The ASX200 has lifted by 48 points to be trading at 7177 at 3.30 pm Sydney time.
The gains came after a rally in U.S equity futures, as the patch of soft U.S economic data extended overnight, sparking hopes that a less aggressive rate hiking cycle will be needed and that a soft landing can be achieved.
Music to the ears of consumer-facing stocks locally as Metcash (MTS) lifted by 2.12% to $4.33, Coles Group (COL) added 1.7% to $17.95, Woolworths added 1.6% to $34.99, Wesfarmers added 1.2% to$46.87 and Telstra added 1.3% to $3.92.
Gains also for the Finance sector today. National Australia Bank (NAB) lifted by 2.6% to $31.90, Westpac (WBC) added 1.8% to $23.96, Commonwealth Bank (CBA) added 1.35% to $106.50, ANZ added 1.2% to $25.68.
The Materials sector remains buoyant on prospects of more stimulus from Chinese authorities to offset the Covid slowdown. Rio Tinto (Rio) added 2% to $112.68, BHP Group (BHP) added 1.88% to $43.35. Oz Minerals (OZL) added 1.4% to $23.30, South32 (S32) added 1.07% to $4.73, and Fortescue Metals (FMG) added 0.17% to $20.81.
Gold stocks have extended their recovery after the price of bullion climbed for a fifth straight day closing near $1866 (0.67%). Evolution Mining added 4.3% to $3.85, Northern Star (NST) added 2.6% to $9.12, Silver Lake Resources (SLR) added 2% to $1.59, and Newcrest Mining (NCM) climbed by 0.9% to $25.27
The local tech sector the main drag today as Block (SQ2) fell 5.3% to $109.44, Megaport (MP1) fell 5% to $7.00, Appen (APX) fell 4.3% to $6.42, Sezzle (SZL), fell 2.94% to $0.50c and Zip (ZIP) fell 2.87% to $0.85c.
Also under pressure Lithium miners, Pilbara Minerals (PLS) fell 4.5% to $2.77, Lake Resources (LKE) fell 1.75% to $1.42, Vulcan (VUL) fell 2.16 % to $7.25. Galan Lithium (GLN) fell 2.26% to $1.41 while Liontown Resources (LTR) fell 2.4% to $1.30.
Over the past fortnight, the ASX200 has followed our road map to perfection. From our 7000/6950ish downside target, the rebound in the ASX200 last week reached our upside target at 7200. With the uncertainty of the Federal Election in the rear vision mirror, I expect to see the ASX200 break the critical resistance at 7200 and rally towards 7300/50.
Source Tradingview. The figures stated are as of May 25th, 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
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