Donald Trump is the clear favourite for next week's election. He's now rated a ~60% chance of winning the White House, and markets are moving accordingly. As we said last week, the “Trump Trade” has returned with a vengeance, and the impact on bond yields is reverberating across all financial markets.
The ASX200 slipped just 0.1% on Thursday, a good effort considering the Dow tumbled over 400-points after rising bonds yields weighed on stocks, and in particular the tech sector – overnight US mortgage rates rose for a fourth week to 6.54%. The banks were again the backbone of the local market with the “Big Four” rallying an average of 0.8%, with most of the group back within striking distance of their 2024 high.
The ASX200 edged up +0.1% on Wednesday with the market trading in a fairly tight 36-point range. Large supermarkets Woolies and Coles helped the consumer staples to pole position, up 1.3% while tech took the wooden spoon slipping 1%, not helped by another down day for Richard Whites WiseTech (WTC) – more on this later.
The ASX200 came down to earth with a thud on Tuesday as rising bond yields finally took their toll on stocks. The local 3-year yield is up 0.5% over recent weeks, reducing the appeal of equities compared to bonds. Economic data at home and abroad has remained buoyant, lessening the need for significant rate cuts over the coming year.
The ASX200 enjoyed a solid start to the week, with the index gaining 0.74% on broad-based buying, which ultimately saw ~70% of the main board close higher. On the sector level, only tech retreated, while the materials and energy stocks led the gains, with gold and uranium names dominating the “winners enclosure.”
The bookies suddenly have Donald Trump as a standout favourite for next month's election. With two weeks to go, he's rated ~58% chance to win - it's still a coin toss to us. However, over recent weeks, equity markets have weighed back into stocks benefitting from a Republican victory after previously swinging towards the Democrats following the Kamala Harris v Donald Trump debate.
The ASX200 rallied 0.86% on Thursday, bringing the local index within striking distance of 8400 for the first time. Gains were broad-based, with ~75% of the main board closing higher, but the banks contributed the most points, with the “Big Four” closing up an average of 1.8% following a strong overnight result by Morgan Stanley (MS US) and stronger than expected employment data locally. We hate to be boring, but “the ASX doesn’t go down without the banks.”
The ASX200 slipped 0.4% on Wednesday, rotating through the day to close at a similar level to where it opened. The banks advanced throughout the session, with the financial sector ultimately finishing up by +0.27%. Conversely, the other ten main sectors closed lower, led by tech, which fell -1.35%, following the weak overnight session by their peers on Wall Street. There were a couple of interesting moves within the resources sector, both of which are worth monitoring.
The ASX200 rallied +0.79% on Tuesday, taking the local index above 8300 for the first time. Buying was broad-based, with over 80% of the main board closing in positive territory, but it was financials, healthcare, and tech stocks that led the line, with all three sectors closing over +2.3% higher. The index opened on the front foot following gains on Wall Street and ground higher through the day on an absence of selling in a market that “feels” underweight, especially in some of the influential pockets.
Local stocks shrugged off fears around Saturday's tepid briefing on China stimulus from Lan Fo’an. The local miners rallied throughout the day to close near their session highs, and the Materials Sector was the day's top performer, gaining +1.3%.
The ASX200 slipped just 0.1% on Thursday, a good effort considering the Dow tumbled over 400-points after rising bonds yields weighed on stocks, and in particular the tech sector – overnight US mortgage rates rose for a fourth week to 6.54%. The banks were again the backbone of the local market with the “Big Four” rallying an average of 0.8%, with most of the group back within striking distance of their 2024 high.
The ASX200 edged up +0.1% on Wednesday with the market trading in a fairly tight 36-point range. Large supermarkets Woolies and Coles helped the consumer staples to pole position, up 1.3% while tech took the wooden spoon slipping 1%, not helped by another down day for Richard Whites WiseTech (WTC) – more on this later.
The ASX200 came down to earth with a thud on Tuesday as rising bond yields finally took their toll on stocks. The local 3-year yield is up 0.5% over recent weeks, reducing the appeal of equities compared to bonds. Economic data at home and abroad has remained buoyant, lessening the need for significant rate cuts over the coming year.
The ASX200 enjoyed a solid start to the week, with the index gaining 0.74% on broad-based buying, which ultimately saw ~70% of the main board close higher. On the sector level, only tech retreated, while the materials and energy stocks led the gains, with gold and uranium names dominating the “winners enclosure.”
The bookies suddenly have Donald Trump as a standout favourite for next month's election. With two weeks to go, he's rated ~58% chance to win - it's still a coin toss to us. However, over recent weeks, equity markets have weighed back into stocks benefitting from a Republican victory after previously swinging towards the Democrats following the Kamala Harris v Donald Trump debate.
The ASX200 rallied 0.86% on Thursday, bringing the local index within striking distance of 8400 for the first time. Gains were broad-based, with ~75% of the main board closing higher, but the banks contributed the most points, with the “Big Four” closing up an average of 1.8% following a strong overnight result by Morgan Stanley (MS US) and stronger than expected employment data locally. We hate to be boring, but “the ASX doesn’t go down without the banks.”
The ASX200 slipped 0.4% on Wednesday, rotating through the day to close at a similar level to where it opened. The banks advanced throughout the session, with the financial sector ultimately finishing up by +0.27%. Conversely, the other ten main sectors closed lower, led by tech, which fell -1.35%, following the weak overnight session by their peers on Wall Street. There were a couple of interesting moves within the resources sector, both of which are worth monitoring.
The ASX200 rallied +0.79% on Tuesday, taking the local index above 8300 for the first time. Buying was broad-based, with over 80% of the main board closing in positive territory, but it was financials, healthcare, and tech stocks that led the line, with all three sectors closing over +2.3% higher. The index opened on the front foot following gains on Wall Street and ground higher through the day on an absence of selling in a market that “feels” underweight, especially in some of the influential pockets.
Local stocks shrugged off fears around Saturday's tepid briefing on China stimulus from Lan Fo’an. The local miners rallied throughout the day to close near their session highs, and the Materials Sector was the day's top performer, gaining +1.3%.
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