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%.
Finance Minister Lan Fo’an promised more support for China’s struggling property sector and hinted at more significant government borrowing to shore up the economy, but again, it lacked the granular details investors were looking for. The briefing didn’t produce a headline dollar figure for the fresh fiscal stimulus that the markets had sought.
The ASX200 posted a 10-day high on Thursday and finally closed up +0.4%; support came from the miners who improved throughout the day ahead of Saturday's much-anticipated announcements from China's Finance Minister. After Tuesday's disappointing stimulus updates from Beijing, we expect them to “try harder” this time!
The ASX200 finished up just +0.1% in a choppy session on Wednesday, with the banks offsetting further weakness by the miners – a 6.67% plunge by Chinese stocks didn't help. A 1.8% surge in New Zealand’s equities after the RBNZ cut rates by 0.5% helped local sentiment. Still, it wasn’t enough to make meaningful gains as the heavyweight iron ore miners dragged the chain due to China's lack of further stimulus measures on Tuesday. However, we wouldn't fight Beijing, who announced yesterday evening AEST that further announcements will follow on Saturday when markets are closed—we “wouldn’t be short for quids.
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%.
Finance Minister Lan Fo’an promised more support for China’s struggling property sector and hinted at more significant government borrowing to shore up the economy, but again, it lacked the granular details investors were looking for. The briefing didn’t produce a headline dollar figure for the fresh fiscal stimulus that the markets had sought.
The ASX200 posted a 10-day high on Thursday and finally closed up +0.4%; support came from the miners who improved throughout the day ahead of Saturday's much-anticipated announcements from China's Finance Minister. After Tuesday's disappointing stimulus updates from Beijing, we expect them to “try harder” this time!
The ASX200 finished up just +0.1% in a choppy session on Wednesday, with the banks offsetting further weakness by the miners – a 6.67% plunge by Chinese stocks didn't help. A 1.8% surge in New Zealand’s equities after the RBNZ cut rates by 0.5% helped local sentiment. Still, it wasn’t enough to make meaningful gains as the heavyweight iron ore miners dragged the chain due to China's lack of further stimulus measures on Tuesday. However, we wouldn't fight Beijing, who announced yesterday evening AEST that further announcements will follow on Saturday when markets are closed—we “wouldn’t be short for quids.
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