ASX 200 afternoon report: 10 September 2024

The ASX 200 trades 30 points (0.37%) higher at 8017 at 3.10pm AEST.

ASX 200 gains on Wall Street rally

The ASX 200 surged at the open today, reaching an intraday high of 8057.9. This was just 91 points (1.13%) shy of its record high of 8148.7 before it pared some gains.

Today's positive performance was supported by a rebound on Wall Street, driven by hopes that tomorrow's second Presidential debate and consumer price index (CPI) data will alleviate current uncertainties.

Anticipation builds for presidential debate and CPI data

Recent polls show Donald Trump and Kamala Harris neck-and-neck in the race for the White House. A strong debate performance by either candidate could stabilise market sentiment as voters and betting markets rally behind a leader.

Additionally, if upcoming US inflation data falls below expectations, the Fed has more leeway to implement a substantial 25 basis point (bp) interest rate cut next week, should it find it necessary.

Local economic data disappoints

In Australia, today's consumer and business confidence data has disappointed. Consumer sentiment fell 0.5% in September to 84.6 after subdued gross domestic product (GDP) growth raised fears of an economic slowdown and job losses. Business confidence plunged to -4 in August, the lowest figure since November 2023. Notably, unemployment expectations rose sharply, while business employment intentions declined.

ASX 200 stocks

Financial sector

Despite the weak local data, the ASX 200 financial sector has continued its upward trajectory, hitting a new record high of 8507.

• Macquarie added 1.86% to $227.90
• Westpac climbed 1.24% to $32.23
• CBA rose 0.70% to $143.96
• NAB added 0.49% to $39.12
• ANZ edged 0.14% higher to $31.56

Energy sector

The ASX 200 energy sector has also gained, with dip buyers taking advantage of last week's 9.07% decline.

• Beach Energy added 2.34% to $1.09
• AGL Energy gained 1.83% to $11.68
• Woodside Energy climbed 0.42% to $23.89

Mining sector

Data released this afternoon showed that China's trade surplus surged to $91.02 billion in August 2024, up from $67.81 billion a year earlier and exceeding expectations of $83.90 billion. Exports jumped 8.7% year-on-year to a 23-month high, marking the fastest growth since March 2023. However, imports rose only 0.5%, below the expected 2% increase.

• Rio Tinto added 0.75% to $107.62
• BHP edged 0.13% higher to $38.81
• Fortescue fell 1.23% to $16.00
• Mineral Resources dropped 0.2% to $30.33

ASX 200 technical analysis

Last Wednesday's sharp sell-off raised the possibility that the ASX 200 has formed a double top at August's 8148 high and September's 8116 high. Based on this scenario, we expect a test of initial support level at 7850 before medium-term support at 7710/90, which includes the 200-day moving average and trend channel support.

A sustained break above 8150, would negate the downside risks and suggest a continued upward trend towards the 8230/50 region.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 10 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.}