ASX 200 afternoon report: 29 October 2024

The ASX 200 trades 29 points (0.36%) higher at 8250 at 3.20pm AEDT.

The ASX 200 gains momentum

The ASX 200 is on track for a third consecutive day of gains, with lighter-than-usual trading volumes. This rally precedes a busy week filled with United States (US) tech earnings and key economic data releases from both the US and Australia.

US data in focus as inflation reports approach

Today, the focus is on the US Job Openings and Labor Turnover Survey (JOLTS) data and the Conference Board (CB) consumer confidence index. Investors are closely watching to see if the trend of stronger-than-expected US economic data will continue. Robust data this month suggests that the US economy is more likely to grow than slip into recession, presenting a different outlook compared to last month.

Earnings from Alphabet, the parent company of Google, are set to release early tomorrow, followed by the crucial Australian third-quarter (Q3) inflation data at 11.30am AEDT. Headline inflation is expected to increase by 0.4% quarter-on-quarter (QoQ), resulting in an annual rate of 2.8%. The trimmed mean is anticipated to rise by 0.7% QoQ, reducing the annual trimmed mean inflation rate to 3.4% year-on-year (YoY) from 3.9% in the previous quarter.

Market hopes for RBA rate cut

If the trimmed mean registers at 3.4% or lower, it could significantly boost the likelihood of a Reserve Bank of Australia (RBA) interest rate cut before year-end. Such a move could be a catalyst for the ASX 200 to secure its fifth month of gains in six.

ASX 200 stocks

BNPL stocks

Buy Now, Pay Later (BNPL) stock ZIP surged, reaching its highest level since February 2022 after releasing its first-quarter (Q1) trading update. ZIP reported an earnings before interest, taxes, depreciation, and amortization (EBITDA) of $31.7 million for the quarter, marking a 233.7% increase from the previous corresponding period. This growth was driven by a 43% revenue jump from ZIP's US business, which overshadowed local earnings.

• ZIP surged 12.37% to $3.14

Banking sector

The big banks led today’s rally ahead of their quarterly reports next week, with Westpac reporting first on Monday.

• NAB gained 1.06% to $39.08
• CBA rose 1.06% to $144.35
• Westpac was up 0.67% to $32.75
• ANZ climbed 0.52% to $31.61
• Macquarie edged 0.44% higher to $233.51

Mining sector

• Mineral Resources rose 7.44% to $37.11, after investors positively received its responses to three ASX queries last Friday
• Rio Tinto added 0.71% to $120.95
• BHP climbed 0.55% to $43.20
• FMG gained 0.41% to $19.49

Retail sector

Premier Investments’ share price soared following news that Myer would acquire Premier’s apparel brands in Australia and New Zealand in exchange for new shares.

• Premier Investments’ soared 10.70% to $34.19
• Myer’s fell 1.55% to $0.95

Other stocks

• Appen rose 5.04% to $1.98
• Tyro Payments gained 2.92% to $0.79
• Wisetech Global continued its rebound, gaining 2.22% to $115.51

ASX 200 technical analysis

The ASX 200 continues to consolidate below multi-month trend channel resistance, currently hovering in the 8350 - 8360 range and staying above crucial support at 8110/00. A sustained break of either level is needed to signal the ASX 200's next significant move.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 29 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.}