ASX200 Afternoon Report September 19th 2022

The ASX200 trades 6 points (-0.02%) lower at 6733 at 3.00 pm Sydney time.

Another tough session on Wall Street on Friday saw U.S share markets close ~5% lower last week, undercut by hotter-than-expected inflation and a profit warning from FedEx that fuelled concerns over recession.

Also playing a part, nerves ahead of Thursday’s FOMC meeting, which is expected to see the Fed deliver a 75bp rate rise, taking the Fed Funds into a range of 3-3.25%. Accompanying the rates decision, hawkish guidance is expected to set the Feds Funds rate up to finish the year in a 4-4.25% range, about 50bp higher than this time last week.

After being horrendously wrong-footed twice in the past three weeks by reversals on Wall Street, the ASX200 has traded in light volume, with no interest in making the same mistake a third time in quick succession.

OZ Minerals gained 2.3% to $25.82 on reports that BHP is considering upping its offer for the company. Mineral Resources added 3.07% to $68.44, and Rio Tinto added 0.55% to $92.95. Lithium miner Lake Resources added 14.5% to $1.07 on reports that its construction facilities in Argentina are complete.

Real estate stocks gained ahead of the release of the RBA meeting minutes tomorrow that will note the RBA is considering slowing the pace of hikes into year-end and “will be guided by incoming data.” Shopping Centres Australia added 2.82% to $2.55, Mirvac added 1.7% to $2.10, Stockland added 1.7% to $3.51, and Charter Hall Group added 1.22% to $12.47.

A 0.5% fall in Nasdaq futures after re-opening this morning has weighed on tech stocks. Block fell 4.3% to $96.65, Computershare fell 3.85% to $25.01, EML Payments fell 3.5% to $0.90c and ZIP fell 2.44% to $0.80c.

After trading at $2070 six months ago, gold is trading at $1668, threatening to break lower. However, the share price of gold mining stocks has shown surprising strength today. St Barbara added 3.13% to $0.83c, Northern Star added 2.85% to $7.61, Newcrest Mining added 1.9% to $16.95, and Evolution Mining added 1% to $2.05.

The comprehensive rejection from above 7000 last week fits the view that the ASX200 has entered a period of choppy range trading until the start of November.

Source Tradingview. The figures stated are as of September 19th, 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.