ASX marches towards key psychological level

The local sharemarket pushed to fresh record highs on Wednesday, brushing aside a soft lead from Wall Street sparked by renewed concerns towards progress in trade negotiations between the US and China in the months ahead.

The benchmark S&P/ASX 200 climbed 32.6 points, or 0.5 per cent, to close at 6994.8, extending its rally so far in 2020 to 4.7 per cent. At one point during the session, the index moved to within a whisker of surpassing the 7000-point level before retreating in late trade.

Another day, another record high for Australia’s equity market. Credit:AAP

“As the index approaches this level, it will likely see some investors review their portfolios, causing them to become more active when it comes to investing,” said Anthony Doyle, global cross-asset investment specialist at Fidelity International. “In reality, there isn’t much difference between the S&P/ASX 200 at 6995 and 7005, but 7000 could represent an emotional trigger point to some investors.”

Despite the reluctance to push the index through this level, it was still a resilient performance from the local market with investors unperturbed by reports that US tariffs on Chinese imports are unlikely to be rolled back before the US presidential election, something that weighed on sentiment on Wall Street and regional Asian markets on Wednesday.


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