ASX 200 Continues to Move Upwards

• ASX 200 turned things around on Wednesday.
• Global indices rallied.
• CPI in the United States also perhaps offers a glimmer of hope.
• People’s Bank of China intervenes in Chinese markets during Wednesday’s session.

During the Wednesday trading session, the ASX 200 rallied 1.23%, while stock indices around the world continued to breathe a sigh of relief. Furthermore, the Consumer Price Index numbers in the United States came in lower than anticipated, so this has provided a little bit of reassurance to global markets. However, it is worth noting that the People’s Bank of China had its largest intervention in the Chinese markets during the session, which although it could add a bit of liquidity, the reality is that is a sign of desperation.

Fortescue Ltd (FMG)

Fortescue had a strong showing on Wednesday, gaining 1.84% as the materials giant continues to attempt a recovery from what has been a very dire year. Over the last 12 months, FMG finds itself down 29.31%, but it is testing an area of support near the AU$18 level. The next earnings report is due February 20, with an earnings estimate of AU$1.086, and an estimated AU$12.2 billion in revenue. As things stand now, traders who are involved are most certainly looking at this through the prism of a potential “value play.”

QBE Insurance Group Ltd (QBE)

QBE Insurance Group rallied 0.46% to close at AU$19.53 during the trading session on Wednesday. The insurance giant has had a strong 12 months, as it is now getting close to marking a 30% gain. The last month has been kind as well, gaining 3.33%. In other market moving news, a UBS analyst released a report suggesting the QBE could surprise at its next earnings call, on Friday, 21 February. The earnings estimate is AU$0.937, with revenue expected to be AU$14.49 billion during that call. Regardless, this is a market that has been in a strong uptrend for some time and certainly doesn’t look as if it is showing signs of turning around. In fact, technical analysts will certainly be looking at the recent action as a potential “bullish flag.”

Stockland (SGP)

Stockland rallied an impressive 1.25% during Wednesday’s trading session, adding to its strong performance over the past 12 months, with a 9.91% gain. That said, the past month has been somewhat turbulent for SGP, with the last 30 days delivering a result of -2.01%. However, it’s worth noting that the 50-day EMA, and perhaps more importantly the AU$5 level, have acted as a significant barrier to the market. Stockland received a slight boost during the session as Morgan Stanley increased its conviction on Pental Limited, a direct rival.

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