Recent stimulus announced by Beijing and the PBOC included interest-rate cuts, billions of dollars of liquidity support for stocks, and a vow to end the long-term depreciation in property prices – as we’ve said before a “whatever it takes approach”. Chinese stocks are due to reopen this morning after enjoying the Golden Week break, with many analysts now expecting further gains into Christmas.
The ASX200 experienced another quiet session as China Golden Week approached its conclusion. The index finished up +0.1%, even with over 50% of the market closing lower. However, when CBA, BHP, and CSL all advanced, the markets were going to be well supported. Chinese stocks traded in Hong Kong took a rest after surging ~30%, but a 1.6% pullback was nothing to worry the bulls.
The ASX200 finished a choppy session on Wednesday down just -0.1%, with over 65% of the main board ending lower. However, another solid session by the resources, particularly energy names, was enough to stem the losses. Escalation of the Middle East conflict set the tone early in the morning, but buying in the likes of Beach Energy (BPT) +4.6% and Woodside (WDS) +3.1% almost offset general selling on concerns after Israel vowed to retaliate against Iran for its missile attack – the regions on a knife edge
The ASX200 slipped 0.7% on Tuesday during a rare session that saw the banks and resources close lower. The economic news was net positive, reaffirming the RBA’s tough stance towards interest rates, but it's becoming an increasingly polarised economy
China has been a major buyer of gold as investors searched for an alternative to a plummeting property and stock market and a hedge against the Yuan. However, the last week has mitigated many of the fears weighing on Chinese investors over recent times.
Last week, Beijing pressed the “whatever it takes button” to jumpstart their struggling economy that’s currently on course to miss its annual GDP growth target of ~5%. Financial markets across the world stood back and took notice, with the Shanghai Composite surging to a three-month high
The ASX200 surged +0.95% on Thursday, with broad-based buying propelling the local index back above the psychological 8200 level. Over 85% of stocks in the major index advanced, while 10 of the 11 sectors finished in the green, with the banks again the main drag from a points perspective.
The ASX200 slipped -0.2% on Wednesday while extending its recent stock/sector reversion. Commonwealth Bank (CBA) declined by -2.3% while BHP Group (BHP) added another +3.8%, one more similar day, and BHP will reclaim the top spot as ASX200’s largest company. The rotation back in miners following China's mammoth stimulus saw iron ore rally back towards $US100/MT; remember, analysts are valuing the likes of BHP and RIO, with the bulk commodity closer to $US80/MT.
On Tuesday, the ASX200 delivered a perfect example of how investing is far more about stock/sector performance than the underlying index, which attracts too much attention. So far, 2024 has been dominated by interest rate-sensitive stocks, with the Tech, Financials and Real Estate sectors all up over +20%. Conversely, the materials and energy names were down over 15% before yesterday’s dramatic reversion – one day doesn’t make a summer, but it did catch our attention
The BofA’s September Fund Manager Survey (FMS) revealed a “big shift” from global cyclicals to bond sensitives. September saw a rotation into defensive sectors and out of cyclical sectors. Fund managers’ relative net overweight stance towards defensives (utilities and staples) versus cyclicals (energy, materials and industrials) is now the highest since May 2020. If/when China does regain investors' confidence, the unwind is likely to be dramatic.
The ASX200 experienced another quiet session as China Golden Week approached its conclusion. The index finished up +0.1%, even with over 50% of the market closing lower. However, when CBA, BHP, and CSL all advanced, the markets were going to be well supported. Chinese stocks traded in Hong Kong took a rest after surging ~30%, but a 1.6% pullback was nothing to worry the bulls.
The ASX200 finished a choppy session on Wednesday down just -0.1%, with over 65% of the main board ending lower. However, another solid session by the resources, particularly energy names, was enough to stem the losses. Escalation of the Middle East conflict set the tone early in the morning, but buying in the likes of Beach Energy (BPT) +4.6% and Woodside (WDS) +3.1% almost offset general selling on concerns after Israel vowed to retaliate against Iran for its missile attack – the regions on a knife edge
The ASX200 slipped 0.7% on Tuesday during a rare session that saw the banks and resources close lower. The economic news was net positive, reaffirming the RBA’s tough stance towards interest rates, but it's becoming an increasingly polarised economy
China has been a major buyer of gold as investors searched for an alternative to a plummeting property and stock market and a hedge against the Yuan. However, the last week has mitigated many of the fears weighing on Chinese investors over recent times.
Last week, Beijing pressed the “whatever it takes button” to jumpstart their struggling economy that’s currently on course to miss its annual GDP growth target of ~5%. Financial markets across the world stood back and took notice, with the Shanghai Composite surging to a three-month high
The ASX200 surged +0.95% on Thursday, with broad-based buying propelling the local index back above the psychological 8200 level. Over 85% of stocks in the major index advanced, while 10 of the 11 sectors finished in the green, with the banks again the main drag from a points perspective.
The ASX200 slipped -0.2% on Wednesday while extending its recent stock/sector reversion. Commonwealth Bank (CBA) declined by -2.3% while BHP Group (BHP) added another +3.8%, one more similar day, and BHP will reclaim the top spot as ASX200’s largest company. The rotation back in miners following China's mammoth stimulus saw iron ore rally back towards $US100/MT; remember, analysts are valuing the likes of BHP and RIO, with the bulk commodity closer to $US80/MT.
On Tuesday, the ASX200 delivered a perfect example of how investing is far more about stock/sector performance than the underlying index, which attracts too much attention. So far, 2024 has been dominated by interest rate-sensitive stocks, with the Tech, Financials and Real Estate sectors all up over +20%. Conversely, the materials and energy names were down over 15% before yesterday’s dramatic reversion – one day doesn’t make a summer, but it did catch our attention
The BofA’s September Fund Manager Survey (FMS) revealed a “big shift” from global cyclicals to bond sensitives. September saw a rotation into defensive sectors and out of cyclical sectors. Fund managers’ relative net overweight stance towards defensives (utilities and staples) versus cyclicals (energy, materials and industrials) is now the highest since May 2020. If/when China does regain investors' confidence, the unwind is likely to be dramatic.
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