ASX 200 afternoon report: 27 August 2024
The ASX 200 trades lower after reaching a four-week high, with energy and mining stocks rising, while the financial sector struggles.
![AUD](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/Adobe_AUD_07-11-2024.jpg/jcr:content/renditions/original-size.webp)
The ASX 200 trades 12 points (0.16%) lower at 8076 at 2.45pm AEST.
ASX 200 hits four-week high before easing
After yesterday's robust session of gains, which kicked off the final week of August, the ASX 200 has adopted a more cautious tone today.
The index is trading 12 points lower mid-afternoon after hitting a four-week high of 8107 earlier in the session. This comes ahead of a packed calendar featuring Nvidia's eagerly anticipated earnings report on Thursday morning and a key Australian inflation update tomorrow morning.
Key inflation update expected tomorrow
Last month, the monthly Consumer Price Index (CPI) indicator for June rose by 3.8% in the 12 months to June, easing from 4.0% in May. The core reading (annual trimmed mean) eased to 4.1% from 4.4% in May.
As July is the first month of the new quarter, this monthly CPI indicator will only provide updates on about 60% of the basket. Additionally, it will be skewed towards goods rather than the troublesome service components such as dining out, medical services, and transportation.
However, good news on the inflation front is anticipated tomorrow due to a sharp fall in energy prices following the start of the federal government's energy rebates. Headline inflation in July is expected to fall to 3.3% year over year (YoY), while the annual trimmed mean is expected to ease to 3.7% YoY- both edging closer to the Reserve Bank of Australia’s (RBA) 2-3% inflation target.
RBA rate cuts anticipated by year-end
The expected step down in inflation partially explains why the Australian interest rate market is currently pricing in 30 basis points (bp) of RBA rate cuts by year-end and a cumulative 77 bp of cuts by May 2025.
ASX 200 stocks
Today's action-packed earnings calendar has provided a wide range of beats and bombshells.
Healthcare stocks
- Nanosonics surged over 17% to $3.17, fuelled by revenues in the second half of the year 14% higher than those in the first half
Building and restoration stocks
- Johns Lyng initially plummeted 33% before paring losses, to be trading 25% lower at $4.19 following an unexpected miss on revenues and sales
Energy sector
- Woodside Energy climbed 4% to $27.44, thanks to a higher-than-expected interim dividend of 69c per share, despite a 14% decline in underlying profit to $1.63 billion
Mining sector
- BHP’s share price gained 2% to $41.65 after it reported revenues were up 3% for the year to $55.7 billion, and underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 4% to $29 billion
- Mineral Resources gained 1.97% to $46.01
- Fortescue added 1.86% to $18.63
- Rio Tinto added 0.74% to $111.87
Financial sector
- National Australia Bank (NAB) fell 1.23% to $37.29
- Commonwealth Bank of Australia (CBA) lost 1.10% to $137.29
- Westpac slipped 0.78% to $30.43
- Australia and New Zealand Banking Group (ANZ) fell 0.40% to $29.55
ASX 200 technical analysis
The ASX 200's rebound from the 7600/7500 support level, which includes the 200-day moving average, has reinforced its importance as the downside level to watch going forward.
While all the focus is currently on the topside and whether the ASX 200 can break its all-time 8148 high, we wouldn't be surprised to see a retest of the 7600/7500 level before year-end.
ASX 200 daily chart
![ASX 200 daily chart](http://a.c-dn.net/c/content/dam/publicsites/igcom/au/images/News-and-articles/asx-1708.png/jcr:content/renditions/original-size.webp)
- Source: TradingView. The figures stated are as of 27 August 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.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/Indices_global_component_banner.jpg/jcr:content/renditions/original-size.webp)
Explore the markets with our free course
Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this index strategy article, and try it out risk-free in your demo account.
Ready to trade indices?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Get fixed spreads from 1 point on FTSE 100 and Germany 40
- Protect your capital with risk management tools
- Trade more 24-hour markets than any other provider – 26 in total
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
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.