Afternoon Report / ASX rolls over

By Market Matters 17 September 20

ASX rolls over

Market Matters Afternoon Report 17th September 2020

WHAT MATTERED TODAY

The ASX came under pressure today, giving back all of yesterday’s gains and some. A combination of weak Iron Ore prices hurting the miners, particularly Fortescue (FMG) which fell 6.4% and some disappointment around the commentary provided by the Fed which saw US Futures trade lower during our time zone. The market looked good yesterday with sustained buying throughout the session, today was an almost carbon copy of yesterday’s move, but on the downside.

The Fed was probably more upbeat about the economy than some expected, and locally today we saw stronger-than-expected August employment data with the increase of 111,000 new jobs which was lot stronger than expected. Better data = less stimulus and that was the cause of some angst by the look of its today.

Asian markets were weaker to a similar degree while US Futures as suggested above provided a negative backdrop for our session.

By the close, the ASX 200 was down -72pts / -1.22% to 5883. Dow Futures are trading down 412pts/-1.47%

ASX 200 Chart

ASX 200 Chart

BROKER MOVES

·         Cleanaway Cut to Equal-Weight at Morgan Stanley; PT A$2.50

·         Home Consortium Rated New Add at Morgans Financial Limited

·         Coca-Cola Amatil Raised to Positive at Evans & Partners Pty Ltd

·         Reject Shop Rated New Add at Morgans Financial Limited

·         Home Consortium Ltd Rated New Add at Morgans Financial Limited

·         Danakali Rated New Speculative Buy at Canaccord

OUR CALLS

Growth portfolio: We trimmed BHP, sold SSM, bought RHC and SGR

Major Movers Today

Have a great night

James / Harry & the Market Matters Team

Disclosure

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