The ASX200 trades 33 points higher at 6995 at 3.15 pm Sydney time.
The ASX200 has staged a tepid recovery today after a round of better-than-expected earnings and after it worked off the extreme overbought readings that marked its advance from the June lows.
The recovery comes despite a nervous session on Wall Street overnight where the nightmares of the June sell-off revisited in the form of the toxic mix of rising bond yields and weaker economic data.
US PMI data, a reliable guide for signposting future economic growth, saw the manufacturing and services components fall sharply. Amplified by an alarming 12.6% (consensus: -2.5%) fall in New Home sales in July, evidence that higher rates are impacting sectors of the economy.
Comments from Saudi Arabia that indicated a cut to production should a nuclear deal with Iran lead to the return of sanctioned Iranian oil propelled the oil price and energy stocks higher. Woodside added 2.7% to $34.57, Origin Energy added 2.57% to $6.20, Beach Energy added 1.2% to $1.70, and Santos added 1% to $7.63.
The share price of Wisetech Global surged by 10.75% to $58.75 after a cracking earnings report. It was joined by Altrium, which extended its post-earnings rally by another 1.7% to $36.45, and Megaport added 1.65% to $8.00. EML payments slumped 11.5% to $0.88c after discovering fraudulent merchant activity.
A rally in metals prices overnight has helped copper miner OZ Minerals add 2.74% to $26.25, Mineral Resources added 1.46$ to $63.27, South32 added 1.94% to $4.20, and BHP added 0.94% to $41.85.
After four straight losing days, the Financial Sector found support as all four big banks gained. ANZ added 1.16% to $22.71, CBA added 0.5% to $97.53, NAB added 0.3% to $30.02 and Westpac added 0.3% to $21.24.
The share price of Coles has fallen 4.4% to $17.88 after noting rising costs and slowing sales. Woolworths fell 0.96% to $37.55, and Metcash fell 1.1% to $4.10.
The ASX200 ended last week, rejecting the expected 200-day moving average at 7152. Following this week's downside follow-through, I am looking for signs of basing ahead of wave equality at 6915 that would warn the market is setting up for another leg higher post-Jackson Hole.
Source Tradingview. The figures stated are as of August 24th, 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
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