Global stocks continue to encounter headwinds from a number of different areas and last week inflation was the standout raising its head across a number of countries, yet most indices continued to rally and are still hovering around their respective all-time highs. Also we’re approaching the seasonally very strong period for stocks which adds to any optimism. At this stage the liquidity driven stock market rally continues to win arm wrestles against all challengers!
The ASX200 continues to struggle to advance much above 7400 as it pays respect to the historical statistics in play i.e. the bulls may have to wait until the Melbourne Cup runners are off and running before we can see a sustained challenge on 7500, and above. Yesterday saw the index drift from its lunchtime highs in sympathy with US futures, the COVID re-opening names experienced further profit taking while the Real Estate Sector was the standout top performer.
The ASX200 rallied over 0.5% yesterday although it was up over 1% moving into lunch before we saw some weakness creep into the Resources & Energy Sectors. However it was still a solid session for the local index which enjoyed over 65% of stocks on the main board advance with a few noticeably accelerating north i.e. 6 stocks rallied by over 5% while only 1 culprit retreated by the same degree.
The ASX200 surrendered early gains on Tuesday to end the day marginally lower as some of the large miners weighed on the index e.g. BHP Group (BHP) -2% and RIO Tinto (RIO) -3.25%. The RBA released its “minutes” at 11.30am on Tuesday, the unveiling of Philip Lowe & Co’s thoughts at their most recent policy meeting 2-weeks ago took some of the puff out of the hawks sails, at least for a few days, which in the process led to some selling in the banks and resources i.e. the largest sectors in the ASX:
The ASX200 edged higher yesterday even as more stocks retreated under the weight of rising bond yields and nervous US futures – more on the former later. The local market experienced pronounced sector rotation throughout the day as bond markets heavily influenced investors, I have seen a few overnight moves akin to this in 2021 but arguably none as dramatic intra-day:
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from...
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength...
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stocks and sectors has been consistent in its inconsistency but over the months there have been a couple of standouts:
The ASX200 had a fairly quiet Tuesday finally closing down 0.26% in a lackluster session which saw no stocks rally, or fall by more than 5%. The Tech Sector continued to struggle even on a day when the Energy names took a well-deserved breather. Over the day US S&P500 futures appeared to direct traffic on the local market i.e. when they rallied early in the morning the ASX200 advanced around 30-points only to reverse the early gains as the US futures followed Asian indices lower after Sinic Holdings (2103 HK) became the latest Chinese real estate firm...
On Monday the ASX200 again recovered strongly from early losses to end the session down less than 0.3%, when we take into account weak US S&P500 futures throughout much of our day and Star Entertainment (SGR) plunging almost 23% on more regulatory scrutiny for the sector, we felt it was another solid performance by the local market. It may sound myopic on our part considering we’re still bullish risk assets at current levels but stocks are still absorbing bad news and to us it has the overall feel that too many players are now short, or underweight equities.
The ASX200 continues to struggle to advance much above 7400 as it pays respect to the historical statistics in play i.e. the bulls may have to wait until the Melbourne Cup runners are off and running before we can see a sustained challenge on 7500, and above. Yesterday saw the index drift from its lunchtime highs in sympathy with US futures, the COVID re-opening names experienced further profit taking while the Real Estate Sector was the standout top performer.
The ASX200 rallied over 0.5% yesterday although it was up over 1% moving into lunch before we saw some weakness creep into the Resources & Energy Sectors. However it was still a solid session for the local index which enjoyed over 65% of stocks on the main board advance with a few noticeably accelerating north i.e. 6 stocks rallied by over 5% while only 1 culprit retreated by the same degree.
The ASX200 surrendered early gains on Tuesday to end the day marginally lower as some of the large miners weighed on the index e.g. BHP Group (BHP) -2% and RIO Tinto (RIO) -3.25%. The RBA released its “minutes” at 11.30am on Tuesday, the unveiling of Philip Lowe & Co’s thoughts at their most recent policy meeting 2-weeks ago took some of the puff out of the hawks sails, at least for a few days, which in the process led to some selling in the banks and resources i.e. the largest sectors in the ASX:
The ASX200 edged higher yesterday even as more stocks retreated under the weight of rising bond yields and nervous US futures – more on the former later. The local market experienced pronounced sector rotation throughout the day as bond markets heavily influenced investors, I have seen a few overnight moves akin to this in 2021 but arguably none as dramatic intra-day:
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from...
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength...
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stocks and sectors has been consistent in its inconsistency but over the months there have been a couple of standouts:
The ASX200 had a fairly quiet Tuesday finally closing down 0.26% in a lackluster session which saw no stocks rally, or fall by more than 5%. The Tech Sector continued to struggle even on a day when the Energy names took a well-deserved breather. Over the day US S&P500 futures appeared to direct traffic on the local market i.e. when they rallied early in the morning the ASX200 advanced around 30-points only to reverse the early gains as the US futures followed Asian indices lower after Sinic Holdings (2103 HK) became the latest Chinese real estate firm...
On Monday the ASX200 again recovered strongly from early losses to end the session down less than 0.3%, when we take into account weak US S&P500 futures throughout much of our day and Star Entertainment (SGR) plunging almost 23% on more regulatory scrutiny for the sector, we felt it was another solid performance by the local market. It may sound myopic on our part considering we’re still bullish risk assets at current levels but stocks are still absorbing bad news and to us it has the overall feel that too many players are now short, or underweight equities.
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