ASX 200 Bounces Slightly on Wednesday

• ASX 200 attempts to find support on Wednesday.
• New York indices showing signs of stabilisation.
• Tariff tensions continue to escalate between the United States and China.

During the trading session on Wednesday, we saw the ASX 200 attempted to rally, with the 7,500 level coming back into focus. This area has been significant throughout 2024, previously serving as a strong support. Market memory could kick in, turning support into resistance. Whether the index can push higher from here remains to be seen, especially amid heightened global uncertainty.

Australia’s reliance on trade with China complicates matters, particularly as tensions escalate between Beijing and Washington. In a worrying development, Amazon has reportedly begun cancelling orders from China, underscoring the deteriorating trade landscape. For Australia, a healthy flow of global trade, especially with China, is crucial.

With New York indices trying to stabilise, investors are still waiting on a catalyst to justify any sustained buying. Until then, caution is likely to prevail.

ANZ Group Holdings Limited (ANZ)

ANZ Group Holdings dropped a sharp 2.07% during Wednesday’s session, as the escalating tariff war between the US and China continues to weigh heavily on global risk appetite. With exposure across multiple countries in the region, ANZ remains particularly vulnerable to geopolitical and economic shocks.

The stock has now shed just under 10% over the past year, with a notable 7.53% of that decline occurring in the past month alone. ANZ closed the session at AU$26.51, right at the lows of the day, which is never a good sign for short-term sentiment. Traders will be watching closely to see whether the bank can stabilise or if further downside is on the cards.

Aristocrat Leisure Limited (ALL)

Aristocrat Leisure Limited gained 0.82% during the trading session, as the stock continues to show underlying strength. Over the past year, ALL has surged an impressive 42.55%. However, the past month has been choppy, with the stock down 13.89% over that period.

Currently, the market appears to be in the process of filling a gap from several days ago, a common technical phenomenon that often acts as a magnet for price. Traders will be watching closely to see if the gap area, along with the 200-day EMA hovering just above the $62.50 level, acts as resistance.

Whether or not the market respects these technical markers will likely set the tone for the next move.

Northern Star Resources Limited (NST)

Northern Star Resources Limited slipped 1.118% during the trading session, falling in line with the broader risk-off sentiment that gripped the markets. Despite the dip, the materials giant remains one of the standout performers, up 26.66% over the past year and posting a strong 12% gain in just the last month.

In a market struggling to find bullish momentum, Northern Star continues to shine as a relative outperformer. Every dip has been met with eager buyers, and although Wednesday marked a minor pullback, the overall trend remains firmly intact. Notably, trading volume has been on the rise, often a precursor to larger moves, suggesting investor interest is far from fading.

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