Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

GDP review and ASX 200 afternoon report: 1st of March 2023

ASX 200 market update and GDP review as of 1st March, 3.00 pm, Sydney time.

Source: Bloomberg

The ASX 200 trades six points higher (0.09%) at 7264 at 3 pm, Sydney time.

GDP review

The ASX 200 has rebounded from early losses following the release of weaker-than-expected Australian Q4 GDP and a lower-than-expected monthly CPI that have combined to ease RBA “rate hike fever” that has swept through markets since early February.

The volatile monthly CPI indicator (which considers updates for only 62% of the basket and has a limited history) showed inflation in January increased by 7.4%, slowing from its 8.4% reading in December, below market consensus for an 8% rise. While caution is required around reading too much into this measure - taken at face value, peak quarterly inflation may now have passed.

Turning to the national accounts, the Australian Q4 GDP rose by 0.5% QoQ (vs 0.7% exp) to be 2.7% higher on the year and although this is the fifth consecutive increase, growth has slowed in the last two quarters.

Key highlights:

  • Consumer spending grew by 0.3%, the weakest quarterly result since the Covid-19 Delta variant lockdowns in September 2021. This is a red flag that consumers are tightening their belts after feeling pressure from higher interest rates and increased cost of living costs
  • Net exports added 1.1 percentage points to GDP growth, and inventories detracted 0.5 percentage points
  • Australia’s terms of trade rose 0.6% as growth in export prices (+1.8%) outpaced import prices (+1.3%). Mining commodities drove the rise in export prices. The depreciation of the Australian dollar contributed to the increase of import prices
  • The household saving ratio declined from 7.1% to 4.5%, the lowest level since September 2017. Another red flag that signals consumers are digging into savings to counter the cost of living and mortgage pressure.


Afternoon report

Materials sector

The Materials sector, which fell 6.90% in February, led today’s rebound supported by the strength of Chinese PMI data.

Consumer-facing stocks

Consumer-facing stocks have fallen as today’s GDP data showed that consumers are now in belt-tightening mode.

Financial sector

The big four banks have also fallen for the same reason outlined above, a development that will further dampen the appetite for credit.

  • ANZ fell 1.3% to $24.33
  • CBA fell 1.23% to $99.45
  • NAB fell 1.9% to $29.44
  • Westpac fell 2% to $22.09.


ASX 200 technical analysis

Earlier this week, the ASX 200 reached the upper echelon of the 7200/7000 support band we have targeted since late January. Providing this support level holds, we expect to see a recovery towards the 7400/7600 resistance area.

ASX 200 daily chart

Source: TradingView

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

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.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.