ASX200 Afternoon Report September 13th 2022

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.

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

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.