ASX 200 afternoon report: 4 July 2024

The ASX 200 trades 88 points (1.14%) higher at 7828 at 3.30pm AEST.

After an unassuming start to the 2025 financial year earlier this week, the ASX 200 has surged above 7800 today, boosted by record highs on Wall Street and gains for key commodity prices overnight.

Wall Street rally and dovish FOMC minutes

The rally on Wall Street came following cooler economic data and the release of dovish Federal Open Market Committee (FOMC) meeting minutes. The meeting minutes referenced progress on inflation and have increased confidence that the Federal Reserve will start cutting interest rates in September.

ASX 200 Stocks

Materials sector

Today's rally on the ASX 200 has been led by the ASX 200 materials sector, benefitting from stronger commodity prices including iron ore which added 3.11% overnight to $113.45.

• Mineral Resources surged 4.74% to $57.95
• Fortescue gained 3.06% to $22.59
• BHP added 2.43% to $44.70
• Rio Tinto gained 2.39% to $124.01

Energy sector

The ASX 200 energy sector extended its rebound from the bottom of a two-year range and is up 4.35% this week. Coincidentally, the ASX 200 energy sector's low in 2022 was also struck the week of 4 July. The rally in the energy sector is being supported by a stunning rebound in the price of crude oil, trading at $83.36, on track for a fourth week of gains and speculation of a takeover for Santos.

• Santos surged 4.5% to $8.02
• Beach Energy added 1.5% to $1.52
• Woodside Energy gained 0.91% to $29.32

Financial sector

The ASX 200 financial sector, which is rarely too far from the action when the ASX 200 is rising, gained today. Away from the big banks, funds manager Magellan surged after it reported institutional inflows will offset the outflow of retail money and that performance fees are expected to improve on the back of strategic changes.

• Magellan surged 6.43% to $9.09
• CBA added 1.39% to $127.13
• ANZ gained 1.10% to $28.46
• NAB added 0.90% to $35.77
• Macquarie gained 0.71% to $205.06
• Westpac added 0.55% to $27.27

Gold stocks

ASX-listed gold stocks have rallied today after bullion gained overnight, supported by last night's cooler US economic data.

• Bullion gained 1.14% to $2356
• Evolution Mining gained 4.77% to $3.62
• Gold Road Resources added 3.15% to $1.80
• Regis Resources added 2.28% to $1.79
• Perseus Mining added 1.70% to $2.39

ASX 200 technical analysis

The ASX 200 has spent the past three months consolidating the rally from the late October 6751 low to the early April 7910.5 high. Provided the ASX 200 remains above support around 7670/50 (closing basis), which includes the recent 7654.2 low and uptrend support from the April 7492 low, a positive bias is in place. A sustained break above resistance at 7890/7910 would indicate that the uptrend has resumed towards 8000.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 4 July 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.}