ASX200 Afternoon Report May 25th 2022

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

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

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.