ASX 200 afternoon report: August 24, 2023

The ASX 200 trades 41 points (0.58%) higher at 7190 at 3.25 pm AEST.

The ASX 200 is poised to secure a third consecutive session of gains, providing some late recovery to the August scoreboard. At its lowest point on Friday, the ASX 200 had declined by 4.40%.

Before traders rush to augment long positions in the ASX 200 at discounted August prices, it's worth remembering that the forthcoming month, September, traditionally marks the year's most challenging period.

Over the past five years, the ASX 200 has recorded an average monthly loss of 2.91% in September. For those who seek a broader sample size, the figures aren't much more encouraging, with the ASX 200 averaging a 2.29% decline in September over the past ten years.

Despite the looming uncertainty of September, the local market seized the opportunity today to celebrate the quarter's most eagerly awaited US earnings report. AI exemplar Nvidia lived up to the anticipation, surpassing both "The Streets" and the "Whisper" numbers.

The ASX 200 market movement

Nvidia reported Revenues of $13.51bn vs. $11.1bn expected and EPS of $2.70 vs. the $2.07 expected. Nvidia's share price last traded at $502.10 (+6.57%) in after-hours trading, ensuring a good day for the ASX 200 IT sector as it added 4.41%.

Rebounding from yesterday's 20% fall, Wisetech gained 8.4% to $75.50 as traders had second thoughts about yesterday's earnings disappointment. Appen added 7.37% to $2.33, Xero gained 4.37% to $123.76, and EML Payments added 4.35% to $0.84c.

The release of soft European and US flash PMIs overnight has raised expectations that major central banks have ended their rate-hiking cycles, prompting a fall in yields at home and abroad.

Good news for the big banks as Macquarie gained 1.92% to $173.38, NAB added 1.43% to $28.44, Westpac gained 1.51% to $21.46, CBA gained 1.22% to $100.60, and ANZ gained 0.7% to $24.62.

Aided also by bullion soaring above $1920, gold miner Northern Star Resources' share price surged 4.62% to $11.09 after it reported record cash earnings of $1,223 million and a 10% rise in EBITDA to $1943 million. Elsewhere, Perseus Mining added 2.62% to $1.76, Evolution Mining gained 2.75% to $3.54, and Gold Road Resources added 1.9% to $1.62.

Despite reporting a record annual profit of $2.47bn on a $10bn lift in revenues, the share price of Qantas failed to take flight, gaining just 0.65% to $6.21. Investors are in a cautious mood, given that pressure on airfares is expected to intensify as capacity is added and as the outlook for travel softens in line with cost-of-living pressures and higher interest rates.

ASX 200 technical analysis

This week's rebound from ahead of support 7050/7000 keeps the ASX 200 tracking within its range of the past four months (7370 -7050ish) and warns that more sideways range trading lies ahead.

ASX 200 daily chart

• _{TradingView: the figures stated are as of August 24, 2023. 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.}