ASX 200 Recovers Following Initial Monday Sell-Off

• Australia recovered after the initial “risk-off” selling
• Global indices demonstrated cautiously positive sentiment

During Monday’s trading session, the ASX 200 initially declined. This was in line with the broader shift towards a “risk-off” mood across global markets. The decline followed news that American forces had bombed Iranian nuclear sites, raising concerns among traders about the potential for further escalation. Many investors responded by exiting positions.

However, after falling toward the AU$8,400 level, the ASX 200 attracted renewed buying interest and began recovering back toward the AU$8,500 level. For now, global indices appear to have a bias to move higher. The US market followed a similar pattern—an initial sell-off, followed by a swift rebound.

Macquarie Group Limited (MQG)

Macquarie Group Limited rose 0.26% during the session after an early decline. Over the past year, MQG has gained 5.23%, including a 1.89% rise in the last month.

The company is nearing an AU$80 billion market cap, with its share price approaching AU$210. Technical traders may find the current setup appealing, as a hammer pattern has formed while the price sits at the 50-day EMA and moves towards the 200-day EMA. The next key resistance is around AU$220, which bullish traders may be targeting.

Sigma Healthcare Limited (SIG)

Sigma Healthcare Limited slipped 0.32% during Monday’s session. However, this minor pullback comes after an impressive 139.85% gain over the past 12 months.

The stock had dipped further earlier in the day but recovered as a more “risk-on” mood returned to the market. It is currently hovering near the 50-day EMA and remains one of the ASX 200’s top performers over the past year. Momentum continues to favour the upside, with the price holding well above the AU$3 level.

Commonwealth Bank of Australia (CBA)

Commonwealth Bank of Australia rose 1% during the session, extending its 44.38% gain over the past 12 months. In the past month alone, CBA has climbed 6.73%, with the stock now approaching the AU$185 level.

CBA recently announced discounted home equity loans for energy upgrades, a move some analysts believe could attract additional business. The stock remains in a strong uptrend, with buyers quick to step in on any signs of value.

With no earnings call scheduled until 13 August, the market may lack certain near-term catalysts. The 50-day EMA sits much lower at AU$172, while Monday’s close came in at AU$184.35.

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