Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

Australian shares start the week off strongly, banks lead the way

We look back at the first two sessions of the week for the ASX 200. Banking and energy shares led the rally, but Afterpay stole the show.

ASX 200 claws back ground from Friday

Australia 200 shares roared back to life in the first two sessions of the week, reclaiming back more than half the territory lost during last Friday’s ugly 5% dive.

The benchmark ASX 200 index finished Tuesday’s session at 5,407.10 points, up 161.20 points, or 3.1%, from Friday’s close of 5,245.90.

The Australian sharemarket maintained momentum from Monday’s session after getting a slightly positive lead from Wall Street overnight.

The Dow Jones Industrial Average rose 26.07 points, or 0.11%, to finish its first session for the week at 23,749.76 points. Although the US index only broke into positive territory in the last half hour of trading.

Australia’s banks, which make up 4-out-of-6 of the ASX’s largest companies by market capitalisation, did most of the heavy lifting.

The ASX 200 Financial index rose 4.1% to 4290.40 points. Energy leant very strong support, up 9.6%, while healthcare was down 1.1% and materials was up 0.7%.

Westpac, NAB rallies trounced by Afterpay

Westpac Banking Corporation (WBC) deferred dividends on Monday when it delivered half-year results. All up, the bank saw its half-year net cash profit plunge 70% to $993 million.

Yet the company’s shares finished Tuesday’s session up 5.7% to $16.20. Westpac couldn’t beat rival National Australia Bank (NAB), which rose 7.8% to $16.99.

Meanwhile, ANZ Banking Group (ANZ) also rose 2.7% to $16.45 and the Commonwealth Bank of Australia jumped 3.6% to $60.85.

Those gains however were outshone by buy now, pay later leader Afterpay (APT), which welcomed Hong Kong’s Tencent Holdings to the register. Monday’s 23.8% rally extended into Tuesday’s session with Afterpay finishing at $38.18, up 41.3% since Friday’s close.

Energy shares also rose strongly over the last two days. Woodside Petroleum (WPL), Australia’s largest independent oil and gas outfit, surged 7.5% to $20.89.

Its biggest local rival Santos (STO) jumped 11.3% to $4.83, while Oil Search (OSH) rose 13.4% to $2.96.

Meanwhile, Origin Energy was the pick of the ‘gentailers’ (generators and retailers), after taking a 20% interest in UK retailer Octopus Energy late last week.

Investors evidently were pleased with the news: the share price was up 14.7% since Friday’s close, to $5.55 on Tuesday, despite no fresh news from the company.

It was a different story at main local rival AGL Energy (AGL) on Tuesday. The company warned of growing headwinds ahead of the next financial year due to Covid-19 and changed its tune about full-year guidance.

Speaking to the Macquarie Australia Conference, AGL boss Brett Redman said energy demand was steady, but the ‘mix is shifting’ and the outlook had become less certain for some sectors. AGL shares were down 4.3% to close Tuesday at $16.36.

In economic news, consumer confidence rose by 5.3% to 89.5 points on Tuesday according to ANZ-Roy Morgan’s Weekly Consumer Sentiment index. This was the fifth consecutive weekly gain.

How to trade the ASX 200

What do you make of the current situation: do you see bullish or bearish opportunities? Whatever your opinion, you can trade indices, currencies and equities – both LONG or SHORT – with IG’s easy to use trading platform now.

For example, to buy (long) or sell (short) the ASX 200 index using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘ASX 200’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

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.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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…

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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.