ASX 200 afternoon report: 14 May 2024

The ASX 200 trades 33 points (-0.43%) lower at 7716 at 3.10pm AEST.

Today's session for the ASX 200 was almost a carbon copy of yesterday's morning session, as the index glided lower from the opening bell on very thin volumes. The main point of differentiation is that the ASX 200 is yet to rebound from the day’s lows as it did late yesterday afternoon.

While some of the selling seen this week may be a continuation of the sell order that poleaxed the market last Thursday, some investor caution makes sense ahead of a busy week that kicks off at 7.30pm tonight.

The Government will hand down its third Federal Budget since being elected, seeking to utilise its strong fiscal position to strike the right balance between providing cost-of-living relief without inflaming the RBA's inflation concerns. Media reports suggest the government expects its cost-of-living relief measures, including rent and power bill, to help inflation return to the RBA's 2-3% target by Christmas. We think the government is overlooking the link that households' money saved in one area will likely be spent elsewhere.

ASX 200 stocks

Real estate sector

• Charter Hall: - 2.15% to $11.82
• Vicinity Centres: - 1.3% to $1.90
• Scentre: -1.11% to $3.12
• Goodman: - 1% to $33.41

Iron ore sector

Despite the price of iron ore continuing to provide a budgetary windfall as it trades around $115 per tonne, the big miners have fallen today.

• Rio Tinto: + 1.14% to $127.57
• Fortescue: - 0.42% to $25.94
• BHP: - 0.38% to $43.08
• Mineral Resources: - 0.31% to $76.16

Banking sector

Several of the banks are now trading ex-dividend, which generally sees a weaker period of trading in the sessions ahead.

• Macquarie: - 0.58% to $188.98
• ANZ: - 0.50% to $28.07
• Westpac: - 0.6% to $26.55
• NAB: - 0.4% to $33.88
• CBA: - 0.3% to $118.77

Gold sector

Gold closed lower overnight at $2336 (-1.03%) as traders squared up ahead of the release of critical PPI and CPI data in the US.

• Perseus Mining: - 2.16% to $2.26
• Northern Star Resources: -1.42% to $14.54
• Regis Resources: - 0.72% to $2.05

Health care sector

• Ramsay Health Care: + 1.79% to $51.70
• Sonic Healthcare: + 1.74% to $27.49
• Cochlear: + 0.5% to $326.46
• Biotech giant CSL traded flat at $279.99

ASX 200 technical analysis

We remain of the view that the pullback from the 7910 high is missing another leg lower (Wave C) towards 7390ish to complete a three-wave ABC Elliott Wave correction. Thursday's heavy sell-off was an initial indication that Wave B topped out at last week's 7814 high and that Wave C lower has commenced. A sustained move below 7700 is needed to increase confidence in this view.

ASX 200 daily chart

• ^{Source: Tradingview. The figures stated are as of 14 May 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.}