The Match Out: Risk off into the long weekend, US Employment data awaits

The local market tracked lower as the day rolled on as investors took some risk off the table ahead of the long weekend. Most sectors were lower, but tech felt the brunt of the pain, Resources sectors were also soft and while Financials were down, they outperformed the weaker market. Healthcare and Utilities were the main standouts. 

The market gave up 45pts from its highs to briefly tip below 7200 again, before recovering around half of the fall in the last 2 hours of trade. As the Aussie market enters a 4-day weekend, US Employment data will be released tomorrow night and their equity market is open on Monday.

• The ASX 200 finished down -18pts/ -0.25% at 7219
• The Healthcare sector was the standout today, rising 1.68%, while Utilities (+1.23%) and Staples (+0.47%) were the only other gainers
• Tech (-2.14%) was the weakest sector by some margin, followed by Real Estate (-1.34%) and Consumer Discretionary (-1.19%) as the other sectors to fall more than 1%.
• US Unemployment is expected to be flat at 3.6% when it’s released over the weekend, while Non Farm Payrolls are expected to drop around 20% on the prior 311k print. Any better-than-expected data will add to the Fed’s case for further hiking and will likely weigh on markets.
• Elanor (ASX: ENN) +14.86% ripped after paying $42m for Challenger’s CRE. The two signed a distribution agreement that will see Challenger exclusively distribute Elanor’s funds, while the deal more than doubles Elanor’s FUM. Challenger received an 18% stake in ENN as a result, saying they are long-term supporters of the company.
• Talga (ASX: TLG) +5.25% received environmental permits for its Swedish Graphite mine. They are still waiting on approvals for their processing facility to follow.
• Iron Ore fell around 1% in Asian trade, feeding in to weaker resource stocks today.
• Gold eased off recent highs, giving up $US4oz/-0.22% today to US$2016.
• Asian stocks were also softer. The Nikkei was down -1.25%, but Hong Kong fared better with the Hang Seng down -0.43%
• US Futures are pointing to a soft start to Thursday’s session there, S&P500 -0.18% and the Nasdaq futures are -0.35%. US markets will be closed Friday as well.

ASX 200

Market Matters Video Update – March Performance

With the 3^rd month of the year wrapping up at the end of last week, Senior Portfolio Manager James Gerrish & Portfolio Manager Harry Watt discussed the performance within the Market Matters Portfolios as well as asset allocation tweaks to come given the outlook of peak rates and changing dynamics in commodities – Click here to watch.

Stocks and Sectors This Week (Bloomberg)

Broker Moves

• ASX Raised to Overweight at Jarden Securities; PT A$73.25
• New Hope Cut to Neutral at Credit Suisse; PT A$5.20
• Gold Road Cut to Hold at Canaccord; PT A$1.95
• Sayona Mining Rated New Buy at Desjardins
• BHP Raised to Accumulate at CLSA; PT A$46.50
• Gold Road Cut to Neutral at Macquarie; PT A$1.80
• Australian Unity Raised to Buy at Moelis & Company; PT A$1.62

Major Movers Today

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