Contrary to this morning’s expectations, the S&P/ASX200 is still lower today, dropping 15.50 points or 0.22% to 7,026.80 to set a new 50-day low.
The index has lost 2.45% for the last five days but is virtually unchanged over the last year to date.
Sector-wise, Information Technology was in the green (up 0.43%), while everything else was flat or, as in the case of Consumer Staples (0.99%), down.
China’s CPI data a worry
eToro market analyst Josh Toro thinks we should be looking to China for signs of easing and deflation:
"China's CPI data was unchanged in June, holding steady at 0.2% showing further signs of weak demand in the region. This reading is just one of many economic readings from China in recent months to show that the economic recovery is faltering, with a mountain of evidence now in place for officials to roll out further stimulus measures.
“Despite this, China has continued to state that policy would be targeted and well-coordinated, driving down expectations for large stimulus packages.
“The worry with inflation figures this low is deflation. Consumers and businesses continue to hold back on spending with expectations that prices will fall further, raising concerns of price spirals.
“However, this latest data set the scene for further easing from the PBOC, which could signal good news for equities that have so far struggled in 2023, with the Hang Seng well underperforming global equities.
“More action from the PBOC, alongside what looks set to be the end of the regulatory crackdown on internet stocks, puts Chinese tech very much back on investors’ radars."
The five at five
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Forrestania Resources finalises Hydra Lithium Project joint venture in Canada; shares up
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On your six
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The one to watch
Kingfisher (LON:KGF) Mining advancing large-scale carbonatite targets
Kingfisher Mining Ltd (ASX:KFM) CEO James Farrell tells Proactive the company has confirmed the presence of rare earth element (REE) mineralisation at the CH8 target of the Mick Well Project, in WA while also advancing mapping and sampling for a lithium exploration program on the tenure.
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