Thursday saw the Annual headline inflation rate fall to 2.8% in the three months to September from 3.8% in the June quarter, slightly better than the forecasted 2.9%, but it wasn’t enough to move bond markets or the Aussie Dollar. The numbers were broadly in line with the RBA’s inflation outlook; remember last week, Michele Bullock said it would take another “year or two” before consumer prices are sustainably in their 2-3% target band, i.e. rates will remain higher for longer.
China's top legislative bodies' looming meeting on 4-8th November is slowly adding a bid tone to the ASX miners. Overnight, Reuters reported that China is weighing up a massive $US1.4 trillion in fiscal stimulus over the next few years, with talk that it might be even more if Trump wins next week's election – Polymarket now have Trump as a 66.7% favourite!
The ASX200 managed to eke out a slight 0.1% gain on Monday, with BHP's 1.3% advance being the market's backbone. It was a reasonably balanced affair on the sector level, with tech names advancing +2% while the rate-sensitive utilities and real estate stocks slipped over 0.5%. The main area of weakness was the energy sector, which declined 0.54%, which was not too bad considering that Paladin Energy (PDN) delivered a disappointing quarterly update and oil tumbled over 5% on easing tensions in the Middle East – more on this later.
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.”
China's top legislative bodies' looming meeting on 4-8th November is slowly adding a bid tone to the ASX miners. Overnight, Reuters reported that China is weighing up a massive $US1.4 trillion in fiscal stimulus over the next few years, with talk that it might be even more if Trump wins next week's election – Polymarket now have Trump as a 66.7% favourite!
The ASX200 managed to eke out a slight 0.1% gain on Monday, with BHP's 1.3% advance being the market's backbone. It was a reasonably balanced affair on the sector level, with tech names advancing +2% while the rate-sensitive utilities and real estate stocks slipped over 0.5%. The main area of weakness was the energy sector, which declined 0.54%, which was not too bad considering that Paladin Energy (PDN) delivered a disappointing quarterly update and oil tumbled over 5% on easing tensions in the Middle East – more on this later.
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.”
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