Evening Wrap: ASX 200 edges higher as miners climb and REITs bounce

• ASX 200 finished slightly higher, as a bounce in miners and real estate offset a pullback in energy and banks, with CBA closing at its lowest since early February

• Materials led the move up 1.6%, driven by copper's V-shaped recovery over the past six sessions, while gold miners pushed the All Ords Gold Index up 2.5%

• Australia's composite PMI slipped to 50.8 from 52.7, the weakest reading of the quarter, with manufacturing back in contraction and private sector employment falling for the first time in four months

Let's dive in

• ASX 200 traded slightly higher, a miners and real estate stocks bounce, offset by a pullback for energy stocks and banks threatening to roll over to three-month lows

• Materials (+1.6%) continues to work off lows, from that ~11% pullback (25-Aug to 15-Sep). This is largely driven by the V-shaped move for copper, where prices surged 8% in the last six sessions (though down 1.2% in today's session to US$6.83/lb). BHP rose 1.4% to $62.07, while most copper pure-play names rose 1-3%. Gold miners also traded firmly higher, with the All Ords Gold Index up 2.5%.

• Real Estate (+1.3%) locks in a three-day win streak, up 2.1% in total. Though its very much a bounce for ants, considering the index has fallen 12.5% since 5-Aug. The Aussie 10-year has slipped to a two-week low of 5.25% (from highs of ~5.4%). So a key inversely correlated metric is starting to make a move in the right direction.

• Healthcare (-0.6%) stocks closed at a fresh seven-month high on Tuesday, and experienced a slight pullback today. The sector has been trading relatively sideways since 20-Aug, as it digests a massive ~44% move from June lows. Leading names like CSL and Cochlear have some envious momentum, though their FY26 results point to very modest growth (a classic example of how a stock earns a re-rate by being a little less bad).

• Financials (-0.6%) managed to catch a bid off session lows of (-1.3%). The all-important CBA still fell 0.8%, lower than the 13-May low (this was when CBA tell 10.4% in a single day). Now trading at levels last seen in February.

• Tech (-0.6%) continues to be a momentum graveyard. This sector has somehow slumped ~17% since 25-Aug, at a time where a comparable index like the iShares Expanded Tech-Software ETF has gained 4.8% and trading closed to year-to-date highs. A name like Wisetech is down 53% year-to-date, still ~6% away from the lows it briefly hit on 23-Jun and 24-Jul. Yeah you could look at those points as some support, but then you look over at a name like Xero, down 48% year-to-date and undercut its Jun-Jul lows like butter. Xero tumbled 4.7% to $58.20, the lowest since May 2019. Some of the value-propositions for various software names might make sense, but boy is it a slog.

• Overall, not much to see here. Oil, yields and rate expectations look to be peaking and starting to move in the right direction. But the market remains choppy as it works through a seasonally weak September, and breadth has been persistently poor outside of healthcare, energy and a recent resurgence in miners.

• Australia's S&P Composite output index down to 50.8 from 52.7, the weakest reading across Q3

  • Manufacturing PMI fell to 49.3 from 52.0, its first negative reading since March, with the drop in manufacturing output the steepest in 21 months amid a renewed contraction in order books

  • Private sector employment fell for the first time in four months, and while the reduction was modest it was the strongest since October 2020 and broad-based across sectors

  • Input price inflation picked up to a three-month high and output charges rose more strongly than in August, with panellists frequently citing the Middle East conflict and its effect on energy and fuel costs, though both rates remain well below Q2 levels