Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

ASX 200 afternoon report: 26 September 2023

Your ASX 200 afternoon report.

Source: Bloomberg

The ASX 200 trades 38 points (-0.54%) lower at 7038 at 2:30 pm AEST.

Wall Street's remarkable Monday streak

Business as usual on Wall Street overnight as the benchmark S&P 500 closed higher for the twelfth Monday in a row. The rally came despite yields on the US 10-year Treasury rising to their highest level in sixteen years, following a comment from Moody's that a government shutdown would be credit negative for the US sovereign rating.

ASX 200's resilience amidst Wall Street uncertainty

What is driving the Monday rally phenomenon on Wall Street isn't abundantly clear. However, from the opening bell this morning, it was clear that the ASX 200 was in no mood to slavishly follow Wall Street higher as it has done most Tuesdays in recent months. This sentiment was reinforced as US yields rose to fresh highs during the Asian morning, causing equity futures to give back all their overnight gains and more.

With just three full trading days left in September, the ASX 200 is down 1.09% MTD, on track for its second consecutive monthly fall. However, the soft performance at an index level is dwarfed by falls in the interest rate-sensitive ASX Real Estate and IT sectors, down over 5% in September.

The ASX 200 market movements today

IT sector

  • Megaport: -2.56% to $11.03
  • Link: -2.27% to $1.40
  • Nextdc: -1.89%
  • Wisetech Global: -1.72% to $66.77

Real estate sector

  • Centuria Capital: -2.74% to $1.42
  • Lend Lease: -2.44% to $6.98
  • Charter Hall: -1.65% to $9.64

Mining sector

Reports yesterday that Chinese property developer Evergrande Group canceled a creditor's meeting made for treacherous conditions today for the big miners following a 4.2% fall in the iron ore price overnight.

  • Rio Tinto: -2.06% to $110.85
  • Fortescue: -2% to $20.12
  • Mineral Resources: -1.89% to $67.09
  • BHP: -1.74% to $43.33

Banking sector

Tomorrow sees the release of the Monthly CPI indicator in Australia, which is expected to rise from 4.9% YoY in August to 5.2%. Much higher than 5.4%, and the market may start to think more seriously about an RBA rate hike in November.

  • Westpac: -0.38% to $21.04
  • NAB: -0.28% to $28.79
  • CBA: -0.23% to $99.65
  • ANZ: +0.32% to $25.06

Uranium sector

The Uranium price has surged above $70 per pound, its highest level since Japan's Fukushima disaster in 2011, on concerns about tight supply.

  • Deep Yellow soared 5.81% to $1.28
  • Bannerman Energy gained 3.62% to $2.86
  • Paladin Energy rose by 3.83% to $1.08

Qantas faces challenges

The share price of Qantas fell to a fresh 12-month low of $5.06 as the embattled airline warned that higher fuel prices would add to costs and as the pilot's union called for the resignation of Chairman Richard Goyder.

ASX 200 technical analysis

Unless US stock indices cascade much below the 4250/20 support zone noted above, we suspect the ASX 200 will base ahead of year-to-date lows in the 7000/6900 area. We favor using further weakness into month-end to open longs near the 7000/6900 support area. Stops on the view would be placed on a sustained close below 6900.

If support at 6900 gives way, expect to see a test of interim support at 6750 before a push towards the 2022 lows at 6400.

ASX 200 daily chart

Source: TradingView

  • TradingView: the figures stated are as of September 26, 2023. 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 Australia Pty Ltd. 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.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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.