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%!
The ASX200 managed to mildly higher last week, but it certainly felt worse after Friday's sharp drop, and there is more to come on Monday. While the press rotates its coverage between the largest IT outage in history and if/when Joe Biden will exit the November presidential race, the stock market had its own pronounced rotation underway. As financial markets priced in a Fed interest rate pivot come September, investors decided it was time to rejig portfolios in earnest – something MM has been discussing for a few weeks. On the ASX, we saw the rate of the sensitive/defensive sectors advance, led by real estate, at +1.7%, while the Materials and Tech Sectors dropped 2.2% and 1.8%, respectively. The moves were more pronounced on the stock level
The ASX200 finally popped to fresh all-time highs on Friday, and it looks set to deliver another stellar performance for July—we’re less than halfway through, and it's already up +2.5%. Over 80% of the main board helped lift the index towards the psychological 8000 level, with the rate-sensitive name leading the advance while the resources stocks continued to rein in the gains.
The ASX200 ended the first week of July up +0.7%, an encouraging performance considering the dip on Monday/Tuesday. The Energy and Materials Sectors led the gains, which weren’t broad-based, with seven of the market's eleven main sectors closing lower. At MM, we haven’t hidden our view that these two sectors are set to outperform through FY25. However, we’re very conscious that one week doesn’t change a trend—the previously high-flying tech and utilities sectors were the market's worst-performing sectors last week
The ASX200 finished the week down 0.4% but still managed to advance +0.9% for June; overall, local equities experienced another choppy week dominated by moves on the stock/sector level. However, while the index appeared to have experienced a fairly quiet week, it was a very different story in credit markets following the hotter-than-expected CPI spring on Wednesday:
The ASX200 closed unchanged on Thursday with no lead from overseas markets; most local traders simply sat back and watched the Guzman y Gomez (GYG) IPO commence trading. By the end of the day, GYG was up +36%, valuing the Mexican fast food chain at over $3bn. At MM, we thought it would open strongly, but that was above our bullish expectations. As we said yesterday, let's hope this reignites some confidence in both local capital markets and stocks in general.
The ASX200 market slipped lower throughout the shortened week, finally closing down -2%, after showing so much promise going into the long weekend. With the likes of BHP Group (BHP), RIO Tinto (RIO), Sandfire Resources (SFR) and South32 (S32) all making fresh multi-week lows, it was always going to be a tough ask for the resources-laden ASX200 to advance. Conversely, the less influential Tech Sector fared much better, with most major names advancing in unison with the US NASDAQ, which posted fresh all-time highs in most sessions over the 5-days.
The ASX200 market showed impressive resilience last week, rallying over 2%, inching ever closer to a new all-time high. The 8,000 milestone is now less than 2% away, a repeat performance, and we’re there. The strength should have encouraged the bulls, especially considering the market's ability to close on its highs for the week ahead of the US Jobs Report. However, the market continues to deliver very mixed results on the stock and sector level, with the resources likely to take their turn in the “naughty corner” at the start of next week after copper and gold tumbled on Friday night. NB: The ASX is closed Monday.
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%!
The ASX200 managed to mildly higher last week, but it certainly felt worse after Friday's sharp drop, and there is more to come on Monday. While the press rotates its coverage between the largest IT outage in history and if/when Joe Biden will exit the November presidential race, the stock market had its own pronounced rotation underway. As financial markets priced in a Fed interest rate pivot come September, investors decided it was time to rejig portfolios in earnest – something MM has been discussing for a few weeks. On the ASX, we saw the rate of the sensitive/defensive sectors advance, led by real estate, at +1.7%, while the Materials and Tech Sectors dropped 2.2% and 1.8%, respectively. The moves were more pronounced on the stock level
The ASX200 finally popped to fresh all-time highs on Friday, and it looks set to deliver another stellar performance for July—we’re less than halfway through, and it's already up +2.5%. Over 80% of the main board helped lift the index towards the psychological 8000 level, with the rate-sensitive name leading the advance while the resources stocks continued to rein in the gains.
The ASX200 ended the first week of July up +0.7%, an encouraging performance considering the dip on Monday/Tuesday. The Energy and Materials Sectors led the gains, which weren’t broad-based, with seven of the market's eleven main sectors closing lower. At MM, we haven’t hidden our view that these two sectors are set to outperform through FY25. However, we’re very conscious that one week doesn’t change a trend—the previously high-flying tech and utilities sectors were the market's worst-performing sectors last week
The ASX200 finished the week down 0.4% but still managed to advance +0.9% for June; overall, local equities experienced another choppy week dominated by moves on the stock/sector level. However, while the index appeared to have experienced a fairly quiet week, it was a very different story in credit markets following the hotter-than-expected CPI spring on Wednesday:
The ASX200 closed unchanged on Thursday with no lead from overseas markets; most local traders simply sat back and watched the Guzman y Gomez (GYG) IPO commence trading. By the end of the day, GYG was up +36%, valuing the Mexican fast food chain at over $3bn. At MM, we thought it would open strongly, but that was above our bullish expectations. As we said yesterday, let's hope this reignites some confidence in both local capital markets and stocks in general.
The ASX200 market slipped lower throughout the shortened week, finally closing down -2%, after showing so much promise going into the long weekend. With the likes of BHP Group (BHP), RIO Tinto (RIO), Sandfire Resources (SFR) and South32 (S32) all making fresh multi-week lows, it was always going to be a tough ask for the resources-laden ASX200 to advance. Conversely, the less influential Tech Sector fared much better, with most major names advancing in unison with the US NASDAQ, which posted fresh all-time highs in most sessions over the 5-days.
The ASX200 market showed impressive resilience last week, rallying over 2%, inching ever closer to a new all-time high. The 8,000 milestone is now less than 2% away, a repeat performance, and we’re there. The strength should have encouraged the bulls, especially considering the market's ability to close on its highs for the week ahead of the US Jobs Report. However, the market continues to deliver very mixed results on the stock and sector level, with the resources likely to take their turn in the “naughty corner” at the start of next week after copper and gold tumbled on Friday night. NB: The ASX is closed Monday.
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