Last week was a choppy affair for the ASX200, which, even after Friday's aggressive 0.87% sell-off, still closed up 0.84% courtesy of a storming week for the financials. The action on the stocks/sector level remains more interesting than the too often tracked index, with the financials advancing +4.1% while the utilities, energy and tech sectors retreated 4.4%, 3.9% and 3.5%, respectively. We remain net bullish on the market into 2025, but if you’ve backed the wrong horse, it's still likely to be a tough ride.
Overseas indices were firm into the weekend, with European bourses setting the tone early, with the EURTO STOXX 50 gaining +0.68% and the German DAX +0.85%. In the US, the S&P500 closed above 5800 for the first time as the banking behemoths ushered in a promising start to the third-quarter earnings season by powering it and the Dow to fresh highs. A distinct broadening of the performance barometer saw JP Morgan Chase (JPM US) rise +4.4% after topping profit and revenue expectations, while Wells Fargo (W US) popped +5.6% on stronger-than-expected profits. Interestingly, Investors overlooked disappointing revenue and an 11% decline in net interest income.
Last week, the AX200 slipped -0.76% following weakness across the influential financial and materials sectors, and only the energy stocks encouraged the bulls. While China enjoyed its Golden Week holiday, investors’ attention reverted to the mounting tensions in the Middle East ahead of last night’s US employment data, which ultimately alleviated market fears about the health of the US economy. The winners & losers were an eclectic bunch this week as most sectors, outside of oil, went into a holding pattern
Last week, the AX200 edged up just +0.03%, but on the stock and sector level, it was anything but a quiet five days for local equities. The Materials Sector soared +9.4% while the financials fell 4.4% as major economic stimulus out of Beijing ignited optimism that the PBOC can reinvigorate the world's 2nd largest economy; the banks, after their impressive gains through 2024, were used as a funding vehicle. Also, we shouldn’t forget the extreme market overcrowded positioning, which led to last week's aggressive performance reversion plus, of course, Beijing’s new “whatever it takes” approach
Last week, the ASX200 advanced another +1.35%, taking the index to all-time highs. Gains were broad-based, with 8 of the main 11 sectors advancing by over 1.4%, while only the healthcare stocks weighed noticeably on the index. There was also some reversion evident with lithium and uranium plays surrendering some of last week's gains while the banks returned to the winners enclosure:
The ASX200 advanced +1.5% last week (inclusive of dividends) as the Materials Sector bounced back with a bang, while the high-flying financials were the only meaningful drag on the index. The out-of-favour commodities took it in turns to squeeze the shorts last week, with the lithium stocks soaring on Wednesday, passing the baton to uranium on Thursday, followed by coal and gold on Friday, ultimately delivering an impressive +6.2% gain for the Materials Sector over the week
The ASX200 slipped 1% last week, with Wednesday's +150-point plunge dominating the five days. Again, the rate-sensitive banks, real estate, and tech sectors stemmed the losses, but the broad market fell, with the sellers again paying particular attention to China-facing stocks. Last night, recession fears hit US tech and consumer discretionary sectors the hardest; the real estate stocks held firm on interest rate hopes, illustrating the fascinating landscape ahead into Christmas – it would catch traders off guard if China growth sentiment trumped that of the US into 2025, its certainly at a low point today!
The ASX200 advanced another +0.85% last week, closing less than 1% below its all-time high. The upside momentum has slowed slightly but investors appetite remains into any semblance of a dip. Over the week only 5 of the 11 sectors advanced but gains of more than 2% by the real estate and financial sectors was more than enough to offset dips of over 1% by the tech and consumer discretionary names. The week was company dominated with economic news relatively thin on the ground
Jerome Powell signaled in his speech from Jackson Hole that interest rate cuts lay ahead, although he didn’t provide any details on when or how big the moves would be. The US credit markets are still pricing in 8 rate cuts by this time next year, with the FED Chair’s much-anticipated speech having little impact on expectations for the path of rate cuts into/through 2025. It’s a shame things aren’t as clear-cut for Michele Bullock and the RBA.
