Last week saw risk assets enjoy their best 5-days since 2020 as ongoing bad news from a number of corners was dismissed as largely irrelevant by equities, especially post the Feds rate hike. The ASX200 closed up an impressive 3.3% and we believe there’s a very good chance that a test of all-time highs is in the offing – it’s now less than 5% away. The only real laggards last week were the resources and if they can just take a rest on the downside the tech / growth sector feels poised to drag the market higher, as we keep saying the path of most pain is up:
The ASX200 rallied strongly yesterday to close up +1.1% enjoying further broad-based buying which saw 75% of the index close in positive territory for the day as we closed above the last 3-weeks high. Similar to US indices the ASX enjoyed some strong buying in the IT stocks following the Feds rate hike and hawkish comments which illustrated how crowded the anti-growth stance had become at the start of the week, remember the statistics we recently quoted from the Bank of America Fund Managers Survey:
The ASX200 rallied strongly yesterday to close +1.1% on broad based buying and importantly an absence of meaningful selling – even the embattled Mining & Energy sectors reversed early loses to close marginally higher. However its was the tech names that finally performed the heavy lifting for the ASX with over 90% of the stock’s closing up on the day, assisting the sector post a healthy +3.3% gain. MM has been looking for the growth stocks to recover some of their recent declines, perhaps its will be a classic case of “sell the rumour & buy the fact” after the Feds interest rate decision this morning.
The ASX200 fell 0.7% yesterday under the weight of aggressive selling across the resources sector, almost the complete opposite to how equities kicked off last week e.g. Tuesday saw Santos (STO) -4.1%, IGO Ltd (IGO) -6.8%, BHP Group (BHP) -4.2% and OZ Minerals (OZL) -3.5%. Fortunately the banks maintained their recent strength to limit the losses as the Big Four managed to collectively rally over 1%.
The ASX200 rallied strongly yesterday to close +1.2% with exactly 80% of the market closing up on the day, the Financials were again the standout rallying +2.5% while the resources continued to look a touch tired although not down and out at this stage. Historically the banks simply love this time of year with 3 of the “Big Four” trading ex-dividend over the coming weeks however its this exact same seasonal strong rally by the sector which often bears fruit to the “sell in May & go away” trade for the ASX , to be precise just before the end of April is when the ASX usually gets the...
While the awful humanitarian news continues to flow out of the Ukraine last week saw financial markets focus on the potential risks towards commodities markets and by definition global inflation if we see a prolonged conflict / economic stalemate. History tells us that higher inflation leads to rising interest rates which is a significant headwind for equities, and risk assets generally. Petrol prices have already gone crazy in Sydney, the local station has standard 95 at $2.35, I remember back in the middle of the Coronavirus panic it actually dipped under $1, that’s a clear read on inflation. We’ve all heard how commodity prices...
The ASX200 rallied strongly yesterday to close up 1.1% with over 80% of the market closing up on the day, if it hadn’t been for some profit taking in the energy & mining stocks it would have undoubtedly been a rare triple digit gain for the local index. Much of the strength flowed down from a pullback in oil prices following comments from the Ukraine that’s it’s open to peace talks with Russia, travel stocks were not surprisingly the standout winners e.g. Qantas (QAN) +5.8%, Webjet (WEB) +5.8% & Fight Centre (FLT) +6.6%.
The ASX200 closed up over 1% yesterday on broad-based buying which saw 85% of stocks close higher on the day but it was the banks and IT names which led the line i.e. when the “Big Four” banks advance an average of 1.5% on any day it’s unlikely the bears will be smiling. It was a mixed bag in the losers corner on Wednesday as stocks / sectors almost take it in turns to move in & out of favour, if MM is correct we should be poised to see some major reversion on the performance front that has played our over last few months:
Local stocks got off to an encouraging start yesterday, with the index actually managing to edge higher early on ignoring the 800-point plunge by the Dow but things slowly but surely unwound throughout the day as aggressive selling hit the Resources Sector, perhaps some big players agree with MM that things have simply advanced too far too fast. Tuesday ultimately saw the ASX200 close down 0.8%, back under 7000, as profit taking appeared to roll through the energy stocks and miners while at the same time a number of the classic “risk off” areas such as healthcare...
