A big week for the ASX200 is underway

The volatility occasion of January extended last week, on mixed earnings reports and as the European Central Bank and the Bank of England completed a triad of G3 central banks to make a hawkish shift.
Locally the Australian stock request, the ASX200, closed1.89 advanced last week at 7120, serving from a positive lead from Wall Street and after the RBA maintained its pacifist forward guidance. All sectors closed in positive home with the Energy and Utilities sector leading earnings, both up over 4.

This week the Australian 1H2022 earnings season picks up a gear with reports due from companies including the Commonwealth Bank of Australia (CBA), Computershare (CPU), AGL Energy (AGL), and ASX Limited (ASX).

As noted in our exercise of earnings season then, the Delta and Omicron outbreaks bring earnings threat for companies with a domestic focus and may see the volatility occasion of January extend further into February.

Data-wise, the main highlights will be Business and Consumer sentiment checks. In December, the NAB Business Confidence indicator fell to-12, its smallest position since July 2020, reflecting the appearance of Omicron.
A modest brio is anticipated when Business Confidence data is released hereafter, although the uninterrupted impact of Omicron should see the number remain at depressed situations. Omicron and the talk of advanced interest rates will test the adaptability of consumers when Westpac Consumer Confidence data is released on Wednesday.

ASX200 Diurnal Chart

While the ASX200 remains below resistance at 7200, the recovery from the 6758 low is viewed as a correction (Wave iv), and there remains the possibility of another leg lower, including a pretest of the 6758 low (Wave v).

Apprehensive that a daily close above 7200 would neutralize downside pitfalls and indicate a more robust recovery is underway towards the 7632 high.

Source Tradingview. The numbers stated areas of February 7th, 2022. Once performance isn’t a dependable index of unborn performance. This report doesn’t contain and isn’t to be taken as containing any fiscal product advice or fiscal product recommendation

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