ASX 200 afternoon report: 17 April 2024

The ASX 200 trades 4 points (0.06%) higher at 7616 at 3.00pm AEST.

A bruised and battered ASX 200 is on track to limp over the finishing line in positive territory today, snapping its four-day losing streak. The four-day sell-off, which at yesterday's low point of 7585, cost the index a hard-earned 263 points (3.37%), and has wiped out most of the ASX 200's gains for 2024, leaving shareholders contemplating what might come next.

On the positive side of the ledger, an element of uncertainty was removed overnight after Fed chair Powell acknowledged that rates would need to stay higher for longer. The Fed chair's shift in tone reduces the chances of the central bank committing the policy blunder of cutting interest rates, while inflation remains stubbornly high.

Challenges ahead: ASX 200 faces headwinds and opportunities amid geopolitical tensions

On the negative side of the ledger, the seasonal sweet spot for the ASX 200 is now coming to an end amid an environment of rising bond yields and elevated geopolitical tensions as Israel's war cabinet continues to deliberate over its response to Iran's attack over the weekend.

In contrast, DroneShield, a company specializing in drone detection and mitigation technologies, finds itself well-positioned to benefit from the current geopolitical tensions. The company recently announced a significant stride forward, securing a three-year procurement deal with NATO. This development has led to a notable surge in its share price, propelling (pun intended) it 17.46% higher to $1.11.

ASX 200 stocks

IT sector

IT stocks have gained today after the tech-heavy Nasdaq stabilised overnight.

• Appen: + 2.29% to $0.67c
• Megaport: + 1.90% to $13.95
• Tyro Payments: + 1.09% to $0.93c
• Afterpay: + 1.38% to $114.87

Consumer-facing stocks

Australian labour force data for March will be released tomorrow morning at 11.30 am. The market expects the economy to lose 40k jobs and the unemployment rate to rebound to 4% from 3.7%.

• Myer: + 2.86% to $0.72c
• Dominoes: + 1.61% to $37.98
• Harvey Norman: + 1.32% to $4.60
• JB Hi-Fi: + 1.23% to $61.59

Banking sector

The ASX 200 financial sector has gained, led by the Bank of Queensland, which surged 4.83% to $6.08 after announcing "bold" strategic initiatives to improve returns while reporting a 33% decline in net profits in the first half of the year.

• ANZ: + 0.56% to $28.58
• Westpac: + 0.33% to $25.65
• CBA: + 0.11% to $112.33

Mining sector

The big miners have offered little support to the index

• BHP: - 1.37% to $44.35
• Rio Tinto: - 0.30% to $128.31
• Fortescue: - 0.18% to $24.99

ASX 200 technical analysis

The ASX 200 cut through several key support levels yesterday, including uptrend support at 7750/40ish and wave equality support at 7700, leaving the index vulnerable to a test of support at 7500. To negate the technical damage, the ASX 200 first needs to reclaim resistance at 7750ish, followed by a rebound above trend line support at 7800.

ASX 200 daily chart

• ^{Source TradingView. The figures stated are as of 17 April 2024. 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.}