ASX200 Afternoon Report September 13th 2022

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The ASX200 trades 45 points higher at 7009 at 3.05 pm Sydney time

For the moment, the bulls are back in control on Wall Street as key indices locked in a fourth straight session of gains, on hopes that cooling economic and inflation data will allow the Fed to zero in on a soft landing.

The positive lead from Wall Street reverberated across the Asian region as Korean (+3.18%) and Chinese (1.24%) stock markets spring boarded higher on their re-opening after a three-day long weekend for the Harvest Moon Festival.

Locally the ASX200 displayed a "devil may care" type attitude ahead of tonight's U.S inflation data to trade above 7000 for the first time since late August. Last Tuesday's 100-point fall, now just a distant memory.

The rebound also supported by a lift in Australian Consumer and Business confidence data. Within the consumer confidence data details, a broad-based improvement in expectations was noted, helped by lower petrol prices, a strong labour market, and the shock value of aggressive RBA rate hikes wearing off.

In this case, the RBA will need to continue tightening further into restrictive territory if they wish to tame spiralling inflation and a tight labour market.

But those concerns are for another time, and fitting today's mood, the interest rate-sensitive Real Estate Sector has led the dance higher. Goodman added 2% to $19.57, Charter Hall Group added 1.57% to $13.22, and Mirvac group added 1.4% to $2.15.

News that emergency oil reserves in the U.S fell by 8.4m barrels last week to 434m barrels, the lowest level since 1984, saw the price of crude oil rise above $88.00 per barrel overnight. Santos added 1.7% to $7.84, Woodside added 1.4% to $33.23, and Beach Energy climbed by 0.75% to $1.67.

The Financial Sector glided higher on the supportive currents of improving business and consumer confidence. CBA added 1.54% to $97.76, NAB added 0.64% to $30.03. Westpac added 0.75% to $21.63, and ANZ added 0.5% to $30.45.

Oz minerals gained 2.22% to $26.71 as the price of copper added 1% overnight. South32 added 1.65% to $4.32, Mineral Resources added 1.4% to $74.12, Rio Tinto added 0.9% to $96.91. Elsewhere FMG fell 0.24% to $18.36.

The big losers on the day were Link Administration which fell by 20% to $3.56, and Ramsay Health Care which fell by 10.7% to $62.70 as a group led by KKK walked away from its pursuit of the healthcare company.

The view remains that the ASX200 has entered a period of choppy range trading between 6700 and 7100, in line with our view of U.S equity markets.

ASX200 day chart 13 sep

Source Tradingview. The figures stated are as of September 13th, 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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