As we head into October, volatility has started to brew beneath the surface. In the US, volatility on the stock level is testing multi-year highs, and locally, it wasn’t that long ago that we saw the most volatile reporting season in recent memory. And in the last 24-hours, with the infamous October less than one week old, we’ve started to see big moves across stock and commodity markets.
The ASX 200 surged +1.1% on the second day of October, enjoying its best session in six weeks, as the market appeared to enjoy fresh funds flowing into the major stocks and sectors. Gains took the index back within striking distance of its all-time high as the influential financials and miners lifted the broad market, with 8 of 11 major local sectors closing higher, with energy stocks, real estate plays and health care also notching gains of more than 1% each.
After a choppy session, the ASX200 closed slightly lower on the first day of October, with BHP Group (BHP) shaving 17 points off the index, which ultimately slipped just three points. The market seesawed through the day as investors weighed reports of a halt to BHP’s China-bound iron ore shipments alongside concerns over a potential U.S. government shutdown.
The ASX200 slipped 0.2% on Tuesday after the RBA and Michele Bullock threw a wet towel over the “Rate Cut Party”, although she really only maintained her logical, cautious narrative.
The ASX 200 put in a stellar performance on the penultimate day of September, advancing by +0.9% and reducing the month's decline to 1.2% with just today remaining. Gains weren't overly broad-based, with less than 60% of the main board closing higher, but when the “Big Four Banks” advance on average more than 1.8% the index is almost guaranteed to rally, and when it's supported by the influential healthcare names, and a rampant gold sector, gains become magnified ultimately delivering the best day since September the 4th.
The timing is striking: October is just days away, and the U.S. faces yet another potential government shutdown. If it occurs, key releases such as next Friday’s September jobs report would be delayed. Historically, shutdowns tend to inject short-term volatility but rarely have a lasting market impact, as they are often averted at the last minute or resolved quickly, a fitting backdrop for October’s reputation for turbulence.
The ASX 200 closed up +0.1% on Thursday, but it was a very polarised performance under the market's hood, with 8 of the main 11 sectors retreating, with some standout performances across the resources space required to hold the index in positive territory.
The ASX200 fell 0.9% on Wednesday, driven lower by the financials and healthcare stocks. The market struggled early on, following a soft session on Wall Street, before the selling intensified after the monthly inflation read came in hotter than expected. Consumer prices rose 3.0 per cent in the year to August, slightly above the 2.9% expected, effectively killing any hope the RBA would cut interest rates next week.
The ASX200 rose 0.4% on Tuesday, posting its 3rd consecutive gain, led by the financials and in particular the Big Four banks, which averaged a gain of ~0.8%. The materials sector was again strong, testing its 12-month high under the power of the large-cap iron ore miners and rampant gold market, which we will look at later, as China gave the precious metal another reason to charge higher.
The ASX 200 finished +0.4% higher on a fairly choppy Monday, which saw a very strong local market opening, eventually losing half of the early gains. The gains were very stock/sector specific, with only 6 of the main 11 sectors closing higher, but a stomping +2.6% session by the materials stocks was enough to drive the market higher, with gold equities again the shining light with the precious metal breaking well above the $US3,700/oz milestone.
The ASX 200 surged +1.1% on the second day of October, enjoying its best session in six weeks, as the market appeared to enjoy fresh funds flowing into the major stocks and sectors. Gains took the index back within striking distance of its all-time high as the influential financials and miners lifted the broad market, with 8 of 11 major local sectors closing higher, with energy stocks, real estate plays and health care also notching gains of more than 1% each.
After a choppy session, the ASX200 closed slightly lower on the first day of October, with BHP Group (BHP) shaving 17 points off the index, which ultimately slipped just three points. The market seesawed through the day as investors weighed reports of a halt to BHP’s China-bound iron ore shipments alongside concerns over a potential U.S. government shutdown.
The ASX200 slipped 0.2% on Tuesday after the RBA and Michele Bullock threw a wet towel over the “Rate Cut Party”, although she really only maintained her logical, cautious narrative.
The ASX 200 put in a stellar performance on the penultimate day of September, advancing by +0.9% and reducing the month's decline to 1.2% with just today remaining. Gains weren't overly broad-based, with less than 60% of the main board closing higher, but when the “Big Four Banks” advance on average more than 1.8% the index is almost guaranteed to rally, and when it's supported by the influential healthcare names, and a rampant gold sector, gains become magnified ultimately delivering the best day since September the 4th.
The timing is striking: October is just days away, and the U.S. faces yet another potential government shutdown. If it occurs, key releases such as next Friday’s September jobs report would be delayed. Historically, shutdowns tend to inject short-term volatility but rarely have a lasting market impact, as they are often averted at the last minute or resolved quickly, a fitting backdrop for October’s reputation for turbulence.
The ASX 200 closed up +0.1% on Thursday, but it was a very polarised performance under the market's hood, with 8 of the main 11 sectors retreating, with some standout performances across the resources space required to hold the index in positive territory.
The ASX200 fell 0.9% on Wednesday, driven lower by the financials and healthcare stocks. The market struggled early on, following a soft session on Wall Street, before the selling intensified after the monthly inflation read came in hotter than expected. Consumer prices rose 3.0 per cent in the year to August, slightly above the 2.9% expected, effectively killing any hope the RBA would cut interest rates next week.
The ASX200 rose 0.4% on Tuesday, posting its 3rd consecutive gain, led by the financials and in particular the Big Four banks, which averaged a gain of ~0.8%. The materials sector was again strong, testing its 12-month high under the power of the large-cap iron ore miners and rampant gold market, which we will look at later, as China gave the precious metal another reason to charge higher.
The ASX 200 finished +0.4% higher on a fairly choppy Monday, which saw a very strong local market opening, eventually losing half of the early gains. The gains were very stock/sector specific, with only 6 of the main 11 sectors closing higher, but a stomping +2.6% session by the materials stocks was enough to drive the market higher, with gold equities again the shining light with the precious metal breaking well above the $US3,700/oz milestone.
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