The ASX200 closed down 1% yesterday as the escalating Ukraine conflict continued to panic markets although we significantly outperformed other indices in the region due to our large resources exposure e.g. Japan, Hong Kong, India, and Korea all fell between 2% & 4%. We saw over 75% of stocks on the ASX200 decline on the day but when the influential energy and resource stocks rally strongly it undoubtedly helps shore up the local index.
The ASX200 rallied strongly yesterday to close up +1.1% enjoying further broad-based buying which saw 75% of the index close in positive territory for the day as we closed above the last 3-weeks high. Similar to US indices the ASX enjoyed some strong buying in the IT stocks following the Feds rate hike and hawkish comments which illustrated how crowded the anti-growth stance had become at the start of the week, remember the statistics we recently quoted from the Bank of America Fund Managers Survey:
The ASX200 rallied strongly yesterday to close +1.1% on broad based buying and importantly an absence of meaningful selling – even the embattled Mining & Energy sectors reversed early loses to close marginally higher. However its was the tech names that finally performed the heavy lifting for the ASX with over 90% of the stock’s closing up on the day, assisting the sector post a healthy +3.3% gain. MM has been looking for the growth stocks to recover some of their recent declines, perhaps its will be a classic case of “sell the rumour & buy the fact” after the Feds interest rate decision this morning.
The ASX200 fell 0.7% yesterday under the weight of aggressive selling across the resources sector, almost the complete opposite to how equities kicked off last week e.g. Tuesday saw Santos (STO) -4.1%, IGO Ltd (IGO) -6.8%, BHP Group (BHP) -4.2% and OZ Minerals (OZL) -3.5%. Fortunately the banks maintained their recent strength to limit the losses as the Big Four managed to collectively rally over 1%.
The ASX200 rallied strongly yesterday to close +1.2% with exactly 80% of the market closing up on the day, the Financials were again the standout rallying +2.5% while the resources continued to look a touch tired although not down and out at this stage. Historically the banks simply love this time of year with 3 of the “Big Four” trading ex-dividend over the coming weeks however its this exact same seasonal strong rally by the sector which often bears fruit to the “sell in May & go away” trade for the ASX , to be precise just before the end of April is when the ASX usually gets the...
While the awful humanitarian news continues to flow out of the Ukraine last week saw financial markets focus on the potential risks towards commodities markets and by definition global inflation if we see a prolonged conflict / economic stalemate. History tells us that higher inflation leads to rising interest rates which is a significant headwind for equities, and risk assets generally. Petrol prices have already gone crazy in Sydney, the local station has standard 95 at $2.35, I remember back in the middle of the Coronavirus panic it actually dipped under $1, that’s a clear read on inflation. We’ve all heard how commodity prices...
The ASX200 rallied strongly yesterday to close up 1.1% with over 80% of the market closing up on the day, if it hadn’t been for some profit taking in the energy & mining stocks it would have undoubtedly been a rare triple digit gain for the local index. Much of the strength flowed down from a pullback in oil prices following comments from the Ukraine that’s it’s open to peace talks with Russia, travel stocks were not surprisingly the standout winners e.g. Qantas (QAN) +5.8%, Webjet (WEB) +5.8% & Fight Centre (FLT) +6.6%.
The ASX200 closed up over 1% yesterday on broad-based buying which saw 85% of stocks close higher on the day but it was the banks and IT names which led the line i.e. when the “Big Four” banks advance an average of 1.5% on any day it’s unlikely the bears will be smiling. It was a mixed bag in the losers corner on Wednesday as stocks / sectors almost take it in turns to move in & out of favour, if MM is correct we should be poised to see some major reversion on the performance front that has played our over last few months:
Local stocks got off to an encouraging start yesterday, with the index actually managing to edge higher early on ignoring the 800-point plunge by the Dow but things slowly but surely unwound throughout the day as aggressive selling hit the Resources Sector, perhaps some big players agree with MM that things have simply advanced too far too fast. Tuesday ultimately saw the ASX200 close down 0.8%, back under 7000, as profit taking appeared to roll through the energy stocks and miners while at the same time a number of the classic “risk off” areas such as healthcare...
The ASX200 closed down 1% yesterday as the escalating Ukraine conflict continued to panic markets although we significantly outperformed other indices in the region due to our large resources exposure e.g. Japan, Hong Kong, India, and Korea all fell between 2% & 4%. We saw over 75% of stocks on the ASX200 decline on the day but when the influential energy and resource stocks rally strongly it undoubtedly helps shore up the local index.
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