The ASX rallied 1.9% after open with every sector opening in positive territory.
Morning buyers have turned to sellers with the market now trading just 0.5% higher.
Likewise, major US indices rallied more than 1.5% after open but sold off into close, finishing the overnight session in negative territory.
The ASX 200 had an RSI reading of just 23.6 by market close on Thursday. The market has not been this oversold since the March 2020 selloff.
Investors appear to be using these 'technical bounces' to sell into strength. The market has struggled to hold onto gains in the past week.
Iron ore prices continue to inch higher, up 0.5% overnight to US$138.75 a tonne. Iron ore miners are delivering outsized gains this morning, including:
BHP (ASX: BHP) 1.8%
Rio Tinto (ASX: RIO) 2.5%
Universal Store (ASX: UNI) and Best & Less Group (ASX: BST) are two retailers rallying 16% and 13% on no news. Before today's bounce, both stocks were down around -20% year-to-date. This could be bounce from oversold levels, exacerbated by the illiquid nature of both stocks.
Tech stocks continue to bare the brunt of selling as investors pivot away from richly-valued sectors.
On the announcement front:
#1 - Newcrest Mining (ASX: NCM) tanked -7.3% after reporting its December quarterly results. Newcrest said it remains on track to deliver its full year production guidance. The company’s all-in sustaining costs fell 11% to $1,127/oz.
#2 - PointsBet (ASX: PBH) shares are down another -5% after the bookmaker reported its slowest turnover growth in the past two years. The company's stock is now down -32% year-to-date and down -70% from February 2020 highs.
#3 - Ramelius Resources (ASX: RMS) fell -3.9% after saying production was within the lower end of guidance for the December quarter. The company experienced a slight drop in grade and throughput at its Mt Magnet project. Impacts of a delayed WA border reopening and covid-related issues could weigh.
Finance Writer & Social Media
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