Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

ASX 200 afternoon report: 22 October 2024

The ASX 200 has dropped as Wall Street setbacks and surging US Treasury yields weigh heavily on Australian stocks, impacting major sectors.

AUD Source: Adobe images

The ASX 200 trades 133 points (-1.60%) lower at 8210 at 3.15pm AEDT.

The ASX 200 has taken a significant hit in today’s session, heading for its worst performance since a 150-point drop in early September.

Wall Street woes and rising yields

Today's sell-off comes after the current pack leaders on Wall Street, the Dow Jones, and the S&P 500 slipped overnight, as investors moved to the sidelines after six weeks of gains and ahead of key earnings reports.

Adding to Wall Street's weakness, US Treasury yields rose overnight, ending 7 to 11 basis points (bps) higher across the curve. The benchmark US 10-year Treasury yield reached 4.18%, its highest level in three months.

Higher yields seem to reflect market expectations of a potential Trump election victory, with increased inflation and fiscal spending. Rubbing salt into the wound, US yields have continued to climb during the Asian trading session, with the yield on the US 10-year Treasury currently trading 3 bps higher at 4.21%.

Why does this impact the ASX 200?

According to S&P Global, the interest rate-sensitive ASX financial sector accounted for 46.6% of the ASX 200 as of 30 September. The real estate sector, a similarly rate-sensitive area, makes up 10.8%. Additionally, two consumer-facing sectors collectively account for another 10%. When combined, a significant 67% of the ASX 200 exhibits heightened sensitivity to interest rates and yields.

Open a free demo account to practice your trading strategy.

ASX 200 stocks

Real estate sector

The real estate sector fell 2.4%.

Banking sector

  • Macquarie fell 2.31% to $233.67
  • NAB dropped 2.03% to $38.62
  • CBA slipped 2% to $141.56
  • Westpac lost 1.85% to $31.91
  • ANZ eased 1.02% to $31.91

Consumer discretionary sector

Mining sector

Normally, when interest rate-sensitive sectors struggle, investors rotate into large miners but not today.

ASX 200 technical analysis

This week, the ASX 200 is challenging multi-week trend channel resistance between 8325 and 8330. A sustained break and close above this level could propel the index towards 8450 by year-end.

Conversely, a failure to see a sustained close above 8320/25 combined with a fall through support at 8110/00 would warn that a medium-term high has been struck at 8384.5 and that a deeper pullback is underway..

ASX 200 daily chart

ASX 200 daily chart Source: TradingView
ASX 200 daily chart Source: TradingView
See the latest trading opportunities in indices
  • Source: TradingView. The figures stated are as of 22 October 2024. 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.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Discover how to trade the markets

Learn how indices work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.

Try IG Academy

Put learning into action

Try out what you’ve learned in this index strategy article risk-free in your demo account.

Try it out

Ready to trade indices?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Get fixed spreads from 1 point on FTSE 100 and Germany 40
  • Protect your capital with risk management tools
  • Trade more 24-hour markets than any other provider
Create live account

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Log in now

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.