The Australian stock market continues to trade in a downtrend after releasing poor financial data on major components and growth in the bond market. At the moment, the ASX 200 index is declining around 7038.0.
Corporate reporting remains ambiguous. Thus, the investment bank Macquarie Group Ltd. reported quarterly revenue of 10.80B AUD, well above the forecast of 7.90B, while advertising giant REA Group Ltd. reported revenue of just 278M AUD, below the forecast of 284.8M AUD, and the indicator of the previous quarter of 326.4M. Thus, given that most market participants have already presented their results, support for the index from this segment is not expected, and the main attention of investors will now be turned to the dynamics of bonds.
The global growth in the securities market, preventing the recovery of ASX 200 quotes, continues. So, during today's trading, the yield of popular 10-year bonds of Australia reaches 3.545%, and the rate of return on conservative 20-year bonds is 3.884%, increasing by 1.24% relative to the beginning of the week. Short-term instruments demonstrate more restrained growth, and annual papers are traded with a yield of 2.071%.
The price of the asset moves within the global side channel, approaching the support line. Technical indicators keep a stable sell signal: fast EMAs of the alligator indicator are below the signal line, and the AO oscillator histogram is deep in the sell zone, continuing to form downward bars.
Support levels: 6900, 6500 | Resistance levels: 7175, 7620