Listen to the latest market mood for the ASX200.

Australia’s index the ASX200 should remain supported over the near term after Australia’s Government announced an aggressive stimulus package yesterday. There is a large fiscal deficit plan to support the country and, according to analysts, there will be few ‘losers’ in stocks.

This will help the ASX200 catch up with its Asian peers since a rebound started in March of this year. Australian shares will also be helped by a weaker AUD and as bond yields drift lower towards zero after the Reserve Bank of Australia kept open a rate cut ahead after yesterday’s RBA meeting.

Therefore, expect ASX200 buyers on dips.

Trade Risks:

  • If the risk tone turns negative and we see very strong equity selling this will impact the ASX200 pulling it lower.
  • Any breakdown in relationships between China and Australis will drag the ASX down sharply and invalidate this outlook.

HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.