Aussie Share Market to Test Record Highs on China Stimulus and US Big Tech Boost

Jessica Amir wrote a column · Jul 29, 2024 16:31

In Australia, the Aussie share market could re-test its record all-time highs this week, should we get good news from the US and should local CPI behave. Plus, we could see some traders bet that the industrial metal commodity pullback (aluminium, copper, iron ore) is over after China pledged 300 billion yuan to upgrade its manufacturing sector equipment. Read on...

It will be important to see if Australian inflation out Wednesday falls in line with expectations (with CPI to fall to 3.8% from 4%), as that could stoke further gains in the Aussie share market and possibly remove those small bets that the Reserve Bank of Australia could raise interest rates in September. Either way, the market thinks the RBA will keep rates as they are when meeting next week.

Watch the highly traded Australian share market ETF VAS $Vanguard Australian Shares ETF (VAS.AU)$

Aussie Share Market to Test Record Highs on China Stimulus and US Big Tech Boost

The ASX200 is set to close off July on a high, with a gain of 2.8% fuelled by tech stocks, such as Iress and Zip, up over 20% this month.

As history would have it, July is historically the best month of the year. Well, it has been over the last 20 years, and a top month over the last 30 years.

But now we're re entering what's a treading water month: August. The market has only historically gained 0.1% on average over the last 20 years or slipped 0.1% over the last 20 years.

August is an important month for the ASX. It's 'reporting season, Christmas for analysts. It's when the biggest companies on the ASX share financial results and guide what they're seeing for the next 12 months. Credit Corp $Credit Corp Group Ltd (CCP.AU)$ and Champion Iron $Champion Iron Ltd (CIA.AU)$ report July 30, followed by Rio Tinto $Rio Tinto Ltd (RIO.AU)$ on July 31 and US payment giant Square $Block (SQ.US)$ $Block Inc (SQ2.AU)$ on August 2. Square (also known as Block) will be very closely watched, given Trump said to ‘never sell your bitcoin' and Square make 40% of their money from BTC transactions.

The question is, will the ‘big money’ flow into equities as it historically does in October and November, just in time for the Santa rally?

ASX ON MONDAY

MONTH TO DATE

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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151453268 witso : Hope to see some positive incremental movement in gold going against the grain due to positive mining reports removal of debt and drill results enhancing deposits. Speculative stocks still building into profit mainly because of my amateur eagerness to buy in but overall waiting with discipline and patience on the outcome of your key factors

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Jessica Amir

Moomoo Official Market Strategist

moomoo, market strategist. Seen/heard on Fox News Business, ABC, SBS, Reuters wires. Investor/Trader. Connect with me.

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