ASX200 battered as CBA, WOW disappoint
The local market has descended deep into the red today, with disappointing reporting from CBA and Woolworths sparking a broad and savage sell-off. The index has fallen around 125 points, or 2.15%.
Given the very weak leads from international markets overnight, and the residual concern over yesterday’s RBA statement, it was always going to be a tough day for the ASX200. However, things went from bad to worse when two of the market heavy weights released sub-par trading updates. Selling has been fast and furious, amid solid volumes.
The protagonists, CBA and Woolworths have both fallen a staggering 5%, and even defensive stalwart Telstra is sharply lower. The big miners are faring better than most, with FMG one of few stocks actually trading higher in the session after gains in iron ore.
From a technical perspective, the local index is at a precipice. Today’s decline sees it breach the major support level around 5750. If there’s follow through, traders will be looking way down to 5400 for the next major level.
The Aussie dollar has continued to trade inversely to the equity market, firming despite this morning’s average Retail Sales figures. The bullish sentiment remains after yesterday’s RBA statement, which was interpreted as a little hawkish after failing to provide clear guidance on its easing agenda. One Australian dollar currently buys 0.7960 USD.
Frequently Asked Questions about this Article…
The ASX200 fell sharply due to disappointing reports from major companies like CBA and Woolworths, which led to a broad sell-off. Additionally, weak international market leads and concerns over the RBA statement contributed to the decline.
CBA and Woolworths both released sub-par trading updates, causing their stocks to fall by 5%. This significant drop in two major companies sparked a broader sell-off in the ASX200.
While CBA and Woolworths saw significant declines, even defensive stocks like Telstra were sharply lower. However, some big miners, such as FMG, managed to trade higher due to gains in iron ore.
The ASX200 has breached a major support level around 5750. If the decline continues, traders are looking at 5400 as the next significant level to watch.
The Australian dollar is trading inversely to the equity market, firming despite average Retail Sales figures. The currency remains bullish following a hawkish interpretation of the RBA's recent statement.
The market interpreted the RBA's statement as slightly hawkish because it did not provide clear guidance on its easing agenda, which has contributed to the bullish sentiment for the Australian dollar.
Weak leads from international markets overnight added to the negative sentiment, making it a challenging day for the ASX200 even before the disappointing reports from CBA and Woolworths.
Today's market movements highlight the volatility and impact that major company reports can have on the ASX200. Everyday investors should be aware of these dynamics and consider the broader market context when making investment decisions.
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