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Article prepared by Tony Sycamore
ASX 200 overview
Despite a soft session on Friday, the ASX 200 added another 0.6% last week to close at 7302. The Materials (+4.1%) and IT (+2.3%) sectors outperformed, while Energy stocks were the main drag. At an index level, the ASX 200 is now just under 4% from its all-time high, excluding dividends.
The impetus for last week’s gains was dovish comments from Fed Chair Powell. The market expects the Fed to slow the pace of its tightening cycle as early as next week’s FOMC meeting.
There are signs that an earlier-than-expected re-opening for China is on the horizon and a deceleration in the pace of Fed rate hikes should be a positive for ASX 200 listed commodity and energy stocks, three of which we look at in the article below.
The share price of Australian mining and metals giant BHP Group Ltd (BHP) has, like many stocks, been on somewhat of a roller coaster ride in 2022.
The share price of BHP soared after the Russian invasion of Ukraine towards $48.00 before falling 25% to below $36.00 on concerns of a global slowdown and China’s dogged pursuit of Covid Zero.
The stock has since rebounded in line with the recovery in global equities over the past two months to be eyeing the $48.00 resistance level it failed from earlier this year. At the very least, this suggests some caution is warranted in chasing the Big Australians share price higher at this level.
Technical-based traders would likely need to see a sustained break of downtrend resistance and former highs $48.00/50 region to open a move towards $50.00.
BHP daily chart
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