Defying a weak lead from futures overnight and early local weakness, the ASX200 ground out a solid performance by the close to finish in the black.
The positive result came despite weaker-than-expected employment data, which showed the economy lost 3,900 jobs during August. That fall was in contrast to the market expectations of a 15,000 increase in jobs. Despite the fall, the unemployment rate dropped to 5.6% as Australian’s left the workforce.
- S&P ASX 200: 5,239.90 +12.20 +0.23%
- All Ordinaries: 5,337.1 +10.5 +0.20%
- AUD/USD: 0.7466 Flat 0.0%
The consolidation and recovery over the past two trading days on the Australian market has been encouraging. The physical ASX200 index needs to rally just another 11 points to 5250/55 zone to break back into its 2016 uptrend.
More encouraging still, the forward-looking SPI 200 futures contract, which is open more hours of the day and so gives a better indication of the overall global stock market performance, has dragged itself bag inside the uptrend today.
This is a small boon for market sentiment. But, if both indexes can close inside their respective uptrends at the end of the week’s trade Friday market sentiment will take a big positive hit.
Looking at the sectoral performance today, financials lead the way with the Commonwealth Bank, in particular, finding solid support as it reverses from its weak close at $69.50 on Tuesday. It’s up another 1.91%% in trade today, closing at $71.50.
The NAB was up 1.44% to $26.78, while Westpac, up 0.62% to $29.30, and the ANZ, up 0.23% to $26.07, lagged but were also higher.
At the other end of the performance table, energy shares were under pressure from continued falls in the price of crude oil this week. From a high of $47.75 last Thursday night the front Nymex crude oil contract fell to $43.42 overnight – a fall of 9%.
Santos is down 2.56% today, Whitehaven coals is off 2.54%, Woodside fell 1.17%, Oil Search dropped 1.02% and Caltex is down 0.8%. APA Group fell 4.1%.
Elsewhere in the region today the Nikkei in Japan is down 1.26% and the Shanghai Composite is off 0.69%.
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