Australia 200 stocks
Banking sector

Mining sector

Evidence suggests capital is flowing from banks to the mining sector. 

Iron ore

Today’s gains for the miners were also supported by the price of iron ore on the Singapore Futures exchange, rising 0.5% to $104.05.

Crude oil 

The European Union (EU) is reportedly exploring additional trade countermeasures against the US if an acceptable trade agreement cannot be reached by the 1 August deadline. Rising concerns over a trade war between the US and the EU weighed on the crude oil price, which fell 0.64% to $65.36. 

Gold

Simultaneously, EU-US trade war concerns boosted gold stocks.

Australia 200 technical analysis

After last Wednesday’s sell-off in the Australia 200 held above our 8530 – 8510 support zone, the index regrouped and surged to fresh record highs into the end of last week.

Providing the Australia 200 holds above short-term support at 8620 – 8600ish, coming from previous record highs, we expect the index to extend its gains towards 8850.

Be aware that a daily close below 8600 is an initial warning that last week’s break higher was a false break and that a retest of the late June 8420 low is underway.

Australia 200 daily chart