ASX 200 afternoon report: July 11, 2023
Find out below who have been the shakers and movers in today’s session on the ASX 200.
The ASX 200 trades 80.50 points (1.15%) higher at 7084.50 at 2.45 pm AEST.
It's 'Turnaround Tuesday' for the ASX 200 today, as it snaps a four-day losing streak in emphatic fashion, with all eleven sectors trading higher. The rally follows news that China will increase support for its stalling economy after yesterday’s benign inflation data sparked fears of deflation.
The property market in China contributes to roughly 35% of the nation's steel demand. Though actions taken by the Chinese authorities to date merely offer tactical assistance to the distressed property sector, anticipation grows for additional, more supportive policies. These future initiatives may encompass lowering down payments, reducing agent commissions, and further relaxation of buying restrictions.
Iron Ore Miners
In a reversal of yesterday's losses, the major iron ore miners have posted gains:
- Fortescue: Up 1.7% to $21.59
- BHP: Up 1.24% to $43.25
- Rio Tinto: Up 1.08% to $111.65
Gains have been observed in the tech sector, led by Megaport:
- Megaport: Surged 21.4% to $8.15 after upping FY2023 earnings guidance
- EML Payments: Up 4.5% to $0.69
- Block (Owner of Afterpay): Up 4.17% to $103.08
- Seek: Up 2.84% to $22.83
Despite the RBA keeping rates on hold at 4.1% earlier this month, the Westpac consumer confidence index remains at “deeply pessimistic” levels in July.
- Adairs: Up 5.1% to $1.71
- Kogan: Up 3.6% to $5.18
- Domino’s Pizza: Up 3.4% to $46.55
- Nick Scali: Up 3.36% to $9.53
Last week's volatility in global bond markets, which saw the yield on the Australian 10-year bond spike to 4.315% – its highest level in over a decade – has eased, with the yield on the Aussie 10-year slipping back to 4.19%.
- ANZ: Up 1.9% to $23.70
- NAB: Up 1.64% to $26.06
- Macquarie: Up 1.5% to $173.80
- Westpac: Up 0.9% to $21.03
- CBA: Up 0.5% to $89.99
Propelled by prospects of further stimulus in China and production cuts by Russia and Saudi Arabia, gains have been observed in the energy sector:
- Crude Oil: Rally of 0.62% today to $73.55
- Beach Energy: Up 3.6% to $1.43
- Woodside Energy: Up 1% to $34.34
ASX 200 technical analysis
Following today’s bumper session, the ASX 200 has returned to the safety of its former range between 7390 and 7050ish. However, to confirm the downdraft of July is over, a rally above the 200-day moving average at 7143 is required.
ASX 200 daily chart
- TradingView: the figures stated are as of July 11, 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.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
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.