ASX 200 afternoon report: 25 January 2024
Your ASX 200 afternoon report.
The ASX 200 trades 22 points (+0.32%) higher at 7543 at 1.50 pm AEDT.
The ASX 200 is set for a fifth consecutive session of gains, signing off in style ahead of the Australia day long weekend. The rally for the local bourse comes despite a muted response to Chinese authorities' latest attempt to revive the spluttering stock market.
Overnight, Chinese authorities announced they would cut the Reserve Requirement Ratio (RRR), which determines the amount of cash banks must keep in reserve by 50 basis points (bp) effective 5 February to provide 1 trillion yuan ($140 billion) in long-term liquidity to the market.
The Chinese stock market, the CSI 300, has fallen over 45% from its 2021 high, and if authorities were hoping that an RRR cut would lift the mood around the stock market and economy, they would have been disappointed with the CSI 300s muted 0.95% gain at lunchtime today.
Today's market movement
Mining sector
Nonetheless, the announcement did see the price of iron ore rally 2.4% overnight to $135.15 per tonne, which helped the big mining stocks extend their rebound.
- Mineral Resources: +4.96% to $58.23
- Rio Tinto: +1.74% to $131.95
- Fortescue: +1.66% to $28.88
- BHP: +1% to $47.33
Energy sector
The latest EIA data showed that crude oil inventories in the US plunged by 9.233 million barrels last week. The larger-than-expected draw saw the price of crude oil close above $75.00 per barrel for the first time in a month.
- Beach Energy: +2.93% to $1.58
- Viva Energy: +1.32% to $3.45
- Woodside: +0.55% to $31.14
Financial sector
The ASX 200 financial sector is on track for a tenth week without loss.
- Suncorp: +1.66% to $14.26
- Westpac: + 0.25% to $23.62
- ANZ: + 0.11% to $26.62
- CBA was trading lower at $114.36 (-0.25%) after running into sellers operating ahead of $116.00 yesterday.
Tech sector
Earnings disappointment for Tesla this morning, which saw the EV maker's share price tumble 5.96% in after-hours trading, has weighed on the tech sector.
- Block: -5.86% to $94.89
- EML Payments: -3.83% to $0.88c
- Appen: -3% to $0.33c
- Megaport: -2.4% to $9.37
ASX 200 technical analysis
The ASX 200's 330-point (4%) pullback to last week's 7322 low likely completed the pullback we were looking for at the start of this year. This interpretation suggests a retest of the 7633 double top is likely in the coming sessions. Nonetheless, the ASX 200 has bigger battles to fight, and we remain neutral while the ASX 200 remains below range and year-to-date highs at 7633.
ASX 200 daily chart
- Source: TradingView. The figures stated are as of 25 January 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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.