bullion +$US14 in Asia today, settling around $US1985 at our close, Brent Crude hitting ~US$130/bbl while industrial commodities in Asia continued to rally – more on that below.
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