ASX200 Afternoon Report September 21st Sep 2022
The ASX200 trades 105 points lower (-1.54%) at 6701 at 3.00 pm Sydney time.
Share this:
The ASX200 trades 105 points lower (-1.54%) at 6701 at 3.00 pm Sydney time.
The ASX200 has fallen to a two-month low today as traders brace for the worst and hope for the best ahead of tomorrow’s FOMC meeting.
The worst is a dreaded 100 bp rate hike which the market assigns a probability of 25% towards and would mark an intensification of the Federal Reserves’ battle to tame suborn inflation. The best – is a 75 bp rate hike which may be the catalyst for a relief rally.
Compounding today’s fall, the ASX200 is closed tomorrow for the Queens public holiday, restricting traders’ ability to react immediately to any fallout from the FOMC meeting.
The unrelenting march higher in U.S yields this week has weighed on the Interest rate-sensitive Real Estate Sector led by Domain Group, which fell 3.1% to $3.14, Mirvac group fell 2.9% to $2.03, and REA Group fell 2.9% to $119.27.
Also suffering under the strain of higher interest rates, the tech sector was pummelled. Sezzle fell 6.78% to $0.55c, its lowest level since late July. Zip fell 4.5% to $0.74c, Life360 fell 4.8% to $5.36 and Megaport fell 4.4% to $7.36.
A slump in the price of iron ore back towards $96.00 per tonne has weighed on iron ore behemoth FMG, which fell 3.82% to $16.64, Rio Tinto fell 3.25% to $91.62, BHP dropped 2.9% to $38.04, and Mineral Resources fell 2.11% to $70.07.
The big banks caught in a mood of risk aversion have bathed in a sea of red. NAB fell 1.4% to $29.79, CBA fell 1.3% to $95.25, ANZ fell 1.25% to $23.54, and Westpac fell 0.9$ to $21.68.
Supported by the price of thermal coal, trading around a record $440 per tonne and a proposed share buyback, Whitehaven coal added 5.27% to $9.09, and New Hope Corp added 4% to $6.18.
The view remains that the ASX200 has entered a period of sideways choppy range trading until the start of November. However, downside risks would escalate if the Fed delivers a 100bp rate hike tomorrow.
Source Tradingview. The figures stated are as of September 21st, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
The ASX200 trades 105 points lower (-1.54%) at 6701 at 3.00 pm Sydney time.
The ASX200 has fallen to a two-month low today as traders brace for the worst and hope for the best ahead of tomorrow’s FOMC meeting.
The worst is a dreaded 100 bp rate hike which the market assigns a probability of 25% towards and would mark an intensification of the Federal Reserves’ battle to tame suborn inflation. The best – is a 75 bp rate hike which may be the catalyst for a relief rally.
Compounding today’s fall, the ASX200 is closed tomorrow for the Queens public holiday, restricting traders’ ability to react immediately to any fallout from the FOMC meeting.
The unrelenting march higher in U.S yields this week has weighed on the Interest rate-sensitive Real Estate Sector led by Domain Group, which fell 3.1% to $3.14, Mirvac group fell 2.9% to $2.03, and REA Group fell 2.9% to $119.27.
Also suffering under the strain of higher interest rates, the tech sector was pummelled. Sezzle fell 6.78% to $0.55c, its lowest level since late July. Zip fell 4.5% to $0.74c, Life360 fell 4.8% to $5.36 and Megaport fell 4.4% to $7.36.
A slump in the price of iron ore back towards $96.00 per tonne has weighed on iron ore behemoth FMG, which fell 3.82% to $16.64, Rio Tinto fell 3.25% to $91.62, BHP dropped 2.9% to $38.04, and Mineral Resources fell 2.11% to $70.07.
The big banks caught in a mood of risk aversion have bathed in a sea of red. NAB fell 1.4% to $29.79, CBA fell 1.3% to $95.25, ANZ fell 1.25% to $23.54, and Westpac fell 0.9$ to $21.68.
Supported by the price of thermal coal, trading around a record $440 per tonne and a proposed share buyback, Whitehaven coal added 5.27% to $9.09, and New Hope Corp added 4% to $6.18.
The view remains that the ASX200 has entered a period of sideways choppy range trading until the start of November. However, downside risks would escalate if the Fed delivers a 100bp rate hike tomorrow.
- Open a Forex.com account, or log in if you’re already a customer.
- Search for the pair you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Brazil Elections: Is Investor Confidence Beginning to Fade?
One of the most relevant events for emerging markets in recent sessions has been the outcome of Brazil’s presidential election. Following Lula da Silva’s victory in the second round, investor sentiment began to deteriorate noticeably. This can be observed in both the iShares MSCI Brazil ETF and the VanEck Brazil Small-Cap ETF, two important benchmarks for tracking the Brazilian equity market, both of which have posted declines of more than 15% at the start of the week.
ASX 200 Outlook: A Rates Trade Disguised as a Stock Market?
Australian bond futures have exhibited a far stronger relationship with the ASX 200 than Wall Street over recent months. Now both markets are displaying remarkably similar price structures.
Dow Jones Analysis: Is the DJIA Making a Comeback?
Recent trading sessions have become increasingly relevant for the Dow Jones, as the index has started to regain bullish momentum heading into the end of the week. Over the last three sessions, the DJIA has advanced by more than 0.6%, allowing buying pressure to regain prominence and raising the possibility of a more consistent short-term recovery.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.