Monday saw the ASX 200 open sharply lower and continue to fall throughout most of the day as the miners were smacked following the aggressive selling in the US on Friday. The weakness extended during our day session, with silver down another 10% in the afternoon. The weakness in the mining stocks was by far the biggest drag on the ASX200, with the materials sectors 3.1% decline wiping 68-points off the main board, or 75% of the days 1% drop. The falls across the resource names were significant, considering the losses already endured on Friday:
Recent years have seen a sharp rise in crowded trades as momentum investing has come into vogue. But as so often happens when the music stops playing, conviction can evaporate in an instant. In the blink of an eye, trillions can be wiped out as investors and traders stampede toward the same narrow exit.
The ASX 200 recovered from early steep losses yesterday to end Thursday's session down just -0.1%, the reverse of Wednesday's price action. It was another session of polarised performance, although most eyes on trading desks were glued to the prices of copper and gold, whose volatility was almost unprecedented. In the early afternoon, Chinese property stocks surged over +10% after Beijing News confirmed that authorities have softened the strict borrowing rules that had worsened China’s property crash. The impact on the related stocks of the ASX was huge. BHP Group (BHP) reversed early losses to advance +1.80%, while Sandfire Resources (SFR) surged, closing up +5.2% after copper popped 7% in a couple of hours following the news.
The ASX 200 reversed early gains on Wednesday to end the day down -0.1%. A “hotter” than expected CPI accelerated the selling after 11.30 am as fears of an RBA rate hike next week intensified throughout the day.
The ASX200 leapt out of the gate on Tuesday following strong trading by miners on overseas bourses, and it didn’t look back, closing up +0.9%, at its highest level since October when the index posted its all-time high. The charge higher by the local materials sectors is unrelenting, with yesterday’s +1.7% gain taking the sector up +10.8% year-to-date, and we’re still in January! The gains by some well-known names in 2026 have put the mining bulls in dreamland.
Japan’s bond market has rattled global financial markets several times in recent years, and risks appear to be resurfacing. The most memorable yen carry-trade unwind since COVID started after the Bank of Japan (BOJ) raised interest rates in 2024. The BOJ’s first rate hike came in March 2024, when it ended negative interest rates and lifted the policy rate to just 0–0.1%.
The ASX 200 bounced +0.8% on Thursday, driven higher by a robust banking sector - the financials contributed 80% of the index's 66-point gain. The gold sector dominated the losers' enclosure as the precious metal lost its shine following Trump's more balanced speech from Davos, which notably stated that the US wouldn’t invade Greenland or impose tariffs on European nations in February.
The ASX 200 slipped another 0.4% on Wednesday, its third consecutive decline, which was not enough to take the index into negative territory for the year, but it's trying hard. After a brief attempt to bounce on Tuesday, the growth stocks returned to the losers enclosure while the resources delivered another standout performance to mitigate the day's decline.
The ASX200 retreated another -0.7% on Tuesday, leaving the index up only +1.2% for 2026 - not too bad considering the current geopolitical tensions unsettling markets. Selling wasn’t particularly broad-based in yesterday’s session, with over 40% of the main board closing higher, but when the “Big Four” banks and BHP Group (BHP) find themselves in the naughty corner, the local bourse is always going to struggle.
Monday saw the ASX 200 open softly and drift lower to close down -0.3% following President Trump's threats to impose levies on countries opposing his plans to take control of Greenland. Conversely, safe-haven demand pushed gold to fresh all-time highs near $US4,700, while silver surged more than 4%, also notching new record highs. Not surprisingly, gold stocks followed suit, but if MM is correct, it’s time to consider taking some money off the table in precious metals.
Recent years have seen a sharp rise in crowded trades as momentum investing has come into vogue. But as so often happens when the music stops playing, conviction can evaporate in an instant. In the blink of an eye, trillions can be wiped out as investors and traders stampede toward the same narrow exit.
The ASX 200 recovered from early steep losses yesterday to end Thursday's session down just -0.1%, the reverse of Wednesday's price action. It was another session of polarised performance, although most eyes on trading desks were glued to the prices of copper and gold, whose volatility was almost unprecedented. In the early afternoon, Chinese property stocks surged over +10% after Beijing News confirmed that authorities have softened the strict borrowing rules that had worsened China’s property crash. The impact on the related stocks of the ASX was huge. BHP Group (BHP) reversed early losses to advance +1.80%, while Sandfire Resources (SFR) surged, closing up +5.2% after copper popped 7% in a couple of hours following the news.
The ASX 200 reversed early gains on Wednesday to end the day down -0.1%. A “hotter” than expected CPI accelerated the selling after 11.30 am as fears of an RBA rate hike next week intensified throughout the day.
The ASX200 leapt out of the gate on Tuesday following strong trading by miners on overseas bourses, and it didn’t look back, closing up +0.9%, at its highest level since October when the index posted its all-time high. The charge higher by the local materials sectors is unrelenting, with yesterday’s +1.7% gain taking the sector up +10.8% year-to-date, and we’re still in January! The gains by some well-known names in 2026 have put the mining bulls in dreamland.
Japan’s bond market has rattled global financial markets several times in recent years, and risks appear to be resurfacing. The most memorable yen carry-trade unwind since COVID started after the Bank of Japan (BOJ) raised interest rates in 2024. The BOJ’s first rate hike came in March 2024, when it ended negative interest rates and lifted the policy rate to just 0–0.1%.
The ASX 200 bounced +0.8% on Thursday, driven higher by a robust banking sector - the financials contributed 80% of the index's 66-point gain. The gold sector dominated the losers' enclosure as the precious metal lost its shine following Trump's more balanced speech from Davos, which notably stated that the US wouldn’t invade Greenland or impose tariffs on European nations in February.
The ASX 200 slipped another 0.4% on Wednesday, its third consecutive decline, which was not enough to take the index into negative territory for the year, but it's trying hard. After a brief attempt to bounce on Tuesday, the growth stocks returned to the losers enclosure while the resources delivered another standout performance to mitigate the day's decline.
The ASX200 retreated another -0.7% on Tuesday, leaving the index up only +1.2% for 2026 - not too bad considering the current geopolitical tensions unsettling markets. Selling wasn’t particularly broad-based in yesterday’s session, with over 40% of the main board closing higher, but when the “Big Four” banks and BHP Group (BHP) find themselves in the naughty corner, the local bourse is always going to struggle.
Monday saw the ASX 200 open softly and drift lower to close down -0.3% following President Trump's threats to impose levies on countries opposing his plans to take control of Greenland. Conversely, safe-haven demand pushed gold to fresh all-time highs near $US4,700, while silver surged more than 4%, also notching new record highs. Not surprisingly, gold stocks followed suit, but if MM is correct, it’s time to consider taking some money off the table in precious metals.
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