ASX 200 afternoon report: April 3, 2023
ASX 200 market update as of April 3, 3.15pm AEDT.
The ASX 200 trades 34 points higher (0.48%) at 7212 at 3.15 pm.
The ASX 200 has started April in the same buoyant mood that it ended March, led by strong gains in the Energy Sector after OPEC+ announced a surprise cut to oil production.
Energy sector
The announcement of a total production cut of over 1 million barrels per day in May spurred the price of crude oil 8% higher this morning to above $81.00 per barrel, building on its 9.25% gain last week.
- Beach Energy added 4.95% to $1.49
- Woodside Energy added 2.82% to $34.28
- Santos climbed 2.46% to $7.07.
Last quarter the Nasdaq soared an incredible 20%, its best quarter since 2020, as the interest rate market flipped from expecting rate hikes to rate cuts courtesy of the banking crisis.
IT stocks
Taking advantage of the tech tailwind from offshore, it’s been a good day for local IT names.
- Tyro Payments added 7.2% to $1.54
- Novonix added 5.1% to $1.33
- Megaport added 4.85% to $4.32
- Sezzle added 4.67% to $0.79c.
Banking sector
The Reserve Bank Board of Australia meets tomorrow at 2.30 pm to discuss the next move or possible lack of movement in the RBA’s official cash rate. The interest rate market is confident that the RBA will pause its rate hiking cycle at 3.60%.
However, the forecasting community is evenly divided between those expecting a pause and those expecting another 25bp rate hike to 3.85%. You can read our thoughts on tomorrow’s RBA here.
The big four banks extended last week’s rally led by ANZ.
- ANZ gained 1.57% to $23.29
- Westpac added 1.32% to $21.95
- CBA added 1.22% to $99.51
- NAB gained 0.63% to $27.90.
Lithium stocks
It was a mixed day for Lithium stocks as Lake Resources added 10.11% to $0.49c after reporting independent testing showed its lithium carbonate produced from its Kachi Operation in Argentina has grades and purity in excess of 99.8%.
Meanwhile, a U.S. investment bank has downgraded its Lithium price forecasts which weighed on other Lithium names.
- Galan Lithium fell 3.67% to $1.05
- Pilbara Minerals fell 3.3% to $3.81
- Allkem fell 1.77% to $11.67.
Coal sector
A fall in China’s March Caixin manufacturing PMI, to 50.0 vs 51.7 expected, has weighed on the big miners.
ASX 200 technical analysis
Last week’s rebound in the ASX 200 aligns with our view that the ASX 200 has been looking for a low. Providing it continues to hold above support at 6900, the pullback from the February 7567 high is viewed as a countertrend (an "ABC" Elliott Wave correction), and we look towards resistance 7350/70 area (March highs).
ASX 200 daily chart
- TradingView: the figures stated are as of April 3rd, 2023. 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
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Explore the markets with our free course
Learn how shares work – and discover the wide range of markets you can spread bet on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade on over 13,000+ popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
