ASX 200 afternoon report: 30 July 2024
Find out below who have been the shakers and movers in today’s session on the ASX 200.
The ASX 200 trades 40 points (-0.51%) lower at 7949 at 2.30pm AEST.
Fortescue shares take a hit
The ASX 200 declined today, influenced by cautious market sentiment ahead of a data-rich global calendar and a significant transaction involving Fortescue shares traded at a substantial discount, impacting the index.
Market analysts suggest that the seller of the $1.9 billion parcel of Fortescue shares is likely to be an ESG-focused fund, forced to sell down its shareholding following Fortescue's decision to slow its push into green hydrogen.
Inflation data looms, RBA decision awaited
Tomorrow's Q2 2024 Australian inflation update will be pivotal in determining whether the Reserve Bank of Australia (RBA) will raise rates before year-end or stay on hold at 4.35%. The expectation is for headline inflation to rise by 1% quarter-on-quarter (QoQ) for an annual rate of 3.8%. Trimmed mean is expected to rise by 1% QoQ, which would see the annual rate of trimmed mean inflation remain at 4.0% year-on-year (YoY), above the RBA's forecast for June of 3.8%.
While we think the RBA will be willing to look through a warm print tomorrow of 0.9% - 1.1% QoQ for trimmed mean, a "red hot" print of 1.2% or higher would put intense pressure on the RBA to raise rates again. Ahead of the release, the Australian interest rates market is pricing in 6 basis point (bp) or a 23% chance of a 25 bp rate hike at next week's RBA Board Meeting.
ASX 200 stocks
Mining sector
- Fortescue's shares dived 9.07% to $18.50
- Mineral Resources fell 3.29% to $52.22
- BHP lost 1.12% to $41.60
- Rio Tinto fell 0.56% to $115.22
Banking sector
- CBA gained 0.35% to $135.38, a fresh record high
- Westpac added 0.02% to $29.99
- Macquarie slipped -0.01% to $207.14
- ANZ fell 0.99% to $28.53
Energy sector
Concerns around energy demand in China saw crude oil fall 0.59% during the Asian time zone to $75.36, its lowest level in seven weeks.
- Viva Energy fell 2.16% to $3.17
- Beach Energy lost 1.56% to $1.41
- Woodside Energy lost 1.36% to $26.77
- Santos lost 1.28% to $7.74
IT stocks
This week sees four of the "magnificent 7" report Q2 2024 earnings in the US starting with Microsoft tomorrow morning. Local IT stocks, still bruised after last week's tumble, elected to take no chances.
- DroneSheild lost 6.12% to $1.38
- Megaport fell 3.12% to $10.57
- Humm Group lost 3.30% to $0.44
- Wisetech Global fell 2.21% to $93.35
ASX 200 technical analysis
Last week, the ASX 200 tested and successfully held the 7900/7850 support region, which keeps in place the uptrend and prospects of a retest and break of the 8,083 record high. A sustained break below 7900/7850 would indicate that the recent break higher has failed and opens the way for a deeper pullback initially to 7700.
ASX 200 daily chart
- Source: TradingView. The figures stated are as of 30 July 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.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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