The banks and resources hugely influence the ASX200, with the latter in the doldrums through most of 2024. Trump's emphatic victory earlier this month exacerbated this underperformance. This morning, we’ve reconsidered what comes next as Beijing fails to deliver the bazooka-style stimulus many anticipated.
The ASX200 surrendered early gains on Thursday to finish the session down just 3 points, holding above 8320 technical support. How the US would react to Nvidia’s (NVDA US) result, delivered yesterday morning our time, was a hot topic of conversation that kept many players on the sidelines as the early reaction was muted, the stock initially dipping 5% in after-market trade.
The ASX200 drifted lower throughout Wednesday to finish a disappointing session down -0.57%, with over 80% of the main board closing lower. It was a “risk-off” day for the local bourse, with concerns around Trump's looming tariffs and the Ukraine-Russia War weighing on sentiment.
The ASX200 was soaring towards 8450 around 3pm yesterday afternoon before an aggressive sell order swept through the market, leaving it up 74-points/0.9%; it still sounds like a great day, but in the last hour on Tuesday, over half of the day's gains had been wiped out.
The ASX200 recovered from early losses on Monday morning to close up +0.25%, an encouraging performance after a weak session in the US on Friday night.
US stocks ended last week on the back foot, with the broad-based S&P500 down -2.1 % over the 5-days while the NASDAQ fared worse, falling -3.4%. Trump's landslide victory initially propelled US stocks higher as deregulation and lower corporate taxes set the bulls charging.
The ASX200 snapped its three-day losing streak on Thursday, helped by increased bets on a Fed rate cut in December following the inline US inflation print. Locally, Australia's unemployment rate was unchanged at 4.1% in October, which was also in line with expectations and had little impact on domestic bonds or the $A.
Wednesday saw the ASX200 retreat for the 3rd consecutive session as high US bond yields and inflation concerns post-Trump landslide victory weighed on market sentiment.
China attempted to give equities a shot in the arm on Tuesday but it was extremely short-lived. We expected the “China Trade” to pullback after its aggressive rally in late September but the retracement has been deeper than anticipated with the market now firmly in a “glass half empty” mood
The initial “Trump Bump” is probably already maturing but he hasn’t even been sworn in yet and there are still four more years to go, with Chapter 1 likely to be dominated by deregulation and tariffs. On the election trail, the President-elect described “tariffs” as his favourite word although it took time for him to roll them out in 2016. Conversely, corporate Australia is arguably heading in the opposite direction with government inquiries/commissions becoming increasingly commonplace, they may often be warranted but they’re generally bad news for stocks, especially the long drawn-out affairs that seem to be in vogue.
The ASX200 surrendered early gains on Thursday to finish the session down just 3 points, holding above 8320 technical support. How the US would react to Nvidia’s (NVDA US) result, delivered yesterday morning our time, was a hot topic of conversation that kept many players on the sidelines as the early reaction was muted, the stock initially dipping 5% in after-market trade.
The ASX200 drifted lower throughout Wednesday to finish a disappointing session down -0.57%, with over 80% of the main board closing lower. It was a “risk-off” day for the local bourse, with concerns around Trump's looming tariffs and the Ukraine-Russia War weighing on sentiment.
The ASX200 was soaring towards 8450 around 3pm yesterday afternoon before an aggressive sell order swept through the market, leaving it up 74-points/0.9%; it still sounds like a great day, but in the last hour on Tuesday, over half of the day's gains had been wiped out.
The ASX200 recovered from early losses on Monday morning to close up +0.25%, an encouraging performance after a weak session in the US on Friday night.
US stocks ended last week on the back foot, with the broad-based S&P500 down -2.1 % over the 5-days while the NASDAQ fared worse, falling -3.4%. Trump's landslide victory initially propelled US stocks higher as deregulation and lower corporate taxes set the bulls charging.
The ASX200 snapped its three-day losing streak on Thursday, helped by increased bets on a Fed rate cut in December following the inline US inflation print. Locally, Australia's unemployment rate was unchanged at 4.1% in October, which was also in line with expectations and had little impact on domestic bonds or the $A.
Wednesday saw the ASX200 retreat for the 3rd consecutive session as high US bond yields and inflation concerns post-Trump landslide victory weighed on market sentiment.
China attempted to give equities a shot in the arm on Tuesday but it was extremely short-lived. We expected the “China Trade” to pullback after its aggressive rally in late September but the retracement has been deeper than anticipated with the market now firmly in a “glass half empty” mood
The initial “Trump Bump” is probably already maturing but he hasn’t even been sworn in yet and there are still four more years to go, with Chapter 1 likely to be dominated by deregulation and tariffs. On the election trail, the President-elect described “tariffs” as his favourite word although it took time for him to roll them out in 2016. Conversely, corporate Australia is arguably heading in the opposite direction with government inquiries/commissions becoming increasingly commonplace, they may often be warranted but they’re generally bad news for stocks, especially the long drawn-out affairs that seem to be in vogue.
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