ASX 200 afternoon report: 16 April 2024

The ASX 200 trades 141 points (-1.82%) lower at 7611 at 3.00pm AEST.

ASX 200 has experienced a significant downturn, mirroring the intensity of the sell-off witnessed in March 2023 when the eagerly awaited China reopening trade abruptly failed. During that episode, the ASX 200 fell over 671 points (-8.88 %) from a high of 7567, to a low of 6895 before stability returned to the local bourse.

This time around, the carnage is the result of a perfect storm: stretched positioning across global equity indices, a third successive month of firm US inflation data contributing to unease within a deeply troubled bond market, against the rising risk of miscalculation and escalation in the Middle East.

ASX 200 stocks

All eleven sectors of the ASX 200 are currently in the red, with those most sensitive to rising interest rates facing the steepest declines.

Consumer-facing stocks

The ASX 200 consumer discretionary fell 2.4% led lower by

• Kogan.com: - 4.89% to $7.20
• Domino's Pizza: - 4.48% to $36.82
• Harvey Norman: - 4.13% to $4.52
• Nick Scali: - 3.87% to $14.17

Banking sector

The ASX 200 financial sector has fallen 2.12%, led lower by

• Westpac: - 2.75% to $25.44
• ANZ: - 2.66% to $28.23
• CBA: - 2.53% to $111.74
• NAB: - 2.27% to $33.16

Property sector

The dream run for property stocks during the first quarter of 2024 is now well and truly a distant memory as the ASX 200 property sector lost another 2.26%.

• Charter Hall Group: - 5.5% to $11.74
• Mirvac: - 3.39% to $2.13
• Goodman Group: - 2.41% to $31.05
• Vicinity Centres: - 2.2% to $1.88

Resource sector

The strength of today's storm shadow overshadowed the release of China's Q1 GDP reading, which came in at 5.3%, much stronger than market expectations of 5.0%. Combined with the better-than-expected China PMI data earlier this month, fund managers and investors currently underweight China may be forced to review their stance on Chinese equities.

However, that has proved to be of little assistance to the big miners today.

• Rio Tinto: - 3.35% to $128.11
• Mineral Resources: -3.28% to $68.97
• Fortescue: - 2.84% to $15.01
• BHP group: -1.98% to $44.86 despite copper hitting a fresh 15-month high overnight

Gold stocks

Emphasising the indiscriminate nature of today's sell-off, gold stocks have tumbled despite bullion surging 1.68% overnight to $2383.

• Gold Road Resources: - 5.59% to $1.60
• Regis Resources: - 2.05% to $2.15
• Perseus Mining: - 1.54%
• Evolution Mining: - 1.02% to $3.89

ASX 200 technical analysis

From the opening bell today, the ASX 200 has cut through several key support levels like a hot knife through butter. The confirmed break of support at 7750/40ish, followed by the break of 7700, warns that a test of 7500 is underway. Remember, if we do end up seeing an 8.88% pullback like we saw in March 2023, it targets a move to 7200.

• ^{Source TradingView. The figures stated are as of 16 April 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.}