The ASX 200 closed 0.76% higher at 8,783.20 to start the week, reclaiming its 30 day SMA for the first time since late August and pushing back into positive territory YTD. The gains are important as far as momentum, carrying genuine technical and psychological weight against what has been a tricky macro backdrop of late.
ASX 200 Today: Leaders and Laggards
The index’s heavyweight sectors helped carry Aussie markets higher on the day, led by Financials, which gained 1.56%, and Materials, which added 1.52%. Industrials were almost flat, down just 0.08%, while Energy pulled back 0.41% alongside a dip in oil prices that are helpful for ongoing inflation concerns.
Looking to the individual leaderboard, Zip Co Ltd (ZIP) topped the gainers, rising 5.56% to $2.28 ahead of its upcoming quarterly trading update. Megaport Ltd (MP1) followed up with a 4.79% gain, Macmahon Holdings (MAH) added 4.51%, while Tasmea Ltd (TEA) rose 4.38% to $10.96. Ebos Group (EBO) gained 4.25% to $15.95, and 4DMedical (4DX) rounded out the top movers with a 4.20% gain to close at $4.22.
On the flip side of the divide today, EQ Resources (EQR) fell 7.69% to $0.30, with the pullback from recent ATHs now up to 44% in less than four weeks. Next up were TPG Telecom (TPG) down 4.90%, Mercury NZ (MCY) gave back 4.29%, Electro Optic Systems (EOS) fell 3.95% to $9.73, PLS Group (PLS) continued to fall back 3.71%, and Iluka Resources (ILU) rounded out the list, down 3.70%.
Data driving the day
The session’s two primary drivers were a pullback in Australian sovereign bond yields and an overnight rally in industrial metals, particularly copper, which approached record highs on rising demand forecasts tied to global infrastructure spending and AI data centre buildout.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
Australian yields eased across the curve, with the 3-year yield falling 2.7 basis points to 4.90%, the 10-year yield declining 2.5 basis points to 5.33%, and the 30-year yield dropping 3.0 basis points to 5.80%. While yields remain elevated by historical standards, the modest retreat was sufficient to ease valuation pressure on equities and encourage institutional capital back into dividend-paying large caps.
What Next?
The technical picture for the ASX 200 has improved at the margin. Reclaiming the 30-day SMA and returning to year-to-date gains are meaningful signals, but markets are likely to want to see follow-through over the coming sessions, with the recent trading range between 8650-8800 continuing to hold firm.
Much will depend on incoming US inflation data and the tone of the US earnings season, particularly from the major banks that will kick things off. Disappointing results from Wall Street’s financial sector could quickly spread over into Aussie markets, with plenty of eyes on the print, and the S&P 500 near record highs.
On the positive side, the combination of easing yields, copper’s approach to record highs, and the technical break above the 30 day SMA creates a more bullish setup than markets have seen in several weeks, yet it is still too early to call a shift in momentum. The first near term average may have been regained, yet the 200 day near 8825 is likely to be a firmer indicator as to how technical traders see things from here.
