The S&P/ASX 200 Index (ASX: XJO) is in the red again on Thursday, but the session is looking much better than earlier this morning.
At the time of writing, the ASX 200 is down 0.11% to 8,713 points.
The fall looks fairly modest now, but the session was much uglier earlier. The benchmark index fell to 8,656.2 points at market open, putting it around a fresh 3-week low.
Since then, buyers have returned and helped the market recover a decent chunk of those losses.
Still, the wider market remains soft. In early afternoon trade, 118 stocks were falling, 76 were rising, and 6 were flat.
Image source: Getty Images
Why the ASX 200 opened lower
The ASX 200 didn't have much help from overseas markets this morning.
US shares finished mostly lower overnight after an early move in tech stocks ran out of steam. The S&P 500 Index (SP: .INX) fell 0.22%, while the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 0.66%.
That softer lead flowed into Asia too, with South Korea's Kospi briefly falling as much as 7% in early trade.
Back home, the selling was spread across most of the market.
Earlier in the session, 9 of the 11 ASX sectors were in the red, with consumer discretionary, utilities, energy, and materials all dragging the index lower.
The S&P/ASX 200 Energy Index (ASX: XEJ) is also down 1.11% after 4 straight days of gains, adding another headwind for the ASX 200 on Thursday.
Banks are keeping the ASX 200 afloat
The banks are the main reason the ASX 200 is not deeper in the red today.
National Australia Bank Ltd (ASX: NAB) shares are up 3.14% to $38.15 after Bank of America reportedly upgraded the bank to buy and lifted its price target to $42.50.
That has given the wider banking sector a lift.
Westpac Banking Corp (ASX: WBC) shares are up 1.73% to $35.30, ANZ Group Holdings Ltd (ASX: ANZ) shares are up 0.55% to $34.66, and Commonwealth Bank of Australia (ASX: CBA) shares are up 0.21% to $161.07.
What else is moving?
Healthcare names are helping offset some of the weakness elsewhere.
ResMed Inc (ASX: RMD) shares are up 3.24% to $29.33, while Pro Medicus Ltd (ASX: PME) shares are 1.93% higher at $206.79.
However, there are still some heavyweights weighing on the market.
Wesfarmers Ltd (ASX: WES) shares are down 3.77% to $87.09, while Origin Energy Ltd (ASX: ORG) shares are 4.33% lower at $10.60.
Can the ASX 200 recover?
The next couple of hours will say a lot.
The move off the morning low is a good sign, but the market still doesn't look all that strong, with most sectors still in the red.
From here, the ASX 200 needs the banks to hold their gains and a few of the larger stocks to settle.
If that happens, the index may be able to finish the session closer to being flat.
