Australian Stocks Suspended in Friday Flats
Aussie stocks shook off overnight leads to open Friday trade in slight green. After four straight sessions of attrition, the local bourse made small tracks to regain the 250 points lost across the trading week. Investors did their best to cling onto early gains, but concentrated selling in the Big Banks gave way to wide losses.
Iron Ore’s 2.7% surge overnight looked like an encouraging set-up for iron ore producers who have been under attack this week. Mining giant BHP saw over a 3.5% tumble in its stock’s value over the week came under fire again in Friday trading. The stock crossed below the psychological $28.00 mark to trade at the day’s low of $27.70. BHP’s peers endured a fairer fate with FMG and RIO both locking in gains in Friday’s session.
Banks have also continued to endure selling pressure for the fourth straight session. Bargain hunters jumped in early to nab themselves a bargain but were swiftly pushed aside by sellers looking to unwind their positions ahead of the long weekend. Investors continue to echo the idea of “catching a falling knife” as the market scratches it’s head over when might be a good time to buy back into the financials.
In afternoon trading stocks oscillated in mild loses. Skinny trading volumes for Friday’s session reflected traders’ hesitation to commit to any real positions ahead of the long weekend and the highly anticipated Non-Farm Payroll numbers due out from The US overnight.
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Frequently Asked Questions about this Article…
Australian stocks opened in the green on Friday as they attempted to recover from four straight sessions of losses. Despite the initial gains, concentrated selling in the Big Banks led to wider losses by the end of the day.
Iron ore prices surged by 2.7% overnight, which initially seemed promising for iron ore producers. However, BHP's stock still tumbled over 3.5% during the week, trading below the $28.00 mark. In contrast, FMG and RIO managed to secure gains in Friday's session.
Australian banks have faced selling pressure for four consecutive sessions. Although bargain hunters attempted to buy early, they were overshadowed by sellers looking to exit their positions before the long weekend.
'Catching a falling knife' refers to the risky strategy of buying stocks that are rapidly declining in value, hoping to catch them at their lowest point before they rebound. Investors are cautious about this approach with financial stocks currently under pressure.
Trading volumes were low on Friday as traders hesitated to commit to significant positions ahead of the long weekend and the release of the highly anticipated Non-Farm Payroll numbers from the US.
BHP's stock experienced a significant decline, tumbling over 3.5% during the week and trading below the psychological $28.00 mark, reaching a low of $27.70 on Friday.
The Non-Farm Payroll numbers are a key economic indicator from the US that can influence global markets. Investors were cautious ahead of its release, contributing to the low trading volumes on Friday.
Unlike BHP, which saw a decline, FMG and RIO stocks managed to lock in gains during Friday's trading session, indicating a more favorable performance compared to BHP.
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