SPI Futures down 97 following a 98 point drop in the ASX 200 yesterday. The “High for Long” mantra is being adopted globally with obvious consequences for equities.
We have halved our losses this morning from down 105 to down 51. We are in cash again in the Strategy, Ideas, MQG and BHP portfolios. Waiting for the bottom. Could be tomorrow. Could be a year away.
The ASX 200 finished the week up 4 points to 7069 (+0.1%), clawing back earlier losses after falling over 100 points (~1.5%) at the opening bell and snapping a four-day losing streak. SPI Futures were down 97 points this morning. ASX 200 fell for a second consecutive week, down 2.89%. Sectors were mixed. Real Estate and Tech were hit hardest, while Industrials and Utilities showed resilience. Iron ore heavyweights mixed, BHP and FMG pared earlier losses, closing up 0.5% and 1.5%, respectively, while RIO fell 1.2%. Tech suffered heavy losses. SQ2 down another 2.1% with the CEO’s departure still hammering the stock. BRN off 2.5%, down for its fifth consecutive session, suffering heavy losses since its exit from the ASX 200, and XRO fell 0.6%. Banks mixed, CBA, ANZ and MQG all down, while NAB rose 0.5% despite a $2.1m fine for unconscionable conduct wrongfully overcharging customers and WBC up 0.7%. Big Bank Basket up to $175.11 (+0.1%). REITS lower, pressured by rising bond yields. GMG dow
Dow Jones down 370 points or 1.08%, closing near the low and down 2.38% for…
The “New Hawkishness” goes global. Slow leak turns into a puncture. A few other signs of that we’re going nowhere. The seasonal chart says come back in December. Selling BHP as well. If you’re ever going buy BBUS and SNAS now’s the time.
The ASX 200 finished the week up 4 points to 7069 (+0.1%), clawing back earlier losses after falling over…
The Fed was more hawkish as feared and the Futures are down another 20 this morning.
ASX 200 down 41 points – The Fed have killed the mood, bond yields are heading up, we’re mostly in cash and have little reason not to be.
Fed Hawkish – Policy to be “kept significantly tighter” through 2024 than previously expected. Dow Jones dropped 279 points after the announcement. NASDAQ down 1.53%. S&P 500 down 0.94%. Bond yields rose – 10 year bond yield rose 3bp and the two-year bond yield +7.5bp on the night.