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ASX200: RBA Monetary Policy Statement and Corporate Earnings in Focus
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It's a quieter day on the economic calendar, with no major stats to provide direction. The RBA's monetary policy statement and corporate earnings will be in focus, however.
The Majors
It was another bullish day for the ASX200 on Thursday, which rose for a 3rd consecutive day.
Following a 0.93% gain on Wednesday, the ASX200 rose by 0.48% to end the day at 7,427.99.
Better than expected trade data from Australia and market reaction to the FED’s tapering and interest rate plans delivered support.
Upbeat sentiment towards the economic outlook also delivered support, with reopening plans market positive.
The Stats
Australia’s trade surplus narrowed from A$15.077bn to A$12.243bn, versus a forecasted narrowing to A$12.200bn.
According to the ABS,
- Goods and services exports fell A$3,081m (6%) to A$44,969m, with the decline attributed to falling iron ore prices.
- Imports of goods and services declined A$586m (2%) to A$32,725m driven by continued global supply chain constraints.
The Market Movers
It was a bullish day for the banks. CBA and Macquarie Group rose by 1.40% and by 1.34% respectively to lead the way. ANZ (+0.88%) and NAB (+0.42%) also found support. Westpac rose by a more modest 0.22%.
Commodity stocks had a mixed session, however. Fortescue Metals Group Ltd fell by 1.39%, with Rio Tinto ending the day down by 1.54%. BHP Group and Newcrest Mining ended the day up by 0.25% and by 0.37% respectively.
Leading the way on Thursday was Nib Holdings, which rallied by 5.78% off the back of quarter earnings.
At the other end of the table, Domino’s PIZZA Enterprises slumped by 18.4%. Growth concerns in certain markets and input price inflation, along with analyst downgrades, weighed on Thursday.
Other Asian Markets
Elsewhere, it was also a bullish session as the markets responded to the FED policy decision and forward guidance from overnight.
The CSI300 and the Nikkei 225 ended the day up by 0.99% and by 0.93% respectively, with the Hang Seng Index rising by 0.80%.
The Day Ahead
It’s a quiet day ahead on the Asian economic calendar. There are no material stats due out of Australia or China to provide the ASX200 with direction.
From the RBA, the Monetary Policy Statement will draw interest, however. Sentiment towards the economic outlook will likely be key areas of focus alongside employment and inflation.
Away from the economic calendar, corporate earnings and commodity prices will need monitoring.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.
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