ASX200 Afternoon Report September 12th 2022

The ASX200 trades 71 points higher at 6965 at 3.05 pm Sydney time

A rebound-on Wall Street last week led by the high beta Nasdaq (4%) has been behind a solid session to start the week for the ASX200.

Last week's recovery on Wall Street was driven by hope that the Feds rate hiking cycle is set to decelerate after the September FOMC, as well as lower oil prices and solid economic data.

Also playing a part, a break from the unrelenting barrage of hawkish Fed Speak with the Fed now in a two-week blackout ahead of the September FOMC meeting.

Strong China credit data released on Friday, that helped the price of iron ore back above $100 p/t has supported the big miners.

FMG gained 3.76% to $18.49. BHP added 3.4% to $39.39, Mineral Resources climbed to a fresh record high as it added 3.35% to $73.90, and Rio Tinto added 1.84% to $96.10.

Gains for IT stocks, enjoying the prospect of less aggressive rate hikes into year-end, led by Sezzle as it added 7% to $0.69c. EML Payments added 4.5% to $1.04. Afterpay owner Block added 4.5% to $108.55, Life 360 added 4% to $5.65, and Megaport added 3.7% to $8.62.

The Financial Sector has kicked higher after all 4 of the big banks passed on last Tuesday's RBA 50bp rate hike in full. ANZ added 1.6% to $23.19. Westpac added 1.2% to $21.51, CBA added 0.85% to $96.35 and NAB added 0.64% to $30.03.

After touching a seven-month low last week at $81.20, the price of crude oil is back trading above $85.00, helping Beach Energy to add 1.5% to $1.68. Woodside added 1.4% to $33.00. Santos fell 1.15% to $7.76 on speculation that a large Chinese shareholder was selling down its stake in the oil and gas producer.

Shares in a2milk were up almost 4% in early trading on news that the license for its partner in China, Synlait had been extended. The share price has since trimmed gains to be trading at $5.68, +2.16%.

Technically last week's rebound sets the ASX200 up for a period of choppy range trading between 6700 and 7100, in line with our view of U.S equity markets.

Source Tradingview. The figures stated are as of September 12th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.