The ASX 200 trades 34 points (0.46%) higher at 7695 at 3.00pm AEDT.
If yesterday’s trading session for the ASX 200 mirrored Monday’s, where early gains dissipated, today’s session resembled Tuesday’s, with buyers capitalising on initial weaknesses before propelling the market into positive territory. Today’s buying activity also suggests a month-end rebalancing effect.
The stagnation observed this week isn’t wholly unexpected, as fund managers and analysts delve deeper into this season’s earnings reports and anticipate crucial US inflation data set to be announced early tomorrow morning, Sydney time
Today’s key economic event
Retail sales for January increase by a less-than-expected 1.1%, following a 2.1% fall in December. Ben Dorber, ABS head of retail statistics, said: “The rebound in January follows a sharp fall in December when consumers pulled back on spending after taking advantage of Black Friday sales in November. Retail turnover is now back at a similar level to September 2023.”
We continue to think that softer inflation, cooling labour markets, slower growth and household spending will see the RBA remove its tightening bias in June before cutting rates by 25 basis points (bp) in August and again in November 2024.
ASX 200 stocks
Consumer-facing stocks
Buoyed by prospects of rate cuts and a strong earnings report from Harvey Norman, Consumer-facing stocks have rallied.
- Harvey Norman: +3.6% to $4.91
- Myer: +3.21% to $0.81c
- Dominoes: +1.6% to $44.95
- Nick Scali: +1.44% to $14.80
Property sector
- Centuria Capital: + 4.34% to $1.62
- Goodman: +3.57% to $29.85
- Lend Lease: +2.27% to $6.31
- Charter Hall Group: + 1.96% to $12.47
Banking sector
- Macquarie: +0.42% to $194.50
- CBA: + 0.40% to $116.42
- Westpac: -0.08% to $26.18
- ANZ: -0.25% to $28.42
- NAB trades flat at $33.88
Mining sector
A 1% fall in the price of iron ore overnight to $116.20 has weighed on the big miners. Mineral Resources: -1.85% to $66.49
- Fortescue: -1.5% to $25.61
- BHP: – 0.07% to $43.93
- Rio Tinto: +0.11% to $123.53
Energy sector
- Woodside: + 0.89% to $30.41, rebounding after it reported yesterday a 74% fall in annual profit due to impairments and weaker energy prices
ASX 200 technical analysis
The ASX 200 has edged above downtrend resistance at 7685ish, coming from the all-time 7703.6 high. A daily close above 7685ish would end three weeks of consolidation and set the platform for the ASX 200 to push towards our upside target at 7900.