The local market copped its biggest hit since February today, falling to a 6-week low after the US market tumbled overnight. Yields were higher again, on the back of the BOE raising rates and also talking to the chance of inflation hitting 10%+ in the final quarter of the year. Tech was the hardest hit, real estate a near second place on the back of the rally in yields. Despite the savage selling, consumer staples held up well to only finish marginally lower.
A reasonable session for the ASX today up ~0.80%, although that was against a backdrop of US stocks that rallied ~3% overnight following the US Fed’s more dovish tone around rates. We’ve written a lot around the markets aggressive positioning on interest rates, our belief that markets were ahead of themselves and a pullback in yields played out overnight, a theme that was also obvious locally today.
The market was strong early keying off a better night overseas and a good update from ANZ which had the banking sector on the front foot early, however as bond yields continued to climb thanks to a stronger than expected retail sales print + Asian markets fell, the ASX lost its early optimism, ending the session marginally lower.
The ASX pulled back today weighed by weakness amongst the resources while the property stocks factored in higher interest rates, and fell. The RBA the main game this afternoon, increasing rates for the first time in nearly 12 years upping the cash rate by 25bps to 0.35%, the market fell because the increase was a tad more than expected (15bps) however it should come as no surprise to investors, 2 year Aussie bond yields are at 2.75% while the 10 year is at 3.4%.
The ASX fell today, around 1% to kick off the new week and new month following a bigger fall on Wall Street Friday thanks to weakness in technology/growth. The RBA is set to increase rates tomorrow, the only real argument being by how much, whether they’ll do 15bps or go by 40bps, the former being the consensus view, while tech stocks continued to drag.
The ASX200 closed out the week on the front foot rallying over 2% on Thursday + Friday taking the index back within 2% of its all-time high. The week saw further volatility focused around China as lockdowns across Beijing and Shanghai reverberated across financial markets i.e. it’s hard to imagine global growth without Chinas participation e.g. BHP Group (BHP) has traded in a whopping $8.60 / 16% range in just a few days as we saw investors try and second guess what comes next.
The bulls re-emerged today with a focus on the resource stocks pushing the Material sector up by 3.5% in aggregate with strong gains across Iron Ore, Copper, Coal, Nickel & Mineral Sands – pretty much right across the board (bar Uranium, Gold & Lithium). US Futures moved higher throughout our session and that prompted a nice bottom left top right sort of day for the market with the ASX200 back up above 7300.
Another tough session for Australian shares although the sell-off had a more pedestrian feel about it with the index tracking up from early morning lows. Inflation data at 11.30am this morning took centre stage and while it came in ahead of expectations, the initial knee-jerk sell-off by equities was met with buying while the reverse played out in the bond market implying that traders are positioned for liftoff.
A tough day for the ASX with the market coming back online after a long weekend losing over 2%. Commodity stocks in the firing line as Chinese lockdowns are starting to create nervousness towards global growth expectations at a time when central banks are raising rates – not a good combo!
A tough session to end a softer week for the market with 80% of the ASX 200 finishing lower. We penned a note on Thursday titled: What are MM’s favorite defensive stocks? Click here and looking at the weekly performances of ASX sectors it was a timely missive with Healthcare, Industrials, Utilities and Staples the relative performers for the period while Materials & IT lost over 5% a pop. On the market today it was the Material stocks that felt the brunt with BHP down -4.36% taking 33points off the index alone, a huge influence.
A reasonable session for the ASX today up ~0.80%, although that was against a backdrop of US stocks that rallied ~3% overnight following the US Fed’s more dovish tone around rates. We’ve written a lot around the markets aggressive positioning on interest rates, our belief that markets were ahead of themselves and a pullback in yields played out overnight, a theme that was also obvious locally today.
The market was strong early keying off a better night overseas and a good update from ANZ which had the banking sector on the front foot early, however as bond yields continued to climb thanks to a stronger than expected retail sales print + Asian markets fell, the ASX lost its early optimism, ending the session marginally lower.
The ASX pulled back today weighed by weakness amongst the resources while the property stocks factored in higher interest rates, and fell. The RBA the main game this afternoon, increasing rates for the first time in nearly 12 years upping the cash rate by 25bps to 0.35%, the market fell because the increase was a tad more than expected (15bps) however it should come as no surprise to investors, 2 year Aussie bond yields are at 2.75% while the 10 year is at 3.4%.
The ASX fell today, around 1% to kick off the new week and new month following a bigger fall on Wall Street Friday thanks to weakness in technology/growth. The RBA is set to increase rates tomorrow, the only real argument being by how much, whether they’ll do 15bps or go by 40bps, the former being the consensus view, while tech stocks continued to drag.
The ASX200 closed out the week on the front foot rallying over 2% on Thursday + Friday taking the index back within 2% of its all-time high. The week saw further volatility focused around China as lockdowns across Beijing and Shanghai reverberated across financial markets i.e. it’s hard to imagine global growth without Chinas participation e.g. BHP Group (BHP) has traded in a whopping $8.60 / 16% range in just a few days as we saw investors try and second guess what comes next.
The bulls re-emerged today with a focus on the resource stocks pushing the Material sector up by 3.5% in aggregate with strong gains across Iron Ore, Copper, Coal, Nickel & Mineral Sands – pretty much right across the board (bar Uranium, Gold & Lithium). US Futures moved higher throughout our session and that prompted a nice bottom left top right sort of day for the market with the ASX200 back up above 7300.
Another tough session for Australian shares although the sell-off had a more pedestrian feel about it with the index tracking up from early morning lows. Inflation data at 11.30am this morning took centre stage and while it came in ahead of expectations, the initial knee-jerk sell-off by equities was met with buying while the reverse played out in the bond market implying that traders are positioned for liftoff.
A tough day for the ASX with the market coming back online after a long weekend losing over 2%. Commodity stocks in the firing line as Chinese lockdowns are starting to create nervousness towards global growth expectations at a time when central banks are raising rates – not a good combo!
A tough session to end a softer week for the market with 80% of the ASX 200 finishing lower. We penned a note on Thursday titled: What are MM’s favorite defensive stocks? Click here and looking at the weekly performances of ASX sectors it was a timely missive with Healthcare, Industrials, Utilities and Staples the relative performers for the period while Materials & IT lost over 5% a pop. On the market today it was the Material stocks that felt the brunt with BHP down -4.36% taking 33points off the index alone, a huge influence.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
Verication email sent.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
!
Invalid One Time Password
Please check you entered the correct info, please also note there is a 10minute time limit on the One Time Passcode
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
Market Matters members receive daily market reports, real-time trade alerts, full access to 5 portfolios and dynamic company data.
Choose how you'd like to proceed:
We have a range of membership options to suit your needs and budget, why not join today and get unlimited access to the premium Market Matters service.
