Market Wraps

Evening Wrap: ASX up 3.2% this week, Fortescue rallies 4% and how does the market perform in April?

Fri 31 Mar 23, 4:39pm (AEST)

 The S&P/ASX 200 closed 55.5 points higher, up 0.78%. 

The ASX 200 finishes the week on a five-day winning streak, iron ore stocks lead the market as spot prices return to US$125 a tonne, China's services PMI jumps to the highest level since May 2011, Spanish headline inflation tumbles but core remains sticky and how does the ASX 200 perform in April?

Let's dive in.

Today in Review

Fri 31 Mar 23, 4:21pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,177.8 +0.78%
All Ords 7,373.3 +0.83%
Small Ords 2,823.3 +0.83%
All Tech 2,212.5 +0.73%
Emerging Companies 2,123.8 +1.91%
AUD/USD 0.6711 -0.01%
US Futures
S&P 500 $4,088.25 +0.20%
Dow Jones $33,075.0 +0.09%
Nasdaq $13,114.25 +0.25%
Name Value % Chg
Materials 18,507.1 +1.88%
Health Care 42,647.5 +1.09%
Information Technology 1,511.6 +0.83%
Real Estate 2,986.6 +0.59%
Financials 6,130.2 +0.54%
Consumer Discretionary 2,999.8 +0.43%
Communication Services 1,516.1 +0.33%
Utilities 8,369.7 +0.19%
Industrials 6,595.5 -
Consumer Staples 13,311.5 -0.03%
Energy 10,455.4 -0.84%

Enjoying the Evening Wrap? Sign up to get it sent directly to your inbox after every trading day.

ASX 200 Session Chart

Screenshot 2023-03-31 162159
ASX 200 gapped up and closed around session highs (Source: Market Index)


The ASX 200 finishes the week with a perfect win streak, up 3.2%. Global markets are experiencing a strong relief rally as the banking situation stabilises but its probably worth chucking in this quote that goes something along the lines of "the strongest rallies occur in bear markets". Does this rally have more legs to run or will we see another destabilising event?

  • Materials outperformed, led by Fortescue (+4.1%), Rio Tinto (+2.5%) and BHP (+2.5%)

  • Healthcare higher thanks to broad-based gains, Cochlear (+2.4%) and Ramsay (+2.0%)

  • Energy underperformed after Woodside (-1.9%) fell despite higher oil prices overnight


China’s Manufacturing PMI eased to 51.9 in March from 52.6 in the previous month.

  • Of note, China’s March steel PMI fell back into contraction territory (down 1.7 to 48.4) due to significant drops in inventories for both finished goods and raw materials

China’s Non-manufacturing PMI jumped to 58.2 from 56.3 in the previous month.

  • Service PMIs are now up for a third straight month to the highest level since May 2011

Latest news

Market Insights

Headline vs. Core Inflation

Headline inflation fell sharply across Europe in March. Data from Thursday night showed that:

  • Spain inflation 3.3% year-on-year in March from 6.0% in February

  • German inflation was 7.4% from 8.7% in the previous month

Spain inflation was well-below analyst expectations of 3.8% while Germany was a slight miss against expectations of 7.3%.

However, when you look at core inflation:

  • Spain core inflation was 7.5% in March from 7.6% in February

Generally speaking, when headline inflation falls, core is soon to follow. However, is this time different?

"The fact that there are still no signs of any disinflationary process, discounting energy and commodity prices, as well as the fact that inflation has increasingly become demand-driven, will keep the ECB in tightening mode," warned ING Economics.

Of interest, is how food inflation was up 22.3% in Germany, to a fresh high.

The ASX 200 in April

I recently compiled the average daily performance for the ASX 200 between June 1992 and March 2023. So how does the market perform in the month of April?

  • April and December are the strongest seasonal months of the year. Both netting an average gain of 0.11%.

  • As the average daily performance table below shows, the ASX 200 has historically been green in 7 of the first 8 days of April

  • I should probably put in a disclaimer that past performance is not an indicator of future returns

XJO avg performance
Source: Market Index

Talking Technicals: ASX 200

The ASX 200 is rallying into the 50-day and trendline. So let's see if the rally shows any signs of fatigue as it pushes these key levels.

What would be really interesting is if we see a bit of a lockout rally. As the name suggests, this is where the market V-shapes in such a powerful fashion it makes it really hard for investors and traders to get in (since there's no pullback).

