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 retreated -0.35% on Tuesday after a briefing from China’s National Development and Reform Commission provided few details on further stimulus. We thought there was a distinct risk of “buy on rumour and sell on fact” playing out, but instead, with few facts actually being released, it was simply a case of sell.
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.
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 retreated -0.35% on Tuesday after a briefing from China’s National Development and Reform Commission provided few details on further stimulus. We thought there was a distinct risk of “buy on rumour and sell on fact” playing out, but instead, with few facts actually being released, it was simply a case of sell.
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.
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