Yesterday, an index of Asian currencies retreated to a two-year low. Pessimism towards China's economic outlook, coupled with the belief that Trump would support the Greenback, has sent the Bloomberg Asia Dollar Index (ADXY) down more than 4% since late September.
The ASX200 slipped another -0.56% on Monday, closing at its lowest level in a month ahead of global rate decisions. The local benchmark retreated for the fifth straight session, its longest losing streak since April. Losses were broad-based, with over 70% of the main board retreating but led by mining and real estate stocks.
The last year has been a roller-coaster for bonds, with analysts changing their minds about the path for RBA rate rises/cuts like the weather! The only constant has been RBA Governor Michele Bullock, who has been consistent in her message to the market, i.e. don’t get too optimistic towards rate cuts as inflation remained sticky. That all changed on Tuesday afternoon.
The ASX200 opened firmly on Thursday before reversing more than 50 points to finish the session down 0.3%. Strong unemployment data did not help the day, reining in bets for an RBA rate cut in February.
The market further embraced Tuesday's more dovish rhetoric from Michele Bullock on Wednesday as bonds rallied (yields lower) and the Aussie Dollar fell to fresh 2024 lows on the prospect of RBA rate cuts in 2025. Our preferred scenario is unchanged, but the risks have certainly skewed to a more aggressive path by the RBA.
The ASX200 slipped -0.36% on Tuesday, but the pronounced stock/sector rotation is what caught our attention. The stimulatory rhetoric out of Beijing on Tuesday saw aggressive buying return to the ASX miners, in a similar fashion to late September.
The ASX200 staged an impressive recovery on Monday after being down ~50 points at around 11 am; 8 of the main board's 11 sectors closed higher which was enough to see the index eke out a small gain for a day that saw an absence of selling into early weakness.
Momentum mania is sweeping both Wall Street and the ASX, with the risk party continuing unabated on Friday night. The S&P 500 ended last week at fresh records, helped by a +28% gain by the NASDAQ this year.
The ASX200 closed up +0.15% on Thursday in an ultimately lacklustre session, which promised more in the morning before surrendering two-thirds of its gains through the afternoon. Tech and consumer discretionary names advanced over 1% while real estate lagged, slipping -1.4%. On the commodities front, the story remains the same, and it’s starting to get a little bit monotonous as we head into Christmas, less than three weeks away.
The ASX200 slipped another -0.56% on Monday, closing at its lowest level in a month ahead of global rate decisions. The local benchmark retreated for the fifth straight session, its longest losing streak since April. Losses were broad-based, with over 70% of the main board retreating but led by mining and real estate stocks.
The last year has been a roller-coaster for bonds, with analysts changing their minds about the path for RBA rate rises/cuts like the weather! The only constant has been RBA Governor Michele Bullock, who has been consistent in her message to the market, i.e. don’t get too optimistic towards rate cuts as inflation remained sticky. That all changed on Tuesday afternoon.
The ASX200 opened firmly on Thursday before reversing more than 50 points to finish the session down 0.3%. Strong unemployment data did not help the day, reining in bets for an RBA rate cut in February.
The market further embraced Tuesday's more dovish rhetoric from Michele Bullock on Wednesday as bonds rallied (yields lower) and the Aussie Dollar fell to fresh 2024 lows on the prospect of RBA rate cuts in 2025. Our preferred scenario is unchanged, but the risks have certainly skewed to a more aggressive path by the RBA.
The ASX200 slipped -0.36% on Tuesday, but the pronounced stock/sector rotation is what caught our attention. The stimulatory rhetoric out of Beijing on Tuesday saw aggressive buying return to the ASX miners, in a similar fashion to late September.
The ASX200 staged an impressive recovery on Monday after being down ~50 points at around 11 am; 8 of the main board's 11 sectors closed higher which was enough to see the index eke out a small gain for a day that saw an absence of selling into early weakness.
Momentum mania is sweeping both Wall Street and the ASX, with the risk party continuing unabated on Friday night. The S&P 500 ended last week at fresh records, helped by a +28% gain by the NASDAQ this year.
The ASX200 closed up +0.15% on Thursday in an ultimately lacklustre session, which promised more in the morning before surrendering two-thirds of its gains through the afternoon. Tech and consumer discretionary names advanced over 1% while real estate lagged, slipping -1.4%. On the commodities front, the story remains the same, and it’s starting to get a little bit monotonous as we head into Christmas, less than three weeks away.
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