XJO 2023-03-31 16-26-19
ASX 200 chart (Source: TradingView)

Interesting news and movers

Trading higher

  • +30.9% EML Payments (EML) – Earnings guidance

  • +25.0% Aurelia Metals (AMI) – Federation project update

  • +12.0% Jupiter Mines (JMS) – Earnings and strategy update

  • +11.9% Jervois Global (JRV) – Bounce after -50.8% in last three

  • +8.6% Novonix (NVX) – JV with TAQAT

  • Gold sector move: Gold Road (+5.6%), Bellevue Gold (+4.5%), Ramelius (+3.3%), Evolution (+3.0%), Northern Star (+2.3%)

Trading lower

  • -7.2% Appen (APX)

  • -6.3% HealthCo Healthcare & Wellness REIT (HCW) – Capital raising

  • -4.8% Lake Resources (LKE)

Broker updates

Morgan Stanley’s Q2 commodity strategy:

Base metals

  • “Base metals: global growth concerns cause uncertain outlook: We continue to favour aluminium driven by additional smelter cuts in Yunnan and see Chinese capacity less likely to return this summer, providing cost support.”

  • “South 32 remains our key pick, with 16% upside to our PT of $4.90 per share, generating healthy free cash flow yield of 5%/8% on base/spot in FY24e.”

  • “Alumina remains overweight as tight alumina market provides support.”

  • “For copper, we see 2Q support (MSe: US$4.20/lb, MSe 2H US$2.67/lb; Spot US$4.07/lb) but forecast a 140,000 tonne/240,000 tonne surplus for 2023-24. We take profits here, with Sandfire Resources to Equal-weight (from Overweight) as it trades near our new price target and we monitor the updates to MASTA)”

  • “29 Metals to Equal-weight (from Underweight) with price target $1.30 following a ~50% fall since December 2022.”

Iron ore

  • “We remain tactically bullish on iron ore, as the recovery in China continues and producing regions face weather disruptions.”

  • “However, by 2H we see iron ore being well supplied with China’s steel production tapering off to maintain flat year-on-year production and scrap use rising (displacing iron ore)”

  • “Preferred iron ore name remains Rio Tinto Overweight with ~10% upside to price target.”

  • “Fortescue Underweight is least preferred, lacking valuation support and risk of FFI spend chewing into future dividends.” 


  • “Cautious on demand, focus on volume and valuation.”

  • “We continue to see heightened risk of inventory de-stocking in the downstream battery market.”

  • “In our view, lithium remains a volume game, with volume expansions rather than price driving EPS growth in the medium term.”

  • “We upgrade Allkem to Overweight (from Underweight) given its market lading FY23-26 LCE growth of 331%.” 


Top Gainers

Code Company Last % Chg
ROODA Roots Sustainable... $0.014 +40.00%
HFY Hubify Ltd $0.03 +36.36%
EML EML Payments Ltd $0.555 +32.14%
XST Xstate Resources Ltd $0.013 +30.00%
MXO Motio Ltd $0.041 +28.13%
View all top gainers

Top Fallers

Code Company Last % Chg
PAB PATRYS Ltd $0.016 -23.81%
LRL Labyrinth Resourc... $0.011 -21.43%
NMR Native Mineral Re... $0.037 -17.78%
AEE Aura Energy Ltd $0.245 -16.95%
ENX Enegex Ltd $0.02 -16.67%
View all top fallers

52 Week Highs

Code Company Last % Chg
ROODA Roots Sustainable... $0.014 +40.00%
A2B A2B Australia Ltd $1.49 +15.50%
CYC Cyclopharm Ltd $1.88 +14.63%
EAX Energy Action Ltd $0.24 +14.29%
RSG Resolute Mining Ltd $0.423 +8.33%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
PAB PATRYS Ltd $0.016 -23.81%
NMR Native Mineral Re... $0.037 -17.78%
KLI Killi Resources Ltd $0.06 -13.04%
MBX My Foodie BOX Ltd $0.015 -11.77%
GRE Greentech Metals Ltd $0.10 -9.09%
View all 52 week lows

Near Highs

Code Company Last % Chg
OZBD Betashares Austra... $45.20 +0.31%
IKO Ishares MSCI Sout... $93.79 +1.56%
WVOL Ishares Edge MSCI... $35.56 +0.14%
STX Strike Energy Ltd $0.378 -1.95%
HLTH Vaneck Global Hea... $10.45 +0.38%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
CHC Charter Hall Group $11.01 +0.09%
CMW Cromwell Property... $0.56 +1.82%
LFSPA Latitude Group Ho... $90.57 0.00%
CWY Cleanaway Waste M... $2.375 -1.04%
GNG GR Engineering Se... $1.895 +1.34%
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.

Get the latest news and insights direct to your inbox

Subscribe free

Get free post-market insights with our Evening Wrap

Create an account to receive our concise, data-driven post-market recap, sent directly to your inbox, every day.

Along with the Evening Wrap, you'll join 100k+ investors who receive our Morning Wrap and Weekend Newsletter.