AU Morning Wrap: ASX Seesaws in First Session of 2023; Tech Drag Stocks Lower
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• S&P 500 logs worst year since 2008
• ASX seesaws in first session of 2023
• Stocks to watch: Whitehaven, St Barbara, Pilbara Minerals
- Moomoo News AU
Wall Street Summary
US stocks ended their worst year since 2008 with a round of modest losses on Friday. The $S&P 500 Index (.SPX.US)$ eased ten points or 0.25 per cent. The $Dow Jones Industrial Average (.DJI.US)$ shed 74 points or 0.22 per cent. The $Nasdaq Composite Index (.IXIC.US)$ gave up 12 points or 0.11 per cent.
The market mood remained downbeat as investors locked in tax losses at the end of the most challenging year since the Great Financial Crisis. Stocks wilted in 2022 under headwinds including war in Ukraine, an explosion in inflation, surging interest rates and China's struggles with Covid.
The S&P 500 finished with an annual loss of 19.4 per cent. The Dow gave up 8.8 per cent and the Nasdaq 33.1 per cent.
AU Market Watch
Australian shares strengthened in their first trading session of 2023, building on gains in European shares overnight.
The $S&P/ASX 200 (.XJO.AU)$ gained 0.25 per cent at the open to 7056.1 with a range of sectors in the green, led by real estate and consumer discretionary. Utilities traded down 0.4 per cent.
Material stocks led the gainers. Gold miner St Barbara gained 2.6 per cent, Deterra Royalties rose 1.8 per cent and De Grey Mining added 1.6 per cent.
Whitehaven coal fell 2.1 per cent. Lithium stocks Pilbara Minerals and Lake Resources were also lower.
Stocks to Watch
$PhosCo Ltd (PHO.AU)$: ASX-listed phosphate junior PhosCo, which has touted a billion-dollar price tag for its Tunisian project, is understood to have failed to get the licence to actually mine the site in a blow to its investors.
$Perpetual Ltd (PPT.AU)$: Perpetual shareholders will receive a special dividend of 35¢ per share, fully franked, following regulatory approval.
The special dividend is part of the conditions set out in the scheme implementation deed with Pendal Group.
Perpetual said the purpose of the payout was to "bring the dividend periods in line for shareholders of both Pendal and Perpetual in preparation for completion of the transaction" targeted for mid-January.
Commodities
• Iron ore rose 5.0% in the past week to US$116.20 a tonne. Below are a few key highlights from the Shanghai Metal Market's outlook for Chinese steel supply and demand:
PMIs of major economies: "... showed a downward trend since entering 2022. The current global economy is facing multiple challenges."
More stimulus: "... in 2023, general infrastructure investment is expected to progress at a relatively rapid speed … At present, many provinces and cities, including Hunan, Jiangxi and Hebei, have issued local special bond plans for 2023."
Steel demand: "... in 2023, the demand for steel in the construction industry will bottom out, and there is likely to be a year-on-year decline of about 2.8%."
Steel prices: "Steel prices may fall to some extent in 2023 with mounting economic development pressure though demand is likely to bottom out."
• Oil prices rallied but up just 1.7% in the past week amid volatile trade.
WTI crude is seen averaging US$84.84 a barrel in 2023, down from US$87.80 in a previous poll, according to Reuters.
• Gold prices edged higher and up 1.1% in the past week.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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