Materials are dragging the ASX lower

The ASX 200 has been quite choppy in today’s trade and is currently flat at 4840, with the materials lagging.

We feel the ASX is facing some resistance at 4850 in the near term, which is where the highs from the last couple of weeks were. BHP, RIO and FMG are all down around 1.5% each. Gold miners are even worse off, with Newcrest dropping 6% and Medusa Mining plunging 9%.

Meanwhile, energy names are powering ahead after oil prices gained on renewed tension in Egypt. Woodside Petroleum has put on 1.4% and Santos has surged 1.9%. Healthcare names are also doing fairly well helped by USD strength, with the likes of CSL and Resmed pushing higher. Meanwhile, the banks are mixed with CBA and WBC gaining ground, while ANZ and NAB are weaker. 

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.