What happened
The ASX 200 rose 0.3% to 8,696 on Wednesday, recovering a portion of Tuesday's sharp sell-off. Energy stocks jumped 2.19% and Materials gained 1.28%, led by gains in Woodside, Santos, BHP, and Fortescue. However, gains were constrained as the financial sector slipped 0.37%, with Commonwealth Bank and NAB dragging, alongside declines in consumer staples and real estate.
Why it matters here
Resource sector strength remains a vital buffer for Australian portfolios during periods of broader market stress. However, persistent weakness in major bank shares highlights lingering investor concern over tightening monetary policy and slowing credit growth, which could restrict broader market upside if commodity momentum falters.
What to watch
US retail sales data, import prices, and crude petroleum inventory updates ahead of the US Federal Reserve's interest rate announcement at 4:00 am AEST Thursday.
Source
samso.com.au