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Greetings and welcome to HotCopper’s the ASX Today for Tuesday, Week 15, I’m Jonathon Davidson, back after the Easter long weekend break and following a green close over on Wall Street last week, the ASX has reacted with a strong show of bullishness, climbing as high as 2.6% in the first hour of trade.
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Why exactly still remains somewhat unclear, given the S&P500 closed up just over four-tenths last week, and there’s been no real change to the geopolitical macro, but perhaps the big takeaway is, after six weeks, the market’s gotten bored with the Iran war. Now it’s ready to see some good news – even if it has to make that itself.
It isn’t entirely irrational if you consider that markets have been going crazy while Russia continues to battle with Ukraine. While we’re clearly not going to see a thirty-day recovery as we saw after April 2 last year, it’s more probable than not a welcome development for all bullish market participants involved.
Still, ABS household spending – for February, mind you – shows households were already pulling back spending before the Iran War, and you can safely predict that data series will get worse in months ahead. Another datapoint the market shrugged off on Tuesday; at the time of writing, the XJO is up 1.4% at 8,700 points.
Bar America dropping the big Kahuna on Iran, it looks like what might matter most in the next 24 hours is what Wall Street does tonight. Does this mean we’ve seen a normalisation of the Iran War? That remains too hard to call, but it does feel that way.
Looking around the traps on Tuesday, DroneShield (ASX:DRO) jumped to $4 a share even as the world’s largest bank JP Morgan sold off its stake in the company making it no longer a substantial holder; Guzman Y Gomez (ASX:GYG) jumped over 18% for some reason after the company issued an unsolicited everything-is-fine trading update (revealing it’s only opened two new stores in the U.S.), and finally, Aussie bourse leader Commonwealth Bank (ASX:CBA) has been up just shy of 2% at the time of writing with the Big 4 bank’s overall market cap pretty close to being at $295B again.
That’s the ASX Today for Tuesday, I’m Jon Davidson, have a great night, pray for peace, and we’ll see you tomorrow.
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