The last 3-days saw the ASX200 take a 270-point / 3.9% hammering as it followed global equities sharply lower after the US CPI inflation numbers came in well ahead of expectations dashing the markets increasing hopes that the Fed will ease off any time soon from its aggressive hiking path.
The ASX200 went on a rollercoaster ride last week with major swings in both directions as volatility reigned supreme, we saw a clear week of 2 halves with a strong rally on Friday ultimately resulting in a +1% gain for the index over the 5-days - a very impressive outcome considering where stocks finished up on Wednesday. In typical fashion post Covid it was central banks which drove the significant swings in market sentiment across stocks, bond yields, FX and commodity prices.
The ASX200 was clobbered last week firstly by last Fridays extremely hawkish statement from Jerome Powell out of Jackson Hole, which sent US 2-year bond yields to 15-year highs, plus the news’s later in the week that China had locked down a city of 21 million people following an outbreak of just 1,000 Covid cases – NSW had 4,169 reported cases yesterday and we’re now even allowing internal flights without masks! Resource stocks were some of the worst hit over the week, especially in the last few days, as iron ore hit a 10-month low and copper looks destined to test its 2-year low:
The ASX200 experienced a very choppy week as is common through reporting season with 8 stocks in the ASX 200finishing the week up by more than 10% while 7 companies disappointed investors by similarly registering double digit losses. It felt like a volatile week due to the significant swings on the stock level but the index itself only closed down just 10-points following Fridays solid session as we saw a very impressive period for the resources companies offset by weakness in the consumer staples & discretionary, communication and financial stocks – we remain in a market that feels comfortable to aggressively rotate between stocks & sectors but it has no interest increasing or decreasing its overall exposure to equities.
The ASX200 felt tired for much of last week but it still managed to rally & close at fresh 10-week highs courtesy of some solid buying across the resources stocks e.g. Whitehaven Coal (WHC) +11.2%, BHP Group (BHP) +7%, South32 (S32) +3.5% and IGO Ltd (IGO) +2.7%. Conversely 2 sectors which weigh on the index and general sentiment dragged the chain
The ASX200 struggled last week considering the theoretically strong tailwind from a weak US CPI print and no major blow-ups from the local reporting season, the index did manage to scale fresh 9-week highs but by Fridays close it had only managed to close up +0.2%. The Resources Sector helped keep the index in positive territory, significantly assisted by BHP’s bid for OZ Minerals (OZL), but what probably caught most investors off-guard was a more than 2% pullback by the tech & healthcare sectors even after the deceleration by the main US inflation indicator.
The ASX200 rallied another +1% last week but the upside momentum is slowly waning although we still enjoyed more than 80% of sectors closing in positive territory, the Tech Sector led the line rallying +3.25%. The month to month stock & sector rotation continues to dominate proceedings under the hood e.g. the Energy Sector has been the standout of 2022 yet now it finds itself almost friendless while the hammered growth names are rallying akin a popping champagne cork, last week illustrated this perfectly:
The ASX200 rallied over 150-points last week taking the local markets gain to more than +5% in just 2-weeks, investors switched in earnest from defensive stocks & sectors just in time for MM to trim a few positions as indices reached our initial target for July. Interestingly it wasn’t the tech stocks which benefited on falling yields as the market continues look beyond the obvious, or perhaps simply 6-months in advance i.e. resources benefitted on the premise that central banks would be easing off on the rate hikes to avoid a recession.
The ASX200 enjoyed a strong week which saw the index rally +2.8% making fresh 5-week highs in the process, the Tech and Financials led the charge while only the defensive facing Healthcare and Consumer Staples Sector slipped slightly lower i.e. “risk on” has kicked back into vogue with a vengeance. However as we alluded to on Friday MM still labels the current advance as a likely “short squeeze” as opposed to fund managers calling a meaningful market bottom...
