The majors
It was a bullish start to the week for the ASX200 on Monday.
The ASX200 partially reversed a 1.44% decline from Friday and rose 0.64%.
As of the weekend, NBS of China’s private sector PMIs failed to tie back the ASX200. It did so despite the fact that the purchasing managers’ index for manufacturing fell from 49.6 to 49.2 in October.
The more influential Caixin Manufacturing PMI provided support at the start of the week.
Ahead of the day’s stats, a bullish end from the previous week set the tone for the DJIA for Monday’s session.
The statistics
The manufacturing industry was the focus in the early hours of the morning.
In October, the AIG Manufacturing Index rose from 51.2 to 50.4.
According to the October poll
- The sector slowed for the fourth straight month, with the PMI falling to its lowest level since September 2020.
- For the activity indices that shrank in October with declines in production, employment, exports and supplier deliveries.
- Forward orders, however, continued to surge, which points to a likely rebound once COVID-19 restrictions are further eased.
From China
In October, Caixin’s manufacturing purchasing managers’ index rose from 50.0 to 50.6.
According to the October poll
- Although modest, the rate of expansion was the strongest in four months.
- Total incoming orders rose the most in 4 months.
- Domestic demand drove new orders, with export orders falling for the third month in a row.
- Production fell for the third month in a row, which led to a further decline in employment.
- Delays in the supply chain increased, and prices for materials, energy and transport rose.
- The input price inflation rate was the steepest since December 2016.
- As a result, the initial charges also increased significantly.
- However, manufacturers were generally optimistic that production would increase over the next 12 months.
The market movers
It was a mixed day for the banks. Westpac coll -sed 7.36% as markets responded to a lack of cash gains. SN – (-0.91%) also saw red while ANZ (+ 0.04%) and CBA (+ 1.54%) found support. Macquarie group ended the day up 0.43%.
Commodity stocks also had a mixed session. Fortescue Metals Group Ltd increased by 2.87%, with Rio Tinto (+ 0.75%) also find support. BHP group (-0.47%) saw red, but with Newcrest Mining decreases by 1.77%.
Other Asian markets
The Hang Seng fell 0.88% while the CSI300 lost 0.37% the day. The uncertainty about China’s economic outlook continued to weigh on the losses in the last week of October.
The day ahead
A quieter day is ahead on the Asian economic calendar. New Zealand building permits numbers are likely to have a subdued impact on the ASX200.
On the monetary front, however, the RBA will present its November monetary policy decision. With the markets expecting the RBA to hold out in cash, the rate declaration will be vital.
Any restrictive chatter would help bank stocks, though much will remain in the hands of supply chains and affect commodity prices.
Aside from the economic calendar, corporate profits will continue to have an impact.
The future
On the futures markets, the ASX200 was up 13 points at the time of writing.
You can find an overview of all today’s economic events in our economic calendar.
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