ASX 200 afternoon report: 12 September 2024

The ASX 200 trades 60 points (0.75%) higher at 8047at 2.00pm AEST.

ASX 200 breaks 8000 barrier on Wall Street rebound

The ASX 200 is on track for its highest daily close since early September, finally breaking the shackles of the 8000 level that has weighed on the index over the past week.

Today’s gains followed a stunning turnaround on Wall Street, where firm core US inflation data dashed hopes for a 50 basis points (bps) interest rate cut at next week’s Federal Open Market Committee (FOMC) meeting. Despite initially plunging 743 points (-1.83%), the Dow Jones bounced back to finish 125 points (0.31%) higher at 40,862.

Positive sentiment from presidential debate

Adding to the positive sentiment is the increased clarity from yesterday’s presidential debate. While a Trump administration is seen as slightly more favourable for equities, Kamala Harris’s strong debate showing, which boosted her odds in the betting markets, has contributed to easing election-related jitters.

ASX 200 stocks

Local tech stocks

Local tech stocks have rallied strongly, taking cues from the Nasdaq's impressive 2.17% rise overnight, fuelled by Nvidia's 8.15% surge.

• Appen leapt 10.51% to $1.42, extending its recovery from the $0.91 post-earnings dip
• Zip climbed 4.5% to $2.20
• Afterpay owner, Block advanced 4.17% to $95.14

Energy sector

In the energy sector, Hurricane Francine's ramifications, which caused refinery shutdowns along the US Gulf Coast, have sparked a rebound from the ASX 200 energy sector's 32-month low.

• Beach Energy jumped 2.97% to $1.13
• Woodside Energy rose 1.81% to $23.89
• AGL Energy increased 1.6% to $11.78

Consumer discretionary stocks

Ahead of next week’s employment report, consumer discretionary stocks have gained.

• Cettire surged 8.65% to $1.70
• Adairs climbed 4.79% to $1.75
• Myer added 3.37% to $0.83
• JB Hi-Fi gained 0.65% to $82.22 after hitting a fresh record high of $83.30 earlier in the session

Lithium stocks

Lithium stocks are powering ahead following yesterday's announcement that a Chinese miner is halting production at two lepidolite lithium sites.

• Vulcan Energy spiked 6.15% to $3.97
• Pilbara Minerals jumped 4.7% to $2.80
• IGO rose 4% to $5.33
• Liontown Resources climbed 3.62% to $0.71

Uranium stocks

Meanwhile, the looming threat of a Russian uranium export ban to the West has ignited ASX-listed uranium shares.

• Deep Yellow skyrocketed 12.1% to $1.16
• Bannermen Energy surged 11.6% to $2.35
• Silex Systems rallied 10.85% to $3.78
• Paladin Energy advanced 8.42% to $9.73

ASX 200 technical analysis

The continuation of the rebound from last week's 7918.9 low places under review the idea that the ASX 200 carved out a double top at August's 8148 high and September's 8116 high. Nonetheless, we need to see a sustained break above 8150 to indicate that the ASX 200’s grind higher has resumed towards 8230/50.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 12 September 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.}