ASX 200 afternoon report: 3 October 2024

The ASX 200 trades 3 points (-0.04%) lower at 8194 at 3.00pm AEST.

Cautious trading amid geopolitical tensions

The ASX 200 eased today as investors awaited updates from the Middle East following the recent spike in geopolitical tensions. Adding to the cautious tone, traders were hesitant to add positions ahead of tomorrow night’s crucial US labour market update, with Chinese traders still absent due to the Golden Week holiday.

US labour data defy slowdown expectations

This week's stronger-than-expected US labour market data defied predictions of an economic slowdown. Both Job Openings and Labor Turnover Survey (JOLTS) job openings and the Automated Data Processing (ADP) employment report surpassed forecasts. If Friday's non-farm payrolls are similarly strong, it could significantly reduce the likelihood of a 50 basis points (bps) interest rate cut from the Federal Reserve (Fed) at its November meeting.

ASX 200 stocks

Sigma Pharmaceuticals on the rise

Sigma Pharmaceuticals' share price surged 6.82% to $2.03 for a third straight session of solid gains. The company continues to work on easing the regulator's concerns over its proposed merger with Chemist Warehouse. The Australian Competition and Consumer Commission (ACCC) has postponed its decision on the merger from 24 October to 7 November, indicating potential progress.

Real estate sector

The interest rate-sensitive ASX 200 real estate sector outperformed today.

• Mirvac Group added 3% to $2.21 following a bullish broker note
• Dexus gained 2.44% to $7.76
• Stockland added 1.91% to $5.34
• Charter Hall added 1.31% to $15.80

Mining sector

The big miners gained as iron ore prices traded at $108.55, consolidating their gains after the People's Bank of China’s (PBOC)’s dovish pivot last week.

• BHP added 0.58% to $45.32
• Rio Tinto gained 0.37% to $126.43
• Fortescue climbed 0.20% to $20.18
• Mineral Resources slipped 2.23% to $51.37, giving back a small fraction of its gains after rallying 80% from its 10 September low of $29.51 to yesterday's $53.58 high

Lithium stocks

Lithium stocks fell on reports that two US investment banks are seeking a buyer for a large parcel of Pilbara Minerals shares at a 4% discount to yesterday's closing price of $3.31.

• Pilbara fell 5.74% to $3.12
• Liontown Resources lost 4.66% to $0.76
• Vulcan fell 3.7% to $4.16

Banking sector

It was a mixed day for the big banks.

• Westpac dropped 0.28% to $30.03
• Macquarie slipped 0.16% to $225.80
• CBA gained 0.24% to $134.25
• NAB edged up 0.08% to $37.01

ASX 200 technical analysis

This week's rejection from the multi-week trend channel resistance 8250.00/8260.00 raises questions about the ASX 200’s upside prospects. However, as long as it holds above the recent 8111.30 low, there remains potential for upside.

Aware that if the ASX 200 loses support around 8120.00/8100.00, it indicates a deeper pullback towards 7900.00 is underway.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 3 October 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.}