Market Wraps

Evening Wrap: ASX 200 higher, Woodside bounces 5%, Fed set to hike another 25 bps

Wed 22 Mar 23, 4:53pm (AEST)

 The S&P/ASX 200 closed 60 points higher, up 0.87%. 

The relief rally continues for a second consecutive day, Woodside bounces 5% thanks to higher oil prices and oversold conditions, gold stocks pull back sharply as spot prices ease from US$2,000 an ounce and the Fed is set to raise rates by 25 bps tomorrow morning.

Let's dive in.


Today in Review

Wed 22 Mar 23, 4:19pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,015.6 +0.87%
All Ords 7,200.7 +0.82%
Small Ords 2,732.9 +0.45%
All Tech 2,179.6 +0.77%
Emerging Companies 2,039.3 +0.60%
Currency
AUD/USD 0.6694 +0.40%
US Futures
S&P 500 4,038.75 +0.07%
Dow Jones 32,776.0 +0.01%
Nasdaq 12,877.0 +0.08%
Name Value % Chg
Sector
Energy 10,319.0 +4.19%
Consumer Staples 13,082.9 +1.77%
Consumer Discretionary 2,966.6 +1.42%
Information Technology 1,485.6 +1.34%
Utilities 8,023.5 +1.02%
Health Care 42,329.3 +0.95%
Communication Services 1,487.5 +0.70%
Financials 6,097.4 +0.60%
Materials 17,394.1 +0.49%
Industrials 6,517.1 +0.44%
Real Estate 2,975.9 -0.41%

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ASX 200 Session Chart

ASX 200 intraday
The ASX 200 gaps up and closes near session highs (Source: Market Index)

Markets

The ASX 200 is now on a two-day winning streak, up 1.7%. The market is starting to find its footing again, but the upcoming FOMC could be a freight train ... or the light at the end of the hiking cycle.

  • Energy stocks continued to rebound, led by Woodside (+5.2%)

  • Staples posted broad-based gains, with heavyweights Woolworths, Coles and Endeavour all around 1.6% higher

  • Discretionary was another outperformer led by travel names like Flight Centre (+3.4%), Webjet (+3.6%) and Corporate Travel (+3.0%)

Economy

No major economic announcements but the next 36 hours is absolutely stacked with UK inflation data, the Fed's interest rate decision and Bank of England rate decision.


Latest news


Market Insights

A pretty short one today. See you guys tomorrow morning for the spicy Fed rate decision.

Fed fireworks

The Fed's interest rate decision and pressor will take place tomorrow at 5:00 am AEDT.

The market expects another 25 bp hike to take the fed funds rate to 4.75% - 5.0%. According to CME's Fedwatch tool, the probability of 25 bps is currently 84.9%. Whereas the likelihood of a pause sits at just 15.1%.

This will mark the Fed's ninth consecutive hike and the fastest on record going back to 1963. The previous cycle was nine hikes as well, but it took three years from December 2015 to December 2018.

So 25 bps is effectively priced in but what else is priced in is 100 bp worth of rate cuts by the September FOMC. Commentary will be key, so let's see if Powell takes the brakes off the usual 'hike till the job is done'.


Interesting news and movers

Trading higher

  • +5.9% Helloworld (HLO) – Acquires stake in Australiareiser (Tue)

  • +5.8% Aeris Resources (AIS) – New sulphide lens discovery

  • Uranium sector move: Boss Energy (+6.3%), Deep Yellow (+5.8%), Aurora Energy (+5.5%)

  • Energy sector move: Woodside (+5.2%), Beach Energy (+5.0%), New Hope (+4.9%), Santos (+3.3)

Trading lower

  • -19.5% Weebit Nano (WBT)

  • -8.5% Myer (MYR) - Ex-dividend

  • -4.8% Global Lithium (GL1) – Continuation selloff, down 11% in previous three

  • Gold sector move: Perseus Mining (-4.8%), Gold Road (-4.3%), Northern Star (-3.6%), Evolution Mining (-3.1%)


Broker updates

Citi’s take on Tech and reporting season:

  • “We expect Tech stock performance to continue to be driven by macro, but with yields close to peaking, the rates/yield headwind is easing in our view.”

  • “Interestingly, recent results did not show a wide spread impact from slowing macro (except for Megaport and Fineos).”

  • “Siteminder, Xero and Domain are our top picks, while Zip and Appen are at the bottom.”

Macquarie’s lithium market update:

  • “We remain constructive on the lithium market outlook despite near-term headwinds from lower lithium prices and slow EV sales.”

  • “We lower our short-term price forecasts but upgrade long-term outlook, underpinned by higher operating and development costs.”

  • “MIN and PLS are our preferred Australian producers while Tianqi remains our key pick for Chinese miners.”

Macquarie’s iron ore note:

  • “The March China steel survey highlighted an improvement in market sentiment in both steel and iron ore.”

  • “We maintain our preferences for BHP given its organic growth options; MIN benefits from lithium exposure and DRR offers low volatility exposure.”


Scans

Top Gainers

Code Company Last % Chg
LRL Labyrinth Resourc... $0.015 +61.11%
TMT Technology Metals... $0.315 +34.04%
FIN FIN Resources Ltd $0.016 +33.33%
LBY Laybuy Group Hold... $0.035 +29.63%
RCL Readcloud Ltd $0.064 +28.00%
View all top gainers

Top Fallers

Code Company Last % Chg
REM Remsense Technolo... $0.087 -33.08%
NNG Nexion Group Ltd $0.02 -25.93%
SIX Sprintex Ltd $0.038 -22.45%
WBT Weebit Nano Ltd $5.59 -19.45%
AU1 The Agency Group ... $0.025 -19.36%
View all top fallers

52 Week Highs

Code Company Last % Chg
LAU Lindsay Australia... $1.00 +9.29%
XASG Alphinity Global ... $5.41 +1.50%
QMAX Betashares Nasdaq... $21.07 +0.57%
AIA Auckland Internat... $8.25 +0.49%
-
View all 52 week highs

52 Week Lows

Code Company Last % Chg
REM Remsense Technolo... $0.087 -33.08%
NNG Nexion Group Ltd $0.02 -25.93%
AU1 The Agency Group ... $0.025 -19.36%
ORN Orion Minerals Ltd $0.012 -14.29%
AYA ARTRYA Ltd $0.225 -13.46%
View all 52 week lows

Near Highs

Code Company Last % Chg
SEMI Global X Semicond... $9.88 +0.82%
RSG Resolute Mining Ltd $0.365 -2.67%
MSTR Morningstar Inter... $8.71 +0.69%
BILL Ishares Core Cash... $100.50 0.00%
IGB Ishares Treasury ETF $100.14 -0.85%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
BMN Bannerman Energy Ltd $1.38 +5.34%
SDR Siteminder Ltd $3.09 +2.66%
BVS Bravura Solutions... $0.33 +3.13%
BENPG Bendigo and Adela... $99.90 -0.63%
VIT Vitura Health Ltd $0.375 -3.85%
View all RSI oversold

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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