Wall Street finished in the red overnight after a US treasury auction sent bond yields higher, and CPI data came in hotter than expected. September monthly headline CPI came at 0.4%, higher than consensus of 0.3%, down from 0.6% in August. Headline YonY remained unchanged at 3.7%, although higher than expectations of 3.6%.
Turnover day – Not sure you take much interest in the technical signals today as the four-day trend comes to an end. Not a lot of technical signals anyway as the market bounce drops away. This is the ASX 200 – will the new trend end? Likely.
Market surviving the CPI number overnight – all is not lost although the rally has certainly started to doubt itself.
DMP is enjoying a purple patch, up 10% in the past five days. Citi upgraded the company on Wednesday to Buy, noting that an inflection point has been reached and improvement in key financial metrics are expected.
All Change – We are back on interest rate watch after the CPI number. Interest rate sensitive rally to end. US Results season starts tonight. Usually, a positive. Investment banks up first. DMP – Some broker upgrades. SGR – If you can swallow your ethics. BOQ after dropping 7% on results. Interesting moves in our industry.
BOQ released full year results on Wednesday and was received poorly by the market to say the least. Down 7% (a lot for a bank) on the news, followed by an interesting bounce back yesterday, up 4%.
ASX 200 performs better than expected, falling only 40 points to 7051 (-0.6%). Volumes seemed light, and some…
The Doves are still flapping – we are four days into this market rally
US equities finished higher overnight after a choppy session following the release of FOMC meeting minutes, which showed caution among policymakers, fuelling bets that rates would stay steady. The Dow edged higher, up 66 points (+0.19%). Up 143 at best. Down 127 at worst. The S&P 500 rose for a fourth straight session, up 0.43%, and the NASDAQ rose 0.71%
ASX 200 limped to a 3-point gain to 7091 (+0.04%) ahead of US CPI. Six…