ASX200 Afternoon Report September 5th 2022

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The ASX200 trades 14 points higher at 6843 at 3.00 pm Sydney time.

Shrugging off a 300-point fall in the Dow Jones on Friday night, the ASX200 has snapped a three-day losing streak, supported by gains in the Energy Sector as Europe’s energy crisis took a turn for the worse over the weekend.

The Nord Stream pipeline that supplies Russian Gas to Germany and other European nations was shut down last week for three days of “maintenance.”

Over the weekend, Russia’s Gazprom announced that the pipeline would be closed indefinitely as Russia continues to weaponize energy supplies ahead of the cooler winter months propelling ASX-listed coal miners higher.

Whitehaven coal surged to all-time highs after adding 7% to $8.53. Fresh cycle highs for New Hope as it added 6% to $5.41. Coronado added 4.8% to $1.69 while Yancoal bucked the trend falling 1% to $6.34.

A 2% rise in the price of crude oil ahead of tonight’s OPEC meeting, which may see a cut in production to counter a supply boost from Iran, behind a 5.2% rise today in the Beach Energy share price to $1.72. Woodside added 3.75% to $34.91, and Santos added 3% to $7.96. 

A 2% gain in iron ore futures on the Chinese futures exchange has helped BHP recover ground lost last week as it added 2.64% to $37.72. Rio Tinto added 1.7% to $91.72, South32 added 3.38% to $4.14. FMG fell 4.91% to $16.35 after trading ex-dividend. 

If the IT sector was hoping for some relief from the U.S bond market closed for the Labour Day long weekend, it wasn’t to be.

Sezzle fell 6.7% to $0.58c on the news it will be dumped from the All-Technology index next month, Block fell 2.6% to $98.38, Zip fell 0.6% to $0.86c as it faces life outside of the ASX200 following a sharp fall in its market cap. Elsewhere, Life 360 fell 3.7% to $4.94, and Tyro Payments fell 2.55% to $0.95c.

Some pre-RBA Board meeting nerves in the Financial Sector today ahead of an expected 50bp rate hike tomorrow that will take the cash rate to 2.35% heaping more pressure on mortgage holders and the housing market. NAB fell 0.88% to $30.27, ANZ fell 0.66% to $22.60, CBA fell 0.7% to $96.25, and WBC fell 0.51% to $21.28.

A horrible day for travel stocks and travellers on news that Dnata baggage handlers are set to strike and after four thousand Jetstar passengers were reported grounded in Bali after engineering problems. Qantas fell 3.88% to $5.08, Flight Centre fell 3.11% to $16.84, and Webjet fell 2.3% to $5.28. 

The ASX200 needs to reclaim 7000 to suggest the pullback from the 7137 high is complete; until then, the risks are to the downside.

AS200 Daily chart 5th of September

Source Tradingview. The figures stated are as of September 5th, 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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