Market Wraps

Evening Wrap: Bond yield breakout pushes ASX lower, Woodside rallies, US futures slip

Fri 21 Oct 22, 4:47pm (AEST)

The S&P/ASX 200 closed 54 points lower, down -0.80%.

 The local sharemarket finishes the week down -1.2% as bond yields break out to new highs, oil stocks have a crack at 2-year highs, the IMF expects global growth to decelerate to 2.7% next year, Asia tech exports take a dive and a scorecard of which countries are most behind the yield curve.

Let's dive in.

Today in Review

Fri 21 Oct 22, 4:25pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 6,676.8 -0.80%
All Ords 6,869.9 -0.71%
Small Ords 2,668.7 -0.13%
All Tech 1,980.1 -0.33%
Emerging Companies 2,067.3 +0.23%
AUD/USD 0.6258 -0.37%
US Futures
S&P 500 $3,661.75 -0.37%
Dow Jones $30,303.0 -0.16%
Nasdaq $11,011.25 -0.72%
Name Value % Chg
Energy 11,305.7 +1.99%
Information Technology 1,398.7 -0.05%
Materials 15,348.2 -0.30%
Health Care 39,102.3 -0.91%
Consumer Staples 12,228.3 -1.05%
Consumer Discretionary 2,701.3 -1.12%
Financials 6,297.9 -1.22%
Communication Services 1,352.5 -1.32%
Industrials 5,936.6 -1.67%
Real Estate 2,781.4 -1.82%
Utilities 6,560.6 -2.33%

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Rejigging the order of the Evening Wrap. We're moving some of the more word heavy segments like 'Announcements' and 'Broker updates' to the bottom.

An unsurprisingly weak session for the ASX 200, given the broad-based declines on Wall Street. A few thoughts in the Post Market Brief below.

  • All sectors were red except Energy

  • Energy weathered the storm as Woodside shares continued to rally following its production upgrade on Thursday. Coal stocks also rallied strongly, with most names up around 5%

  • Tech heavyweights like Wisetech, Xero and Altium reversed early gains to mostly close around positive territory

  • Materials also outperformed on a relative basis thanks to higher iron ore prices

  • Rate sensitive sectors like Utilities, Real Estate and Industrials led to the downside

  • 62% of the top 200 advanced


  • Japan inflation was unchanged at 3.0% in September

    • Core inflation accelerated to an 8-year high of 3.0% in September from 2.8% in August

    • This is challenging the Bank of Japan’s ultra-dovish stance which has seen the Yen slump to 32-year lows against the US dollar 

  • UK consumer confidence was -47 in October from -49 in September

    • Ahead of economist expectations of -52

    • Confidence remains close to September levels, which were the weakest level since the survey was launched in 1974 

  • IMF’s World Economic Outlook expects global growth to slow from 3.2% this year to 2.7% next year

    • “The global deceleration will be broad-based, and the 2023 projection is less than half of last year’s 6 percent expansion,” the IMF report said

    • “Countries accounting for about a third of the global economy are estimated to have a two-quarter contraction in real gross domestic product this year or next.”


  • Iron ore futures on the Dalian Commodity Exchange rose 1.6%

Quick bites 

  • Asia tech exports nosedive: “Recent data from Asia’s tech-oriented economies suggest waning export demand and slowing production momentum. The adverse effects of macroeconomic and geopolitical risks suggest that demand for the region’s tech exports will slow in the coming months,” said ANZ Research

Asia tech exports
Source: ANZ Research
  • Behind the curve scorecard: A chart of interest rates minus headline inflation across the world

Global policy rate less inflation scorecard
Source: ANZ Research
  • S&P 500 puts: Retail put/call ratios has risen to near all-time highs. But going long when everyone is hedging downside risk has seen some rather solid gains since 2000 

US retail only put call ratios vs S&P 500
Source: SentimenTrader, Game of Trades

Latest news

Post market brief

Now that I think about it, the script has been pretty straightforward.

  1. Yields go up, the market sneezes, possibly tests positive for covid

  2. Depending on how aggressively yields go up, the market stumbles or takes another leg down

  3. Yields plateau and start to trade sideways. The market thinks the Fed's going to pivot and bounces from oversold levels

  4. Yields break out again and we go back to (1)

Right now, we're back at the beginning of the cycle. Bond yields are breaking out again, and climbing 2008 highs.


