ASX 200 afternoon report: 24 October 2024

The ASX 200 is trading 9 points (0.14%) higher at 8227 as of 3.00pm AEDT.

Market recovers after morning dip

The ASX 200 dropped to a two-week low of 8183.6 shortly after the market opened this morning. However, buyers stepped in when United States (US) 10-year yields gave back some of their overnight gains.

US debt on investors' radar

While US voters seem indifferent to the ballooning national debt—evident from the lack of political debate ahead of the election—investors are sharply focused on it. A slight decline in yields now triggers a risk-positive response, whereas even a minor rise prompts traders to sell.

Both US political parties intend to run deficits regardless of the election's outcome. However, the deficit is expected to grow more substantially under Donald Trump at +2-3% of gross domestic product (GDP), compared to Kamala Harris at +1-2% of GDP. Although US debt concerns remain in the spotlight, these worries tend to fade quickly.

ASX 200 stocks

Banking sector

Today's rebound has been driven by increased buying activity in major banks.

• ANZ gained 1.6% to $31.86
• CBA added 1.5% to $143.88
• NAB rose 1.07% to $39.03
• Macquarie gained 0.84% to $234.10
• Westpac climbed 0.58% to $32.21

Property sector

Easing yields helped the interest rate-sensitive property sector recover from Tuesday's downturn.

• Centuria Capital gained 2.85% to $1.98
• REA added 1.45% to $230.26
• Mirvac climbed 1.13% to $2.23
• Goodman added 0.64% to $36.09

Healthcare stocks

Healthcare stocks also saw gains.

• Telix Pharmaceuticals surged 3.36% to $21.82
• Sonic Healthcare gained 1.71% to $27.61
• CSL added 1.58% to $295.85
• Ramsay Healthcare climbed 0.88% to $42.18

IT sector

The ASX information technology (IT) sector is on track for its seventh consecutive session of declines, having fallen almost 11% from the 2743.5 record high reached in mid-October. Wisetech Global has been responsible for the majority of the sector's losses.

• Wisetech share price dived 6.68% to $98.95, within eyesight of the $94.38 level it was at before its bumper earnings report in August

Mining sector

• Fortescue fell 3.16% to $19.14. Its quarterly production update today showed it shipped 11% less iron ore than it did in the prior quarter
• Rio Tinto lost 0.44% to $117.96
• BHP slipped 0.40% to $42.26

ASX 200 technical analysis

This week, the ASX 200 has been grappling with multi-week trend channel resistance, currently located in the 8325/30 range.

Following a sharp retreat from this resistance zone on Tuesday, the ASX 200 would need to break through support at 8110/00 to indicate a medium-term high at 8384.5 and suggest a deeper pullback is underway. Until that happens, a rebound remains possible.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 24 October 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.}