Most major overseas indices finished the week in a positive fashion. In Europe, the EURO STOXX 50 advanced +0.7%, although the UK FTSE did slip -0.43%. in the US. The S&P500 rose on Friday as investors advanced +0.2% to finish the best week of 2024 by adding to the recovery from the markets’ violent rout at the start of August. Following this week’s comeback, the S&P 500 is now just 2% away from its mid-July record high. Earnings continue to show strength as the latest reports trickle in, and around 93% of S&P500 companies had posted results as of Friday afternoon, according to FactSet. Of those, more than 78% have surpassed Wall Street’s expectations
Overseas indices were firm into the weekend, with European bourses setting the tone early, with the EURTO STOXX 50 gaining +0.68% and the German DAX +0.85%. In the US, the S&P500 closed above 5800 for the first time as the banking behemoths ushered in a promising start to the third-quarter earnings season by powering it and the Dow to fresh highs. A distinct broadening of the performance barometer saw JP Morgan Chase (JPM US) rise +4.4% after topping profit and revenue expectations, while Wells Fargo (W US) popped +5.6% on stronger-than-expected profits. Interestingly, Investors overlooked disappointing revenue and an 11% decline in net interest income.
Last week, the AX200 slipped -0.76% following weakness across the influential financial and materials sectors, and only the energy stocks encouraged the bulls. While China enjoyed its Golden Week holiday, investors’ attention reverted to the mounting tensions in the Middle East ahead of last night’s US employment data, which ultimately alleviated market fears about the health of the US economy. The winners & losers were an eclectic bunch this week as most sectors, outside of oil, went into a holding pattern
Last week, the AX200 edged up just +0.03%, but on the stock and sector level, it was anything but a quiet five days for local equities. The Materials Sector soared +9.4% while the financials fell 4.4% as major economic stimulus out of Beijing ignited optimism that the PBOC can reinvigorate the world's 2nd largest economy; the banks, after their impressive gains through 2024, were used as a funding vehicle. Also, we shouldn’t forget the extreme market overcrowded positioning, which led to last week's aggressive performance reversion plus, of course, Beijing’s new “whatever it takes” approach
Last week, the ASX200 advanced another +1.35%, taking the index to all-time highs. Gains were broad-based, with 8 of the main 11 sectors advancing by over 1.4%, while only the healthcare stocks weighed noticeably on the index. There was also some reversion evident with lithium and uranium plays surrendering some of last week's gains while the banks returned to the winners enclosure:
The ASX200 advanced +1.5% last week (inclusive of dividends) as the Materials Sector bounced back with a bang, while the high-flying financials were the only meaningful drag on the index. The out-of-favour commodities took it in turns to squeeze the shorts last week, with the lithium stocks soaring on Wednesday, passing the baton to uranium on Thursday, followed by coal and gold on Friday, ultimately delivering an impressive +6.2% gain for the Materials Sector over the week
The ASX200 slipped 1% last week, with Wednesday's +150-point plunge dominating the five days. Again, the rate-sensitive banks, real estate, and tech sectors stemmed the losses, but the broad market fell, with the sellers again paying particular attention to China-facing stocks. Last night, recession fears hit US tech and consumer discretionary sectors the hardest; the real estate stocks held firm on interest rate hopes, illustrating the fascinating landscape ahead into Christmas – it would catch traders off guard if China growth sentiment trumped that of the US into 2025, its certainly at a low point today!
The ASX200 advanced another +0.85% last week, closing less than 1% below its all-time high. The upside momentum has slowed slightly but investors appetite remains into any semblance of a dip. Over the week only 5 of the 11 sectors advanced but gains of more than 2% by the real estate and financial sectors was more than enough to offset dips of over 1% by the tech and consumer discretionary names. The week was company dominated with economic news relatively thin on the ground
Jerome Powell signaled in his speech from Jackson Hole that interest rate cuts lay ahead, although he didn’t provide any details on when or how big the moves would be. The US credit markets are still pricing in 8 rate cuts by this time next year, with the FED Chair’s much-anticipated speech having little impact on expectations for the path of rate cuts into/through 2025. It’s a shame things aren’t as clear-cut for Michele Bullock and the RBA.
Most major overseas indices finished the week in a positive fashion. In Europe, the EURO STOXX 50 advanced +0.7%, although the UK FTSE did slip -0.43%. in the US. The S&P500 rose on Friday as investors advanced +0.2% to finish the best week of 2024 by adding to the recovery from the markets’ violent rout at the start of August. Following this week’s comeback, the S&P 500 is now just 2% away from its mid-July record high. Earnings continue to show strength as the latest reports trickle in, and around 93% of S&P500 companies had posted results as of Friday afternoon, according to FactSet. Of those, more than 78% have surpassed Wall Street’s expectations
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
Verication email sent.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
!
Invalid One Time Password
Please check you entered the correct info, please also note there is a 10minute time limit on the One Time Passcode
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
