Two of the most widely held stocks in Australia, Commonwealth Bank (CBA) and Telstra (TLS), both confirmed this week that crowded/momentum trades can be problematic. Meeting earnings expectations when the market is positioned for an upside surprise is simply not good enough.
The ASX200 suffered at the hands of the banks, particularly CBA, on Wednesday, ending the session down 0.6%; as we often say, the market can't go up without the banks, and in this case, especially CBA, when it tumbles 5.4%.
The ASX200 rallied another +0.4% on Tuesday, embracing the 0.25% RBA rate cut and accompanying dovish commentary. Credit markets are pricing in another 2-3 cuts over the coming 12-months; we think they're being too cautious.
The ASX200 closed up +0.4% on Monday, driven to new highs by a resources sector enjoying a new lease of life; it's already surged +6.7% so far in August. The lithium stocks led the charge following the news that CATL shut down one of the world's largest mines, but on the index level, it was BHP that added the most points, around 30% of the day's 38-point gain. Outside of the gold stocks, the Materials Sector was hot, from lithium to copper, and iron ore.
Artificial intelligence’s (AI) influence on equity markets has been impossible to miss in recent years. Relative newcomer Nvidia Corp. is now the world’s most valuable company, with a market cap approaching $4.5 trillion, comfortably topping Apple Inc. (AAPL US) by a whopping $1 trillion.
The ASX 200 slipped 0.1% on a quiet Thursday, with the index remaining around all-time highs as the exchange where its shares are traded goes from one mess-up to the next.
The ASX200 surged another +0.8% on Wednesday, closing at a fresh all-time high, and well above the psychological 8800 for the first time. Over 75% of the main board closed higher, but the main drivers of the more than 70-point advance were the heavyweight financials and materials sectors, which combined made up almost 60% of the indexes gain.
The ASX200 surged towards new highs on Tuesday, ending the session up +1.2%, only 6 points below its all-time high. Gains were broad-based, with over 90% of the main board advancing, led by the rate-sensitive consumer discretionary, real estate and financial stocks.
The ASX200 recovered from early losses on Monday to end the session in positive territory, an impressive performance considering the Dow's more than 500-point drop on Friday night.
Since Trump unleashed chaos on global equities in April with his tariff bombshell, their recovery has been nothing short of remarkable. In just three months, the ASX200 and US S&P 500 have surged by +22% and +33% respectively. At MM, we’ve held a bullish stance through the recovery, but our confidence is now waning. The cornerstone of the stunning recovery has often been referred to as the “Goldilocks Scenario”.
The ASX200 suffered at the hands of the banks, particularly CBA, on Wednesday, ending the session down 0.6%; as we often say, the market can't go up without the banks, and in this case, especially CBA, when it tumbles 5.4%.
The ASX200 rallied another +0.4% on Tuesday, embracing the 0.25% RBA rate cut and accompanying dovish commentary. Credit markets are pricing in another 2-3 cuts over the coming 12-months; we think they're being too cautious.
The ASX200 closed up +0.4% on Monday, driven to new highs by a resources sector enjoying a new lease of life; it's already surged +6.7% so far in August. The lithium stocks led the charge following the news that CATL shut down one of the world's largest mines, but on the index level, it was BHP that added the most points, around 30% of the day's 38-point gain. Outside of the gold stocks, the Materials Sector was hot, from lithium to copper, and iron ore.
Artificial intelligence’s (AI) influence on equity markets has been impossible to miss in recent years. Relative newcomer Nvidia Corp. is now the world’s most valuable company, with a market cap approaching $4.5 trillion, comfortably topping Apple Inc. (AAPL US) by a whopping $1 trillion.
The ASX 200 slipped 0.1% on a quiet Thursday, with the index remaining around all-time highs as the exchange where its shares are traded goes from one mess-up to the next.
The ASX200 surged another +0.8% on Wednesday, closing at a fresh all-time high, and well above the psychological 8800 for the first time. Over 75% of the main board closed higher, but the main drivers of the more than 70-point advance were the heavyweight financials and materials sectors, which combined made up almost 60% of the indexes gain.
The ASX200 surged towards new highs on Tuesday, ending the session up +1.2%, only 6 points below its all-time high. Gains were broad-based, with over 90% of the main board advancing, led by the rate-sensitive consumer discretionary, real estate and financial stocks.
The ASX200 recovered from early losses on Monday to end the session in positive territory, an impressive performance considering the Dow's more than 500-point drop on Friday night.
Since Trump unleashed chaos on global equities in April with his tariff bombshell, their recovery has been nothing short of remarkable. In just three months, the ASX200 and US S&P 500 have surged by +22% and +33% respectively. At MM, we’ve held a bullish stance through the recovery, but our confidence is now waning. The cornerstone of the stunning recovery has often been referred to as the “Goldilocks Scenario”.
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