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
The ASX200 experienced yet another rollercoaster of a week, finally ending down -2.1%, but it was much worse before Friday's strong +1.25 broad-based bounce. However, the bulls mustn't get carried too away after the end-of-week jump; the index has only recovered around 30% of its sharp losses since the unwinding of the Yen “Carry Trade” sent shock waves through financial markets. Reporting season is starting to have an impact on major over/underperformers, but it's likely to be far more pronounced next week as things really get underway this week. Only the Utilities Sector finished last week in positive territory, with the Energy, Tech and Financial Sectors weighing heavily on the main index:
Overseas equities fell away on Friday night as recession fears increased, with the EURO STOXX 50 -2.7% and German DAX -2.3% leading the declines. In the US, it was another brutal night, with the S&P500 plunging 1.8% and the Dow over 600 points after the jobs report sent investors running for cover. Some tech megacap names saw heavy losses during the day after Amazon’s 2nd quarter results sparked investor concerns about Big Tech’s blowout levels of artificial intelligence-related (AI) capital spending. The e-commerce giant slid 8.8% after missing analyst estimates and issuing a disappointing forecast.
The week started with the news that Joe Biden had finally stepped aside for Kamala Harris to run against Trump; the odds of a Republican victory have shortened, but the Don remains the clear favourite. However, 100 days is a massive time in politics; everyone is now talking about Kamala Harris having a chance of victory just two weeks after Trump was shot in Pennsylvania. On Wednesday night, US tech stocks unravelled as earnings missed lofty expectations, e.g. Tesla shares (TSLA US) plunged over 12% on weaker-than-expected results, including a 7% drop in auto revenue year-on-year and Alphabet (GOOG US) suffered its worst day since January, falling 5% after YouTube advertising revenue fell below expectations. The NASDAQ finished the week down 2.6%, while the Russell 2000 small caps gained 3.5%!
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
The ASX200 experienced yet another rollercoaster of a week, finally ending down -2.1%, but it was much worse before Friday's strong +1.25 broad-based bounce. However, the bulls mustn't get carried too away after the end-of-week jump; the index has only recovered around 30% of its sharp losses since the unwinding of the Yen “Carry Trade” sent shock waves through financial markets. Reporting season is starting to have an impact on major over/underperformers, but it's likely to be far more pronounced next week as things really get underway this week. Only the Utilities Sector finished last week in positive territory, with the Energy, Tech and Financial Sectors weighing heavily on the main index:
Overseas equities fell away on Friday night as recession fears increased, with the EURO STOXX 50 -2.7% and German DAX -2.3% leading the declines. In the US, it was another brutal night, with the S&P500 plunging 1.8% and the Dow over 600 points after the jobs report sent investors running for cover. Some tech megacap names saw heavy losses during the day after Amazon’s 2nd quarter results sparked investor concerns about Big Tech’s blowout levels of artificial intelligence-related (AI) capital spending. The e-commerce giant slid 8.8% after missing analyst estimates and issuing a disappointing forecast.
The week started with the news that Joe Biden had finally stepped aside for Kamala Harris to run against Trump; the odds of a Republican victory have shortened, but the Don remains the clear favourite. However, 100 days is a massive time in politics; everyone is now talking about Kamala Harris having a chance of victory just two weeks after Trump was shot in Pennsylvania. On Wednesday night, US tech stocks unravelled as earnings missed lofty expectations, e.g. Tesla shares (TSLA US) plunged over 12% on weaker-than-expected results, including a 7% drop in auto revenue year-on-year and Alphabet (GOOG US) suffered its worst day since January, falling 5% after YouTube advertising revenue fell below expectations. The NASDAQ finished the week down 2.6%, while the Russell 2000 small caps gained 3.5%!
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