ASX 200 afternoon report: 12 November 2024
The ASX 200 dips for a second day as Chinese stimulus concerns weigh on mining stocks, offset slightly by positive consumer and business confidence.
The ASX 200 trades 22 points (-0.27%) lower at 8243 as of 3.15pm AEDT.
ASX 200 dips as Chinese stimulus disappoints
The ASX 200 fell for a second consecutive day, reversing part of last week’s post-election gains.
The primary factor behind this pullback is an underwhelming Chinese stimulus package announced on Friday, compounded by lacklustre Chinese inflation data over the weekend. These developments have raised concerns that Chinese authorities may not be responding quickly enough to tackle sluggish demand and rising deflation risks.
Speculation is also growing that Chinese authorities might be holding back stronger fiscal measures to cushion against potential tariffs expected from Donald Trump.
Consumer and business confidence on the rise
In a positive shift, Australian consumer and business confidence indexes posted strong gains today, offering some relief amidst the market’s turbulence.
The Westpac-Melbourne Institute consumer sentiment index rose 5.3% to 94.6 in November, up from 89.8 in October. This increase brought the index to its highest point in two and a half months, as consumers became more optimistic about the economic outlook and less concerned about a potential Reserve Bank of Australia (RBA) interest rate hike.
Meanwhile, the National Australia Bank (NAB) business confidence index rose to 5 points in October from -2 previously. Input costs decreased across both labour and materials, and final prices also ticked lower. Notably, employment expectations continued to improve, reflecting a more optimistic business environment.
ASX 200 stocks
Mining sector
Major mining stocks continue to erase the gains that followed China’s dovish pivot in late September.
- BHP retreated 1.6% to $40.94
- Rio Tinto dropped 1.5% to $117.69
- South32 fell 1.5% to $3.64
- Sandfire Resources slipped 1.45% to $10.14
Uranium stocks
The mining sector's losses were overshadowed by uranium miner Paladin Energy, whose share price plunged following a challenging production update from its Langer Heinrich mine in Namibia.
- Paladin Energy plunged 28.5% to $6.92
- Deep Yellow fell 6.37% to $1.21
- Boss Energy lost 4.81% to $2.97
- Silex Systems slid 4.71% to $5.45
Gold mining
Gold miners also faced pressure as rising yields, and a stronger US dollar pushed bullion prices 2.4% lower overnight to $2619 - now over 6% below its late October high of $2790.
- Evolution Mining dropped 3.2% to $4.71
- Regis Resources fell 3.13% to $2.48
- Gold Road Resources declined 2.88% to $1.77
Consumer-facing stocks
- Cettire soared 8.14% to $1.60
- Temple & Webster gained 3.57% to $11.46
- Myer added 2.72% to $0.94
- Adairs climbed 2.35% to $2.61
Banking sector
- ANZ gained 1.43% to $32.59
- Macquarie rose 0.95% to $231.00
- CBA edged 0.17% lower to $149.54 after hitting a record high of $150.85 earlier in the session
- NAB fell 3.33% to $38.66 after going ex-dividend
ASX 200 technical analysis
The ASX 200 continues to rotate below a band of resistance that includes multi-month trend channel resistance at around 8365 and its 8384 record high, and above important support at 8110 - 8100.
A sustained break of either of these levels is needed to indicate in which direction the ASX 200’s next significant move will come.
ASX 200 daily chart
- Source: TradingView. The figures stated are as of 12 November 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.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
Discover how to trade the markets
Learn how indices work – and discover the wide range of markets you can trade CFDs on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this index strategy article risk-free in your demo account.
Ready to trade indices?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Get fixed spreads from 1 point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Protect your capital with risk management tools
- Trade more 24-hour markets than any other provider
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.