The ASX is set to rise ~50 points this morning recouping about a 1/3rd of Fridays aggressive 2% decline. Much of the country is enjoying a public Holiday Monday today although the ASX remains open. Market Matters is off today however we'll be back tomorrow with our usual Macro Monday Report (on Tuesday).
The ASX200 finally found its mojo on the last day of September rallying 1.88% on broad based buying which ultimately saw 86% of stocks close in positive territory, the “Big 4” banks caught my attention gaining an average of 2.4% - perhaps we have a clue as to what sector could drag the index to fresh highs, as we said yesterday moving forward the heavy liftings likely to be relatively concentrated. COVID has already become old news as far as financial markets are concerned, Thursday saw awful...
As we approach Q4 the question being asked by many is can the AX200 again rise from the ashes, yesterday it was battered for the 2nd successive day as September looks set to live up to its bearish reputation, the index is sitting down 4.5% with just today’s session remaining. Stocks have been caught with a classic “1-2 combination” as the deteriorating macro picture threatens to derail the liquidity driven bull market:
MM talked about the ASX200 rotating around the 7400 area in Tuesdays “What Matters Today” Report only for it close under 7300 just 7-hours later as broad based selling rolled through the index – in hindsight the local index again called the overnight drop in US stocks perfectly . The losses were focused in the interest rate sensitive growth stocks such as Healthcare -3.6% and Tech -2.9%, importantly if MM is correct and bond yields are going to maintain their upward momentum into 2022 the rotation out of growth into value names should be ongoing – our portfolios which...
The ASX200 enjoyed a solid start to the week although it did experience some pretty aggressive selling into the close which aligns with our view that the strong post COVID rally is maturing i.e. some sellers are appearing into strength. While the banks led the charge on Monday they were very well supported by the “re-opening trade” as Gladys looks to put COVID well and truly into the rear view mirror – as she said “living with COVID won’t be easy but its manageable”. At this stage we continue to believe the...
The ASX200 along with most global indices has taken a dive this month, its amazing how fundamentals have a habit of delivering events which coincide with the dominant seasonal trends i.e. September is regarded by many as the worst month to invest in equities. The fascinating impact of human psychology as it swings between “Fear & Greed” is evident when a market falls as expected only for investors to then find themselves questioning their fortitude to stand up and buy when things feel bad – an action which is usually but not always the correct course...
The penultimate day of the trading week saw local stocks stage a strong recovery and we commence today’s session with the index down less than 0.5% for the week, what Chinese property panic! The market enjoyed broad based buying yesterday with over 80% of stocks rallying led by the Energy and IT names although impressively all 11 sectors managed to post gains. The re-opening / economic recovery trade came back into focus as NSW’s vaccination rate continues to increase above all but the most optimistic expectations, at the current pace 90% of the eligible population...
Wednesday saw the ASX200 rally strongly from early sharp losses after the PBOC (China’s central bank) injected more Yuan than anticipated into its banking system coupled with embattled property group Evergrande announcing it would make an interest payment today – the latter is a small step along a long journey but the action out of Beijing implies the communist party intends to “manage” the situation. The market reaction wasn’t so much one of huge “risk on” as opposed to a strong bounce / sigh of relief after a tough period with the recovery most noticeable in the large cap iron ore names:
The ASX200 staged a strong recovery yesterday after initially taking Septembers sell-off to 343-points / 4.6%, coincidentally testing our 7200 target area in the process. Ultimately Tuesday was a frustrating session for MM as we sat poised to increase risk into the pullback but our targeted purchases all fell short of our ideal levels discussed in recent reports. We must always remember that investing is rarely a perfect science and our main focus running into October will be more around whether MM pays up...
The ASX200 was hit hard on Monday falling by more than 2% on very broad based selling. The only pocket of strength coming from the utilities sector which benefited from yet more corporate activity from cashed up foreign investors, this time Canada’s Brookfield took aim at AusNet Services (AST) which is involved in electricity & gas distribution in Victoria elevating the stock by ~20%. There is certainly cash around for critical infrastructure assets that can lock in long term funding at attractive rates.
