The ASX 200 keeps teasing us with a significant breakout on the upside before gains are tempered by macro &/or geopolitical news. On Thursday, it was the RBA with Michele Bullock delivering a less dovish speech than hoped by many, warning that underlying inflation may not fall as quickly as anticipated, signalling that an interest rate cut next month is not guaranteed - futures markets are still pricing it as a certainty, with a 40% chance of a third before Christmas.
The ASX200 rallied +0.7% on Wednesday, closing back above 8700 and within 0.4% of its all-time high. Buying was broad-based, with over 70% of the index closing higher. Although Paladin (PDN) and Telix Pharma (TLX) delivered a couple of negative surprises, bullish sentiment continued to prevail with all of the big names from banks to resources advancing.
The ASX200 struggled to close up +0.1% on Tuesday, with over 40% of the main board closing lower, and notable weakness in the influential banking sector.
The ASX200 closed down more than 1% on Monday, enduring its worst drop in three months. The last two trading days have seen similar see-saw action to a pair of days in early April, hopefully it's not a precursor of the volatility ahead!
Since April, global indices have shrugged off bad news almost with disdain, leaving many pundits looking for new reasons to justify a potential fall in stocks. Most importantly, for all the political noise and recession warnings, the linchpin US economy remains resilient, allowing markets to scale new heights.
The ASX 200 closed up +0.9% on Thursday, posting both a fresh intraday and closing high. The catalyst being a surprisingly weak June jobs report, which increased the case for three rate cuts before Christmas - two were already being fully factored in.
The ASX200 took a 0.8% hit on Wednesday, its worst session since early May, with over 65% of the main board retreating. Rising long-term bond yields and ongoing uncertainty around tariffs proved too much for a market striving to post new highs.
The ASX200 surged +0.7% on Tuesday following broad-based gains, which saw 70% of the mainboard close higher. The index posted a fresh record closing high for the second time in a fortnight, ignoring plenty of negative news along the way. Ironically, the only sector which slipped on the day was the materials even after China reported better-than-expected quarterly economic growth, although we wouldn't be surprised to see this translate to some buying in the miners into August.
The ASX200 closed down 0.1% on Monday, which was another solid performance considering overseas indices were weak on Friday night, and the S&P 500 futures fell further during our day session after the Trade War gathered momentum over the weekend. In typical bullish fashion, the index opened around its daily low, grinding higher as BHP and the materials sector offset losses in the financials; CBA and Westpac combined to take over 6 points off the index, which was almost perfectly offset by a +0.9% gain by BHP Group (BHP). The market may feel tired around the 8600 level, but it continues to frustrate the bears as stock and sector rotation remain the main game in town.
Stocks have shown increasing complacency to US tariff threats, and they will face another test this morning after President Donald Trump declared a 30% rate for the European Union and Mexico, effective August 1st. He said Mexico had failed to do enough to stop the flow of fentanyl into the US and complained that the EU’s trade deficit with the US was unfair, almost ~$US150bn last year, as can be seen below.
The ASX200 rallied +0.7% on Wednesday, closing back above 8700 and within 0.4% of its all-time high. Buying was broad-based, with over 70% of the index closing higher. Although Paladin (PDN) and Telix Pharma (TLX) delivered a couple of negative surprises, bullish sentiment continued to prevail with all of the big names from banks to resources advancing.
The ASX200 struggled to close up +0.1% on Tuesday, with over 40% of the main board closing lower, and notable weakness in the influential banking sector.
The ASX200 closed down more than 1% on Monday, enduring its worst drop in three months. The last two trading days have seen similar see-saw action to a pair of days in early April, hopefully it's not a precursor of the volatility ahead!
Since April, global indices have shrugged off bad news almost with disdain, leaving many pundits looking for new reasons to justify a potential fall in stocks. Most importantly, for all the political noise and recession warnings, the linchpin US economy remains resilient, allowing markets to scale new heights.
The ASX 200 closed up +0.9% on Thursday, posting both a fresh intraday and closing high. The catalyst being a surprisingly weak June jobs report, which increased the case for three rate cuts before Christmas - two were already being fully factored in.
The ASX200 took a 0.8% hit on Wednesday, its worst session since early May, with over 65% of the main board retreating. Rising long-term bond yields and ongoing uncertainty around tariffs proved too much for a market striving to post new highs.
The ASX200 surged +0.7% on Tuesday following broad-based gains, which saw 70% of the mainboard close higher. The index posted a fresh record closing high for the second time in a fortnight, ignoring plenty of negative news along the way. Ironically, the only sector which slipped on the day was the materials even after China reported better-than-expected quarterly economic growth, although we wouldn't be surprised to see this translate to some buying in the miners into August.
The ASX200 closed down 0.1% on Monday, which was another solid performance considering overseas indices were weak on Friday night, and the S&P 500 futures fell further during our day session after the Trade War gathered momentum over the weekend. In typical bullish fashion, the index opened around its daily low, grinding higher as BHP and the materials sector offset losses in the financials; CBA and Westpac combined to take over 6 points off the index, which was almost perfectly offset by a +0.9% gain by BHP Group (BHP). The market may feel tired around the 8600 level, but it continues to frustrate the bears as stock and sector rotation remain the main game in town.
Stocks have shown increasing complacency to US tariff threats, and they will face another test this morning after President Donald Trump declared a 30% rate for the European Union and Mexico, effective August 1st. He said Mexico had failed to do enough to stop the flow of fentanyl into the US and complained that the EU’s trade deficit with the US was unfair, almost ~$US150bn last year, as can be seen below.
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