ASX 200 Continues to See Support 

• Australia shows resiliency on Monday. 
• US reports contraction to PMI numbers for manufacturing. 

During the trading session on Monday, we saw the ASX 200 drop a bit, but it turned around to show signs of support later in the day.  Notably, US PMI figures indicated a slight contraction, which could prompt traders to anticipate a potential shift in the Federal Reserve’s monetary policy later this year. If easing does occur, it may increase demand for commodities as cheaper money flows through the US economy—and potentially the global market as well. 

Whether or not that proves to be true, it may matter little, given the market’s extended bullish run. The AU$8,350 level appears to offer strong support, while resistance seems to be forming around AU$8,500. Overall, the market appears to be consolidating following a substantial upward move. 

ANZ Group Holdings Limited (ANZ) 

ANZ Group Holdings declined by 21 basis points during Monday’s trading session, continuing a broader downward drift over the past 30 days, with the stock down 2.56% for the month. However, over the past year, ANZ has gained 2.58%, suggesting the market may be seeking a sense of equilibrium. 

The stock is currently hovering near the 50-day EMA and sits in the middle of a broader consolidation range that has been in place for the past couple of years. Overall, the market appears to be in a neutral phase. That said, with an AU$0.83 dividend, many long-term holders are likely to stay invested. 

QBE Insurance Group Limited (QBE) 

QBE Insurance Group rose by 1.3% during the trading session, extending its momentum from the past month, which saw a gain of 9.37%. Over the past year, the stock has climbed 31.8% as the insurance giant continues to attract steady inflows. 

The uptrend has been strong since early April and while it may appear slightly overextended, buyers consistently step in on minor pullbacks. QBE remains one of the stronger performers in the Australian market. 

Suncorp Group Limited (SUN) 

Suncorp Group Limited rose by 0.05% in a choppy, sideways session on Monday, continuing a gradual 2.28% gain over the past month. Over the longer term, the stock has gained nearly 30% year-on-year, reinforcing its position as one of the stronger performers in the market. 

SUN is currently trading above the 200-day EMA—a level closely watched by many market participants. With the 50-day EMA now approaching, there is potential for a “golden cross,” a technical signal often noted by long-term traders. Supporting the bullish sentiment, UBS has raised its price target to AU$21.64.

Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.