ASX200 Afternoon Report September 20th 2022

The ASX200 trades 83 points higher (+1.24%) at 6803 at 3.30 pm Sydney time.

Casting aside yesterday’s nervous session, the ASX200 has surged today, encouraged by a brave rally on Wall Street overnight despite the yield on the U.S 2yr bond closing at 3.95%, its highest level in almost 15 years.

The ASX200 was emboldened further by the release of the RBA meeting minutes for the September Board meeting, which outlined the case for a slower pace or RBA rate rises into year-end to keep the economy on an “even keel”.

Music to the ears of the big banks with 55% of their asset books comprised of housing loans. CBA added 1.74% to $96.31, NAB added 1.7% to $30.20, Westpac added 1.5% to $21.87, and ANZ added 1.2% to $23.84.

The materials sector snapped a 4-day losing streak, boosted by an 8.8% rally in New Hope Corporation to $5.94 after it reported bumper FY 2022 earnings, including a 143.5% lift in revenues. Mineral Resources added 5% to $71.40, BHP added 2.86% to $38.89, and Rio Tinto added 1.75% to $93.99.

A rally in U.S airline stocks on Wall Street has supported gains in ASX-listed travel stocks. Webjet added 4.13% to $5.42, Corporate Travel added 2% to $19.16, Flight Centre added 1.6% to $16.31, and Qantas lifted 0.67% to $5.28.

A mixed day for tech stocks, warier than most of the potential fallout from Thursday’s FOMC meeting. Sezzle fell 1.67% to $0.59c. Life 360 fell 0.88% to $5.64, Afterpay owner Block fell 0.9% to $95.50. Altium gained 1.75% to $36.03 while Wisetech global added 1.5% to $57.40.

The comprehensive rejection from above 7000 last week, followed by today’s bounce from 6700, supports our view that the ASX200 has entered a period of choppy range trading until the start of November.

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