ASX 200 afternoon report: 19 October 2023

The ASX 200 is trading 122 points (1.73%) lower at 6,955 as of 2:30 pm AEDT.

Market sentiment sours

The ASX 200 has taken a significant hit today, with all sectors showing losses as the optimistic tone observed last week continues to dissipate following an explosion at a hospital in Gaza and higher-than-expected economic data sending U.S. yields surging to new highs.

Tight labour market

Adding to concerns, employment figures for September indicate that the Australian labour market continues to be tight. The Australian economy added 6,700 jobs in September, compared to the expected 20,000, while the unemployment rate fell to 3.6% from 3.7%. While some may point to signs of softening, the unemployment rate is 0.3 percentage points lower now than it was before the RBA raised rates for the first time in May 2022.

Upcoming inflation report

All eyes are on next Wednesday's Q3 inflation report, which has little room to deliver an upside surprise ahead of the November RBA Board meeting. Otherwise, a rate rise surprise for Melbourne Cup Day is looming.

Today's market movement

Health care sector

The ASX 200 health care sector has been run over again today, taking its total decline for the year to -14.34%.

• Telix Pharmaceuticals: -12.02% at $9.00
• CSL (biotech giant): -2.10% at $233.87
• Cochlear (bionic ear company): -2% at $250.35

Consumer-facing stocks

Consumer-facing stocks fell as the probability of an RBA rate hike in November continues to rise.

• Aristocrat Leisure: -2.39% at $38.45
• Adairs: -1.69% at $1.31
• Domino's: -1.22% at $51.78
• JB Hi-Fi: -1.17% at $44.68

Big banks

• Macquarie Bank: -3.16% at $163.30
• Westpac: -1.66% at $21.10
• CBA: -1.67% at $9.73
• NAB: -1.42% at $29.12
• ANZ: -1% at $25.56

Big miners

Yesterday's better-than-expected Chinese GDP data has provided little support today for the big miners as mineral resources dived 4.58% to $60.63.

• Mineral Resources: -4.58% at $60.63
• Rio Tinto: -1.78% at $115.34
• BHP: -1.66% at $45.11
• Fortescue: -0.18% at $21.86

Gold stocks

Providing shelter in stormy waters, gold stocks rallied as the price of bullion soared above $1950 overnight on geopolitical tensions.

• Northern Star Resources: +3.88% at $11.93
• Regis Resources: +1.07% at $1.66
• Evolution Mining: +0.56%
• Newcrest Mining: +0.36% at $25.21

ASX 200 technical analysis

In late September, we turned tactically bullish on the ASX 200 (just above 7000), looking for a rebound towards range (7440) highs and possibly year-to-date highs (7567). Stops on the bullish view are a sustained close below 6900/70ish.

ASX 200 daily chart

• _{TradingView: the figures stated are as of October 17, 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.}