Strength in the Information Technology sector saved the ASX from a steep decline today. The bourse skittered all the way down to 7,951 points at about 11am, shedding 0.56% before WiseTech Global led the recovery, notching an impressive 17.89% gain, the best showing on the ASX200 today.
Read: WiseTech Global has strong FY24 results with 28% revenue growth and new product launches for FY25
With Tech stocks pulling the hard yards, the ASX has come to rest largely unchanged from yesterday, up just one point to 7,998.80.
Mid-caps Megaport Ltd (ASX:MP1) and Data#3 Ltd joined the Tech charge today, adding 5.44% and 5.90% to their stock prices respectively.
There was some strength in Materials, up 1.53%, and weakness in Financials, Utilities, Real Estate and Healthcare, all down between 0.48% and 1.06%.
Energy was the biggest loser on the market today, shedding 2.08%. Big Caps bore the brunt – Woodside Energy Group fell 1.18%, Santos 4.48% and Yancoal Australia 4.03%.
Overall, the ASX has gained 1.89% over the last five trading days and sits 1.84% off its 52-week high.
Markets falter as investors shift focus
Finance Broker moomoo AU chief commercial officer Michael McCarthy joins us to discuss the recent tide shift in the markets, as investors await the next insight into the US Fed’s interest rate plans on Friday.
“Investors locked in recent share market gains and appeared to rotate into bonds as the appeal of more defensive investments grew,” McCarthy wrote.
“Bond yields dropped along the interest rate curve, indicating broad buying.
“Gold jumped and growth-sensitive energy prices dropped as investors put up the storm shutters and re-balanced away from riskier assets ahead of Friday night’s speech from the Chairman of the US Federal Reserve.
“Current market uncertainty around the direction and quantum of any changes to central bank-determined interest rates is an uneasy background to economic optimism.
“For the first time since 2008 central banks globally are singing different songs.
“While the Bank of New Zealand cut rates last week and Fedspeak remains broadly accommodative, the note to a recent Bank of Japan MPC meeting points to further possible rate rises and the Reserve Bank of Australia is openly canvassing lifting cash rates.
“These differences are in stark contrast to the globally co-ordinated actions of the previous 16 years.
“Some analysts believe this is a sign of more independent approach for national banks, others that this is a temporary blip that will be addressed by Jerome Powell on Friday night.”
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