The ASX200 finally found its mojo on the last day of September rallying 1.88% on broad based buying which ultimately saw 86% of stocks close in positive territory, the “Big 4” banks caught my attention gaining an average of 2.4% - perhaps we have a clue as to what sector could drag the index to fresh highs, as we said yesterday moving forward the heavy liftings likely to be relatively concentrated. COVID has already become old news as far as financial markets are concerned, Thursday saw awful...
As we approach Q4 the question being asked by many is can the AX200 again rise from the ashes, yesterday it was battered for the 2nd successive day as September looks set to live up to its bearish reputation, the index is sitting down 4.5% with just today’s session remaining. Stocks have been caught with a classic “1-2 combination” as the deteriorating macro picture threatens to derail the liquidity driven bull market:
MM talked about the ASX200 rotating around the 7400 area in Tuesdays “What Matters Today” Report only for it close under 7300 just 7-hours later as broad based selling rolled through the index – in hindsight the local index again called the overnight drop in US stocks perfectly . The losses were focused in the interest rate sensitive growth stocks such as Healthcare -3.6% and Tech -2.9%, importantly if MM is correct and bond yields are going to maintain their upward momentum into 2022 the rotation out of growth into value names should be ongoing – our portfolios which...
The ASX200 enjoyed a solid start to the week although it did experience some pretty aggressive selling into the close which aligns with our view that the strong post COVID rally is maturing i.e. some sellers are appearing into strength. While the banks led the charge on Monday they were very well supported by the “re-opening trade” as Gladys looks to put COVID well and truly into the rear view mirror – as she said “living with COVID won’t be easy but its manageable”. At this stage we continue to believe the...
The ASX200 along with most global indices has taken a dive this month, its amazing how fundamentals have a habit of delivering events which coincide with the dominant seasonal trends i.e. September is regarded by many as the worst month to invest in equities. The fascinating impact of human psychology as it swings between “Fear & Greed” is evident when a market falls as expected only for investors to then find themselves questioning their fortitude to stand up and buy when things feel bad – an action which is usually but not always the correct course...
The penultimate day of the trading week saw local stocks stage a strong recovery and we commence today’s session with the index down less than 0.5% for the week, what Chinese property panic! The market enjoyed broad based buying yesterday with over 80% of stocks rallying led by the Energy and IT names although impressively all 11 sectors managed to post gains. The re-opening / economic recovery trade came back into focus as NSW’s vaccination rate continues to increase above all but the most optimistic expectations, at the current pace 90% of the eligible population...
Wednesday saw the ASX200 rally strongly from early sharp losses after the PBOC (China’s central bank) injected more Yuan than anticipated into its banking system coupled with embattled property group Evergrande announcing it would make an interest payment today – the latter is a small step along a long journey but the action out of Beijing implies the communist party intends to “manage” the situation. The market reaction wasn’t so much one of huge “risk on” as opposed to a strong bounce / sigh of relief after a tough period with the recovery most noticeable in the large cap iron ore names:
The ASX200 staged a strong recovery yesterday after initially taking Septembers sell-off to 343-points / 4.6%, coincidentally testing our 7200 target area in the process. Ultimately Tuesday was a frustrating session for MM as we sat poised to increase risk into the pullback but our targeted purchases all fell short of our ideal levels discussed in recent reports. We must always remember that investing is rarely a perfect science and our main focus running into October will be more around whether MM pays up...
The ASX200 was hit hard on Monday falling by more than 2% on very broad based selling. The only pocket of strength coming from the utilities sector which benefited from yet more corporate activity from cashed up foreign investors, this time Canada’s Brookfield took aim at AusNet Services (AST) which is involved in electricity & gas distribution in Victoria elevating the stock by ~20%. There is certainly cash around for critical infrastructure assets that can lock in long term funding at attractive rates.
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