IG Markets Afternoon Thoughts

IG Markets Afternoon Thoughts

Good afternoon,

Across Asia, regional markets have started the new quarter in mixed fashion after better-than-expected US data eased fears of another recession overnight. The Shanghai Composite is the bigger gainer, up 1.7% after stronger-than-expected manufacturing data spurred buying interest. Elsewhere, the Nikkei 225 is flat while the Hang Seng and Kospi are both down 0.1%.

In Australia, the ASX 200 is currently 0.1 lower at 4576, having traded as high as 4617 this morning Advancing sectors today include the materials, telecoms and energy sectors while consumer names along with the financials and healthcare sectors are detracting points.

The market has really slipped away in the afternoon session, with participants seemingly uninterested in putting any money to work ahead of the weekend, and at the beginning of the month. The market did briefly jump higher following the stronger Chinese manufacturing numbers, but the rally was very short lived.

Whilst September was one of the strongest on record, it seems there’s a bit of apprehension heading into October. October is typically one of the weakest months of the year as well. Coming off the back of such strength, a lot of participants believe we could be in for a much quieter month, especially given the propensity for end-of-year tax loss selling from US mutual funds.

ENDS

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