ASX rebound fails to save market from another week of decline

Welcome to your five-minute recap of the trading day and the experts’ view.

Numbers: The ASX 200 recouped all of Thursday’s losses with a 1.9% rebound to close at 7,075.1 points, but that wasn’t enough to stop it ending in the red for a fourth straight week. Every sector closed in positive territory on Friday. Consumer Staples was the only sector not to post a gain of at least 1%, with the Technology sector leading the rebound with an increase of 7%.

The lifters: Block Inc. 15%, Life360 14.3%, Polynovo 14%

The latecomers : IGO -3.5%, Reece -3.1%, Gold Road Resources -2.3%

The truth : Positive Wall St futures helped the ASX 200 close at its intraday high on Friday, ending overnight market-boosting comments from Federal Reserve Chairman Jerome Powell. It eased market concerns, once again, that the Fed would resort to more aggressive interest rate hikes after another round of poor inflation numbers came out this week.

But there are plenty of other concerns for investors.

Iron ore saw its biggest weekly decline since mid-February as the spread of virus restrictions in China and a worsening housing crisis hit demand and dragged the materials sector down 4% for the week.

MFS Investment Management portfolio manager Rob Almeida said the broad market pullback – which includes Australia’s energy sector – could also reflect the fact that equities and crypto are no longer the only game in play. city.

“With higher rates, cash becomes a viable alternative to risky assets, leading to higher correlations between asset classes,” he said. At just the right time, the CBA raised rates on its deposit accounts for 2 million customers from 0.05% to 0.3%.

Tether, a reserve-backed stablecoin that is believed to be pegged 1:1 to the US dollar, fell as low as 95 US cents earlier in the global session, according to price data from CoinMarketCap. It was the last at 99 US cents.Credit:Bloomberg

Leave a Comment

Your email address will not be published.

Scroll to Top