CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Why the ASX 200 gave up most of its gains on Thursday

‘Given its traded in the slipstream of US indices this week, the turn lower in US futures precipitated a drop for the ASX200 today.'

ASX 200 Thursday market wrap, Myer share price dives 17%

Buoyed by optimism from Wall Street overnight, the ASX 200 benchmark opened higher on Thursday – trading up to the 5,955.70 point level within the first hour of trade.

The Aussie benchmark eventually gave back the majority of those gains as the session wore on – finishing out the day at the 5,908 point level, well off the intraday high achieved during the morning session.

In spite of that volatility and as is always the case, there were pockets of optimism during the session, with Clinuvel, Goldroad and Vocus the best performing Australian equities; while Resolute, Mondale, and Scentre were the worst performing.

Myer witnessed even more pronounced share price declines – finishing out the session down 17% – after releasing what proved to be an evidently disappointing set of FY20 results to the market. Specifically, the iconic retailer reported that total sales had fallen 15.8% to $2,519.4 million in fiscal 2020; while earnings (EBITDA) dropped by a more substantial 41.6%, to $93.5 million.

Overall, the company posted a net loss after tax of $11.3 million.

Positively at least, Myer saw its online sales surge 61.1% to $422.5 million in FY20, with Myer's CEO and MD John King stressing that 'During the past two years, Myer has undertaken significant improvements to the website including enhancing infrastructure and peak capacity and improved search and check out functionality.'

Though online sales growth ranks as a distinct positive for the retailer, analysts from Citibank – who have a high risk, Buy rating on the stock, said:

‘We expect FY21 earnings to remain under pressure given their category mix and lack of wage subsidies beyond September 2020.’

Looking to explain what drove today’s broader market price action, IG Market Analyst, Kyle Rodda, postulated that:

‘Given its traded in the slipstream of US indices this week, the turn lower in US futures precipitated a drop for the ASX200 today. Like broader Asian markets, it was strong out of the gates for the index. But the momentum really failed to hold as the session wore-on.’

Before the market closed, Mr Rodda added that with:

‘The index is trading 0.1 per cent higher at time of writing, with the index looking vulnerable to further downside moving into the close, as support at 5900 gives way. For reasons that aren’t perfectly clear, it’s been the COVID-19 sensitive sectors that have weighed on the market.’

US futures in focus

At time of writing, US futures markets all traded in the green, with Nasdaq 100 futures up 37 points, S&P 500 futures up 4.25 points and Dow Junes futures up 36 points.

How to trade markets – long or short

You can use CFDs to trade both rising and falling markets, including currencies, equities and indices, through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) the ASX 200 using CFDs, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘ASX 200' in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

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.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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…

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.