ASX 200 Ends the Month in Uninspiring Fashion
WEDNESDAY MID WEEK CATCH UP, 30th September 2020The ASX 200 (ASX: XJO) has ended the month in uninspiring fashion as it oscillated between small gains and losses on Monday to close down 13 points. The banks slid back on some profit-taking after big moves last week on news lending restrictions would be eased. Tuesday saw a similar pattern evolve; the market closed flat after early optimism evaporated. Another quiet day of indecision… Wednesday saw the market down 64 points at midday, the US Presidential debate and end of the quarter position squaring likely driving some of the risk-off sentiment. The end of the quarter can typically lead to some window-dressing although from the recent 3.95% rally in the Dow Jones (after a 10.4% fall) it looks like that might have already happened. If there are last-minute shenanigans it tends to reverse the next day although with our market looking pretty shabby today it doesn’t look like there is much to reverse. Some other major points from the week include:
- There seems to be some progress on stimulus talks with a $2.2 trillion package. Still unlikely ahead of the election, but who knows.
- UK and US lock downs are expected to intensify, the oil price suffering as a result.
- COVID continues to see moderate resurgences in the US
- Iron ore finding some support after falling 5% last week.