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S&P/ASX 200 set to jump, here are the ASX shares to watch closely

Sydney futures contracts are saying the S&P/ASX 200 (INDEXASX: XJO) is likely to open in the green this morning. Here’s what you need to know…

It was another wild day for markets on Wednesday with the ASX 200 down over 1% at the open, only to rally 2% and ultimately capitulate to finish 5 points down as the session came to a close.

It was the opposite in the US, with markets sustaining gains leaving the Dow Jones up 2.2% for the day as the beaten up ‘value’ companies staged a strong recovery.

European markets benefitted from the announcement of a $1.1 trillion fiscal stimulus proposal under which the likes of Germany and France will effectively share the risk of debt used to fund the periphery.

Importantly, some $500 billion will come in the form of grants rather than loans. French car makers including Renault (EPA:RNO) and Peugeot (EPA:UG) were up over 10% each.

Bulls, Bears and… the rest

Experts continue to pontificate over whether this sustained rally signals the end of the previous bear market, or the continuation of the existing bull as they attempt, with little accuracy, to predict what will happen next.

In my view, the unique nature of COVID-19 means traditional comparisons are moot, hence suggestions this may be a dead cat bounce is overstated.

The ASX200 was supported by the banking sector on Wednesday, as National Australia Bank (ASX:NAB) and Westpac (ASX:WBC) rallied 7.8% and 8.6%, respectively, following a positive report for uber-bear UBS. In fact, NAB announced a near quadrupling of its share purchase plan to $1.25 billion from $500 million.

Similarly, it was the most beaten down ‘value’ companies benefitting from a clear rally out of defensives and materials, into cyclicals, as cement-maker Boral (ASX:BLD) and CSR Ltd (ASX:CSR) both rallied over 7%.

Gold shines

The gold sector was hardest hit as prices fell as the economic outlook improves.

Northern Star Resources Ltd (ASX:NST) and Newcrest Mining (ASX:NCM) fell over 7% each. However, you might expect short-term rallies as weak economic data continues. Vitamin-maker Blackmore Ltd (ASX:BKL) entered a trading halt seeking $117 million in fresh capital, yet the company was facing real pressure from its Chinese expansion before COVID-19 so looks a difficult proposition. The political pressure on China continues to increase with the US State Department indicating they see the Hong Kong law changes as inappropriate. Finally, chip-maker Micron (NASDAQ: MU), increased sales forecasts by another 10% to $5.2 billion sending the entire sector, including NVIDIA (NASDAQ: NVDA), higher.

The daily report is written by Drew Meredith, Financial Adviser and Director of Wattle Partners.

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The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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