ASX 200 afternoon report: July 3, 2023
Your ASX 200 afternoon report.
The ASX 200 trades 47 points higher (0.66%) at 7251 at 3.55 pm AEST.
The ASX 200 has gained on the first day of a new quarter, following a positive lead from US equity markets on Friday night as investors cheered the release of softer-than-expected inflation data.
The PCE Price index eased to 3.8% YoY vs a downwardly revised 4.3% in April - the lowest reading since April 2021. The Feds preferred measure of inflation, core PCE, eased to 4.6% YoY compared to market expectations of 4.7%.
While easing inflation and mega tech were the drivers of Friday’s rally in the US, the ASX 200 has today relied on some good old-fashioned heavy lifting from the Materials and Energy sectors.
Yancoal added 3.5% to $4.74, Whitehaven coal added 1.56%, and New Hope Coal added 1.55% to $4.93. The iron ore behemoths gained as Rio Tinto added 0.87% to $115.69, Fortescue added 0.81% to $22.36, and BHP added 0.69% to $45.30.
The Consumer Discretionary Sector added 1.5% today, hoping for an RBA pause tomorrow. We think otherwise and are calling for a 25bp rate hike tomorrow to 4.35%. Myer added 4.25% to $0.62c, Super Retail Group added 2.54% to $11.72, JB Hi-Fi added 2.45% to $44.82, and Harvey Norman added 2.16% to $3.56.
The big banks firmed, with ANZ, the best of the bunch, up 0.63% to $23.86. CBA added 0.54% to $100.81, Westpac added 0.4% to $21.43, Macquarie added 0.31% to $178.17, and NAB added 0.15% to $26.41.
The ASX 200 technology sector has ignored the lead provided by the tech-heavy Nasdaq to be today’s biggest loser. Wisetech fell 3.43% to $77.07, Sezzle fell 3.01% to $20.92, and Technology One fell 1.73% to $15.38.
Elsewhere, United Malt shares gained 8.86% to $4.79 after it reached an agreement for France’s Malteries Soufflet to buy the company at $5 a share.
ASX 200 technical analysis
The ASX 200 has spent the past three months trading sideways between resistance at 7370/7390 and support at 7075/7055. Until the ASX 200 sees a sustained break of either of these levels, further sideways-range trading is expected. Aware that a sustained break of range extremes should see the ASX 200 extend the move by 150 points (~2%) in the direction of the break.
ASX 200 daily chart
- TradingView: the figures stated are as of July 3, 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.
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