ASX 200 afternoon report: 21 May 2024

The ASX 200 trades 6 points (-0.09%) lower at 7857 at 3.00pm AEST.

The ASX 200 has eased today in quiet trading, giving back a small portion of yesterday's now almost obligatory Monday rally. From the 7492 low it struck on April 19, the ASX 200 has closed in positive territory on each of the past five Mondays.

However, with the Dow Jones once again failing to secure a foothold above 40,000—a level also rejected by the Nikkei—and the RBA meeting minutes from the May Board meeting offering little encouragement for the doves, a more cautious tone enveloped the local market.

RBA minutes reflect balanced approach amid uncertainty

The RBA meeting minutes noted that while the RBA discussed raising rates in May, the Board elected to keep the cash rate steady at 4.35%, as "staff forecasts presented a credible path back to the inflation target, with the risks surrounding the forecasts judged to be balanced. "The minutes also highlighted that due to a "higher-than-usual level of uncertainty about the economic outlook, members judged that it remained reasonable to look through short-term variation in inflation to avoid excessive fine-tuning."

Evidence of this uncertainty is shown in Westpac's Consumer Sentiment Index released this morning, which fell 2.4% to 82.4 points in April, remaining in "deeply pessimistic" territory as persistent inflation and high interest rates continued to weigh on Australian households.

ASX 200 stocks

Uranium stocks

Turning to the highlights of today's session, uranium stocks remain in focus as the US ban on enriched uranium from Russia, which starts on August 11, opens the door for other producers.

• Paladin Energy: + 2.21% to $17.85
• Deep Yellow: + 1.60% to $1.74
• Boss Energy: + 0.51% to $5.88
• Bannerman Energy: + 0.32% to $4.73

IT stocks

ASX-listed IT stocks gained, boosted by the Nasdaq, which hit a fresh record overnight.

• Technology One: + 5.24% to $16.86
• ZIP: + 3% to $1.30
• Life360: + 3% to $16.47
• Humm Group: + 2.33% to $0.44c

Banking sector

• ANZ: + 0.43% to $28.29
• NAB: - 0.43% to $34.58
• Macquarie: - 0.3% to $193.50
• CBA: - 0.25% to $121.46
• Westpac: - 0.19% to $26.92

Mining sector

• BHP: + 0.28% to $45.85 after hitting a new three-month high earlier in the session at $46.09
• Rio Tinto: -1.09% to $134.39
• FMG: - 0.84% to $27.01
• Mineral Resources: - 0.77% to $78.88

ASX 200 technical analysis

Last week's rally above the early May 7814 high resulted in a more neutral bias. A sustained close above the weekly trend channel resistance, currently at 7960ish, is needed to move to a bullish bias. Aware that weakness below support at 7720/00 would warn that a deeper pullback is underway.

ASX 200 daily chart

• ^{Source: Tradingview. The figures stated are as of 21 May, 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.}