The ASX200 experienced another choppy week which threatened to break out on both the up and downside, but after 2-weeks the broad market remains basically unchanged for July. However under the hood the market's throwing up some interesting sector rotation, when we consider the extremely hawkish economic data we’ve received from a different number of countries, the outperformance by the likes of tech and healthcare suggests investors are tweaking their portfolios towards “peak inflation” occurring around now, and a possible recession in 2023, the following moves so far this month are certainly pointing this way:
The ASX200 went on a rollercoaster ride last week with major swings in both directions as volatility reigned supreme, we saw a clear week of 2 halves with a strong rally on Friday ultimately resulting in a +1% gain for the index over the 5-days - a very impressive outcome considering where stocks finished up on Wednesday. In typical fashion post Covid it was central banks which drove the significant swings in market sentiment across stocks, bond yields, FX and commodity prices.
The ASX200 was clobbered last week firstly by last Fridays extremely hawkish statement from Jerome Powell out of Jackson Hole, which sent US 2-year bond yields to 15-year highs, plus the news’s later in the week that China had locked down a city of 21 million people following an outbreak of just 1,000 Covid cases – NSW had 4,169 reported cases yesterday and we’re now even allowing internal flights without masks! Resource stocks were some of the worst hit over the week, especially in the last few days, as iron ore hit a 10-month low and copper looks destined to test its 2-year low:
The ASX200 experienced a very choppy week as is common through reporting season with 8 stocks in the ASX 200finishing the week up by more than 10% while 7 companies disappointed investors by similarly registering double digit losses. It felt like a volatile week due to the significant swings on the stock level but the index itself only closed down just 10-points following Fridays solid session as we saw a very impressive period for the resources companies offset by weakness in the consumer staples & discretionary, communication and financial stocks – we remain in a market that feels comfortable to aggressively rotate between stocks & sectors but it has no interest increasing or decreasing its overall exposure to equities.
The ASX200 felt tired for much of last week but it still managed to rally & close at fresh 10-week highs courtesy of some solid buying across the resources stocks e.g. Whitehaven Coal (WHC) +11.2%, BHP Group (BHP) +7%, South32 (S32) +3.5% and IGO Ltd (IGO) +2.7%. Conversely 2 sectors which weigh on the index and general sentiment dragged the chain
The ASX200 struggled last week considering the theoretically strong tailwind from a weak US CPI print and no major blow-ups from the local reporting season, the index did manage to scale fresh 9-week highs but by Fridays close it had only managed to close up +0.2%. The Resources Sector helped keep the index in positive territory, significantly assisted by BHP’s bid for OZ Minerals (OZL), but what probably caught most investors off-guard was a more than 2% pullback by the tech & healthcare sectors even after the deceleration by the main US inflation indicator.
The ASX200 rallied another +1% last week but the upside momentum is slowly waning although we still enjoyed more than 80% of sectors closing in positive territory, the Tech Sector led the line rallying +3.25%. The month to month stock & sector rotation continues to dominate proceedings under the hood e.g. the Energy Sector has been the standout of 2022 yet now it finds itself almost friendless while the hammered growth names are rallying akin a popping champagne cork, last week illustrated this perfectly:
The ASX200 rallied over 150-points last week taking the local markets gain to more than +5% in just 2-weeks, investors switched in earnest from defensive stocks & sectors just in time for MM to trim a few positions as indices reached our initial target for July. Interestingly it wasn’t the tech stocks which benefited on falling yields as the market continues look beyond the obvious, or perhaps simply 6-months in advance i.e. resources benefitted on the premise that central banks would be easing off on the rate hikes to avoid a recession.
The ASX200 enjoyed a strong week which saw the index rally +2.8% making fresh 5-week highs in the process, the Tech and Financials led the charge while only the defensive facing Healthcare and Consumer Staples Sector slipped slightly lower i.e. “risk on” has kicked back into vogue with a vengeance. However as we alluded to on Friday MM still labels the current advance as a likely “short squeeze” as opposed to fund managers calling a meaningful market bottom...
The ASX200 experienced another choppy week which threatened to break out on both the up and downside, but after 2-weeks the broad market remains basically unchanged for July. However under the hood the market's throwing up some interesting sector rotation, when we consider the extremely hawkish economic data we’ve received from a different number of countries, the outperformance by the likes of tech and healthcare suggests investors are tweaking their portfolios towards “peak inflation” occurring around now, and a possible recession in 2023, the following moves so far this month are certainly pointing this way:
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