S&P/ASX 200: Another red day. The ASX 200 has a bit more breathing room before a potential undercut of recent lows. Let's see how the 6,650 level holds

XJO chart
XJO chart (Source: TradingView)

S&P/ASX 200 Energy: Follow through strength from energy heavyweights Santos and Woodside. XEJ having a crack at levels not seen since February 2020

XEJ chart
XEJ chart (Source: TradingView)


  • Life360 (ASX: 360) +7.3% will roll out higher prices for new monthly subscriptions. Pricing for annual subscriptions remains unchanged

  • Stanmore (ASX: SMR) +5.3% reaffirmed its 2H22 guidance despite the continued unseasonal wet weather and ongoing inflationary pressures   

  • Adairs (ASX: ADH) +3.9% management reaffirmed FY23 guidance and said trading in the first 16 weeks remains in-line with expectations

  • Siteminder (ASX: SDR) +3.1% recorded 1Q23 revenue growth of 30.5% to $35.7m

    • “Transaction revenue growth continues to significantly outperform the travel recovery reflecting the increasing customer uptake and usage rates across all of our transaction products.” 

  • Mercury (ASX: MCY) +2.6% upgraded its FY23 EBITDA guidance by $40m to $620m due to higher hydro power generation 

  • Aussie Broadband (ASX: ABB) -0.5% said 1Q23 revenue was up 4.6% QoQ to $184.4m despite “strong price based competition without the need for heavy promotion use” 

  • Cleanaway (ASX: CWY) -1.9% said it expects FY23 earnings to be higher than FY22 due to contributions from its Sydney Resource Network takeaway

  • Allkem (ASX: AKE) -1.8% expects its Olaroz Stage 2 expansion to hit production status in 2Q23 instead of 4Q22, total capital expenditure for the project also jumped 12% to US$425 

  • Bowen Coking Coal (ASX: BCB) -13.3% successfully raised $85m at 30 cents per share, a 20% discount to its last traded price 

Broker updates 


Top Gainers

Code Company Last % Chg
S66 Star Combo Pharma... $0.175 +45.83%
LVE Love Group Global... $0.10 +38.89%
AXI Axiom Properties Ltd $0.078 +25.81%
A1G African Gold Ltd $0.08 +25.00%
HCD Hydrocarbon Dynam... $0.017 +21.43%
View all top gainers

Top Fallers

Code Company Last % Chg
TOY Toys'R'US ANZ Ltd $0.047 -24.19%
PNR Pantoro Ltd $0.135 -20.59%
OLY Olympio Metals Ltd $0.145 -19.44%
SIO Simonds Group Ltd $0.155 -18.42%
AJL AJ Lucas Group Ltd $0.067 -18.29%
View all top fallers

52 Week Highs

Code Company Last % Chg
ICT Icollege Ltd $0.245 +11.36%
AKG Academies Austral... $0.40 +8.11%
NHC New Hope Corporat... $7.39 +7.26%
TIE Tietto Minerals Ltd $0.70 +1.45%
ATL Apollo Tourism & ... $0.90 +1.12%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
PNR Pantoro Ltd $0.135 -20.59%
SIO Simonds Group Ltd $0.155 -18.42%
RBL Redbubble Ltd $0.485 -8.49%
KRR King River Resour... $0.012 -7.69%
TGN Tungsten Mining NL $0.076 -7.32%
View all 52 week lows

Near Highs

Code Company Last % Chg
WVOL Ishares Edge MSCI... $34.14 -0.76%
WBCPI Westpac Banking C... $103.00 +0.14%
PMGOLD Gold Corporation $25.88 -0.81%
VVLU Vanguard Global V... $57.90 -1.08%
BILL Ishares Core Cash... $100.40 +0.02%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SBM ST Barbara Ltd $0.46 0.00%
AMS Atomos Ltd $0.10 -4.76%
WAM WAM Capital Ltd $1.675 -0.89%
OPT Opthea Ltd $0.985 +3.68%
AMI Aurelia Metals Ltd $0.11 0.00%
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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