The first week of September proved to be a week to forget for the ASX200 as it fell -1.67%, with most of the weakness unfolding over the last three days. The sell-off was broad-based, with 10 of 11 sectors closing lower, with the Materials, Consumer Discretionary and Tech sectors faring the worst. In contrast, only the Energy Sector closed positive edging up just +0.6%. Under the hood, the falls were distorted in places by some significant names trading ex-dividend, but some of the movers which caught our attention over the week are as follows:
The ASX200 rallied over 200 points in the last few days of August but it was a step too far on Friday as local stocks drifted lower into the weekend, overall a good week that capped August's decline to just -1.4 %. Obviously, September has started off on the back foot but there are still 4-weeks to go before we can pass judgement as to whether this month will live up to its seasonal poor reputation. The index finally closed up +2.3% last week as we watched the end of the reporting season unfold over the 5 days, all 11 sectors closed up with the consumer Discretionary and heavyweight Materials & Financials leading the charge. A number of underperformers over the last year figured prominently in the winner's enclosure
The ASX200 ended just -0.5% lower last week but it was far more eventful on both the stock and sector level as reporting season and uncertain global indices continue to pull the market in different directions e.g. the Consumer Discretionary Sector advanced +1.8% while the Healthcare, Consumer Staples and the Utilities Sectors all fell well over -2%. However, it was on the stock level that Reporting Season lit up our screens in both directions, whatever company size or sector:
The ASX200 ended last week down another -2.6% taking August’s pullback to -3.5% with two weeks still remaining. Escalating concerns around the Chinese economy combined with an ever-hawkish Fed saw buyers run for the hills with the influential Financial & Materials Sectors standout detractors ending the week down -3.6% and -4.3% respectively. Only the Real Estate and Healthcare Sectors closed higher over the 5-days with positive earnings as the main drivers in both cases i.e. Goodman Group (GMG) +11% and Cochlear (COH) +11.9%.
The ASX200 ended the week up just 0.2% with much of the action unfolding on the sector level as would be expected during reporting season. The Consumer Discretionary Sector was the best on the ground closing up almost +2% as the market became more optimistic towards the global economy - JP Morgan & Bank of America both scrapped their recession calls this week i.e., the “Goldilocks” scenario. It was a rare week for this year to see the Tech Sector as the market's worst performer closing down -1.6% as investors started to reposition themselves for a brighter 2H. On the stock level, the big moves were dominated by reporting season plus a sprinkling of general news:
The ASX200 ended the week down only -1.1%, it certainly felt much worse over the course of the 5 days following the downgrade of US Debt by rating agency Fitch. The yield-sensitive sectors dragged the market lower with the Utilities -3.4% and Real Estate -2.5% dominating the loser's enclosure while only the Consumer Discretionary Sector closed higher. Longer-dated bond yields rallied into Friday's US Employment data which is likely to have weighed on both of these sectors which have been looking for an end to the hiking cycle by central banks – a reversal of this move by bonds following a pretty benign jobs report is likely to see the stocks/sectors also reverse.
Despite a weak session on Friday, the market enjoyed a solid five days up by an aggregate +1.23% hitting new five-month highs in the process. All sectors made gains however it was the Energy & Technology shares that did best, while the more defensive Healthcare & Staples were relative underperformers. The ASX 200 has now oscillated back up towards the top of its trading range, just 229pts/3% below its all-time high set nearly 2-years ago. Interestingly, the 7632 high achieved back in 2021 occurred during the height of full year reporting season, with this year's results period kicking off on Monday.
The ASX200 ended the week basically unchanged after drifting lower on Friday under the weight of heavy selling in the Tech Sector following a weak session in the US on Thursday. Over the 5 days activity was again focused under the market’s hood with strong gains by the Financials offset primarily by losses in the Resources. We saw 2 areas of macro-economic news which dictated the relative performance, firstly strong economic data, including employment numbers locally, saw bond yields rise and secondly ongoing weak growth numbers out of China weighed on an already struggling commodities market:
This week saw the US CPI print come in lower than expected turning financial markets on their head, suddenly “disinflation” became the new buzzword on Wall Street with US inflation plumbing its lowest level since March 2021 and US 2-year yields falling over 0.5% from last week’s high. Equities embraced the news with the ASX200 rallying +3.7% to its best weekly close since April with interest rate sensitive stocks/sectors leading the charge whereas the defensive end of town struggled on the relative front:
Global bond yields posted fresh multi-year highs last week with the hawkish move sending stock investors running for cover. The RBA and Fed may have hit the “pause button” in recent months but bond markets, following hawkish rhetoric from central banks, now believe they will need to hike again in 2023 to arrest inflation. The major problem for equities was that investors had positioned themselves for a pivot/top sooner rather than later and even some potential for rate cuts before Christmas – we always believed economists were dreaming to hope central banks would start cutting interest rates in 2023.
