{"id":58477,"date":"2024-10-17T07:30:18","date_gmt":"2024-10-17T07:30:18","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=58477"},"modified":"2024-10-17T07:32:43","modified_gmt":"2024-10-17T07:32:43","slug":"asx-200-jumps-to-new-high","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2024\/10\/17\/asx-200-jumps-to-new-high\/","title":{"rendered":"ASX 200 jumps to new high"},"content":{"rendered":"

A strong September jobs report boosted the ASX 200 to a new high of 8355, confirming our target of 8500 for this year.<\/p>\n

Labor Market<\/h2>\n

The Australian economy added a seasonally adjusted 64,100 jobs in September, according to the latest Labour Report, well above expectations of 25,000.<\/p>\n

\"Australia:<\/p>\n

The unemployment rate remained steady at 4.1%.<\/p>\n

\"Australia:<\/p>\n

The surge in jobs was absorbed by an increase in the participation rate to a robust 67.2%.<\/p>\n

\"Australia:<\/p>\n

Aggregate hours worked also improved to 1,968 million in September, a 0.3% increase compared to the 0.2% average over the past 12 months.<\/p>\n

\"Australia:<\/p>\n

Business<\/h2>\n

Strong labor conditions failed to inspire business confidence, with NAB business confidence (black below) declining to -6 pts in the third quarter.<\/p>\n

\"NAB<\/p>\n

Wage costs were the number#1 issue affecting business confidence:<\/p>\n

\"Issues<\/p>\n

The Mining industry (red below) recorded a sharp drop in confidence.<\/p>\n

\"NAB<\/p>\n

Stocks<\/h2>\n

The ASX 200 rallied through resistance at 8300, confirming our year-end target of 8500.<\/p>\n

\"ASX<\/p>\n

The ASX 200 rally was led by a strong surge in Financials, which is headed for a test of resistance at 8600.<\/p>\n

\"ASX<\/p>\n

The ASX 300 Metals & Mining Index remains tentative, weighed down by falling demand from China. Breach of support at 5600 would warn of another test of long-term support at 5000.<\/p>\n

\"ASX<\/p>\n

On the other hand, the All Ordinaries Gold Index is testing its July 2020 high at 9500. Breakout would offer a long-term target of 14500. The soaring gold price and falling energy costs have boosted margins, with diesel a substantial cost in extraction and transportation.<\/p>\n

\"All<\/p>\n

Conclusion<\/h2>\n

A strong jobs report boosted the ASX 200, which recorded a new high of 8355, confirming our target of 8500 for the year.<\/p>\n

Strong employment growth suggests that the RBA is unlikely to cut interest rates before next year. Instead, the hawks will be keeping a beady eye on inflation.<\/p>\n

Business confidence remains low, with Mining especially hard hit by sluggish demand from China.<\/p>\n

The Financials sub-index is headed for a test of resistance at 8600. Breakout would offer a medium-term target of 9200. The All Ords Gold Index is also bullish, testing its 2020 high of 9500. Breakout would offer a long-term target of 14500. Metals & Mining, however, remain bearish.<\/p>\n

Acknowledgments<\/h4>\n