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The ASX200 trades 105 points higher at 6755 at 3.15 pm Sydney time with all sectors in the green.
After a promising start to the new week ended in disappointment yesterday, the ASX200 has today traded to its highest level in five weeks at 6775.4, supported by a robust overnight session on Wallstreet.
The rally on Wallstreet follows apparent confirmation that gas supply to Europe via the Nord Stream 1 would soon resume. And better-than-expected U.S Q2 earnings reports that have (for now) eased concerns over an imminent slowdown.
The high beta tech sector has led the rampage higher, with Megaport the best on ground, adding 23% to $7.95 after the company reported EBITDA profit in Q4 for the first time. Elsewhere, ZIP added 11% to $0.66c, Tyro Payments added 7.5% to $0.71c. Appen added 6.6% to $6.28 and Wisetech Global added 5.5% to $44.43.
Looking to snap a six-week losing streak, the Materials Sector added 2.36%. Mineral Resources added 5.25% to $47.54, FMG added 4.76% to 4.64, South32 added 4.12% to $3.54 while index heavyweight BHP added 1.94% to $37.72
Gains also for Consumer Discretionary stocks following a bumper trading update from J.B. Hi-Fi yesterday. JB Hi-Fi added 4.5% to $43.64, Harvey Norman added 4.2% to $4.20. Flight Centre added 2.6% to $17.66, Wesfarmers added 1.7% to $46.92 and Webjet added 2% to $5.45.
Bank stocks have benefitted from a continued rebound in the U.S. banking sector and after Westpac bumped higher both its fixed and variable rates. Macquarie added 4.46% to $174.30, Westpac added 1.4% to $20.59, CBA added 1.2% to $96.07 and NAB added 0.7% to $29.26. The ANZ shares remain in a trading halt as it finalised its book build to buy Suncorp.
In the Lithium space, it was Liontown Resource's turn to notch double-digit gains as it climbed 10% to $1.12. Galan Resources added 8% to $1.07, Iluka Resources added 6.7% to $9.21, Core Lithium added 5.4% to $0.98, Pilbara added 4% to $2.46
Turning to the charts, the ASX200 has edged into the bottom of a resistance band between 6750/6950 that it needs to recover above to negate the technical damage caused by the breakdown in June. Until this occurs, the rally from the 6407 low is viewed as a bear market rally.
Source Tradingview. The figures stated are as of July 20th, 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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