The ASX200 rallied over 200 points in the last few days of August but it was a step too far on Friday as local stocks drifted lower into the weekend, overall a good week that capped August's decline to just -1.4 %. Obviously, September has started off on the back foot but there are still 4-weeks to go before we can pass judgement as to whether this month will live up to its seasonal poor reputation. The index finally closed up +2.3% last week as we watched the end of the reporting season unfold over the 5 days, all 11 sectors closed up with the consumer Discretionary and heavyweight Materials & Financials leading the charge. A number of underperformers over the last year figured prominently in the winner's enclosure
The ASX200 ended just -0.5% lower last week but it was far more eventful on both the stock and sector level as reporting season and uncertain global indices continue to pull the market in different directions e.g. the Consumer Discretionary Sector advanced +1.8% while the Healthcare, Consumer Staples and the Utilities Sectors all fell well over -2%. However, it was on the stock level that Reporting Season lit up our screens in both directions, whatever company size or sector:
The ASX200 ended last week down another -2.6% taking August’s pullback to -3.5% with two weeks still remaining. Escalating concerns around the Chinese economy combined with an ever-hawkish Fed saw buyers run for the hills with the influential Financial & Materials Sectors standout detractors ending the week down -3.6% and -4.3% respectively. Only the Real Estate and Healthcare Sectors closed higher over the 5-days with positive earnings as the main drivers in both cases i.e. Goodman Group (GMG) +11% and Cochlear (COH) +11.9%.
The ASX200 ended the week up just 0.2% with much of the action unfolding on the sector level as would be expected during reporting season. The Consumer Discretionary Sector was the best on the ground closing up almost +2% as the market became more optimistic towards the global economy - JP Morgan & Bank of America both scrapped their recession calls this week i.e., the “Goldilocks” scenario. It was a rare week for this year to see the Tech Sector as the market's worst performer closing down -1.6% as investors started to reposition themselves for a brighter 2H. On the stock level, the big moves were dominated by reporting season plus a sprinkling of general news:
The ASX200 ended the week down only -1.1%, it certainly felt much worse over the course of the 5 days following the downgrade of US Debt by rating agency Fitch. The yield-sensitive sectors dragged the market lower with the Utilities -3.4% and Real Estate -2.5% dominating the loser's enclosure while only the Consumer Discretionary Sector closed higher. Longer-dated bond yields rallied into Friday's US Employment data which is likely to have weighed on both of these sectors which have been looking for an end to the hiking cycle by central banks – a reversal of this move by bonds following a pretty benign jobs report is likely to see the stocks/sectors also reverse.
Despite a weak session on Friday, the market enjoyed a solid five days up by an aggregate +1.23% hitting new five-month highs in the process. All sectors made gains however it was the Energy & Technology shares that did best, while the more defensive Healthcare & Staples were relative underperformers. The ASX 200 has now oscillated back up towards the top of its trading range, just 229pts/3% below its all-time high set nearly 2-years ago. Interestingly, the 7632 high achieved back in 2021 occurred during the height of full year reporting season, with this year's results period kicking off on Monday.
The ASX200 ended the week basically unchanged after drifting lower on Friday under the weight of heavy selling in the Tech Sector following a weak session in the US on Thursday. Over the 5 days activity was again focused under the market’s hood with strong gains by the Financials offset primarily by losses in the Resources. We saw 2 areas of macro-economic news which dictated the relative performance, firstly strong economic data, including employment numbers locally, saw bond yields rise and secondly ongoing weak growth numbers out of China weighed on an already struggling commodities market:
This week saw the US CPI print come in lower than expected turning financial markets on their head, suddenly “disinflation” became the new buzzword on Wall Street with US inflation plumbing its lowest level since March 2021 and US 2-year yields falling over 0.5% from last week’s high. Equities embraced the news with the ASX200 rallying +3.7% to its best weekly close since April with interest rate sensitive stocks/sectors leading the charge whereas the defensive end of town struggled on the relative front:
Global bond yields posted fresh multi-year highs last week with the hawkish move sending stock investors running for cover. The RBA and Fed may have hit the “pause button” in recent months but bond markets, following hawkish rhetoric from central banks, now believe they will need to hike again in 2023 to arrest inflation. The major problem for equities was that investors had positioned themselves for a pivot/top sooner rather than later and even some potential for rate cuts before Christmas – we always believed economists were dreaming to hope central banks would start cutting interest rates in 2023.
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