ASX 200 afternoon report: 12 December 2023

The ASX 200 trades 38 points (0.54%) higher at 7237 at 3.05 pm AEDT.

Today, the ASX 200 traded to a fresh 12-week high at 7241.20, following a positive lead from US stock markets overnight, and as China lifted sanctions on three Australian abattoirs.

We have maintained a bullish stance on the local and US equity markets in recent months. However, even we admit to being surprised by the carefree way equity markets are approaching this week’s key economic events, which have the potential to reshape events into year-end.

If markets were to get a hotter-than-expected US CPI print tonight, or Thursday morning’s Fed meeting is more hawkish than expected, the speed and scope of the 100bp or Fed rate cuts currently priced for 2024 will require hasty review.

Today’s market movements

IT sector

• Xero: + 4.26% to $108.82
• Tyro Payments: + 2.97% to $1.04
• Wisetech Global: + 2.47% to $69.98
• Altium: + 1.84% to $46.77

Consumer-facing stocks

The Westpac consumer confidence index rose 2.7%M/to 82.1 in December, helped by an RBA pause. Despite this, sentiment remains at recessionary levels. The NAB business conditions survey, which started the year at 21.6, fell to 9 in November as businesses grew more pessimistic.

• Myer Holdings: + 4.4% to $0.60c
• Adairs: + 3.25% to $1.74
• Costa Group: + 2.87% to $3.05
• Woolworths: +1.91% to $36.74

Banking sector

• ANZ: + 0.73% to $24.79
• NAB: +0.56% to $29.47
• CBA: +0.48% to $107.45
• Macquarie: + 0.5% to $169.96
• Westpac: + 0.21% to $21.99

Resource sector

The price of iron ore edged higher overnight to $135 per tonne, which saw Fortescue gain 1.77% today to $26.40, edging ever closer to its record high of $26.58.

• Mineral Resources: + 0.2% to $61.93
• Rio Tinto: + 0.2% to $129.11
• BHP: + 0.16% to $47.61

Lithium sector

• Galan Lithium: dived 10.34% to $0.52c
• IGO: - 4% to $7.70
• Liontown: -3.56% to $1.29
• Pilbara: -2.22% to $3.53

ASX 200 technical analysis

Providing the ASX 200 remains above the 200-day moving average at 7159 and horizontal support 7125/7100 area, the ASX 200 is well placed to extend gains towards range highs at 7380/7400. Aware that a sustained break above 7400 would lead to a push towards the February 7567 high.

ASX 200 daily chart

• _{Source TradingView. The figures stated are as of 12 December 2023. 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.}