The Australian market has had a sharp reversal of fortune this afternoon, rallying sharply on the back of what looks like end of financial year action and news out of China that the Communist Party is pulling out all stops to prop up its ailing stock market.
That’s left the market up 36 points or 0.67% which is a really strong day’s performance after overnight futures indicated another fall of around 35 points for the physical market today.
Here’s the scoreboard:
- S&P ASX 200: 5459.0 +36.5 +0.7%
- All Ordinaries: 5451.2 +34.6 +0.6%
- AUD/USD: 0.7685 +0.0011 +0.16%
Kathmandu was the standout performer of the day, up 25.6% to $1.57 a share after New Zealand’s Briscoe Group announced to the exchange it had moved to a 19.99% stake and planned to “lodge a takeover notice imminently in respect of a takeover offering comprising both cash and scrip to all Kathmandu shareholders.” Kathmandu acknowledged Briscoe’s announcement but said it had had no contact with the company. Bluescope steel and Arrium were both big winners on the day, up around 8%.
On the other side of the ledger, after a bad day and heavy losses yesterday, Slater and Gordon fell another 5.82%.
But most industry sectors were up with the ASX reporting only IT ending the day lower and then it was only by a minuscule 0.15%.
Whether today’s price action was related to the strong Chinese bounce, the end of the financial year, or whether it is the start of a reversal, will largely be determined by price action offshore tonight. To that end, the S&P 500 is the key to global stock market sentiment and this chart holds the key to the next move in the S&P and global stock markets.
The top stories today:
1. Mr Narev, it’s a long way from $100 a share. So while the banks might be making plenty of profits and dominating the local financial landscape, the ASX 200 index, and mums and dads portfolio holdings, but save for the last couple of hours performance today they have gone nowhere this financial year.
2. Housing investors are still going strong and driving Australian private credit growth Reserve Bank data released today showed.
3. Australian consumer confidence surged to an 18-month high last week. Now all we need is for confidence to lead to spending and Australia’s economic transition might just be a chance of getting back on track.
4. While Australia ranks as the 7th most desirable place on the planet to live and Sydney the 4th more desirable location for offshore workers to migrate too there is no stopping Australians from wanted to taste life and test themselves offshore. But, this Australian tech company has an awesome way to stop talent fleeing overseas.
AND our bonus item for all the rockers out there.
5. It looks like AC/DC are finally on the streaming bandwagon in time for Apple Music.