AU Morning Wrap: ASX 200 Tumbles as Wall Street Pullback Accelerates; Westpac Eases, Lifestyle Communities Plunges
G'day, mooers! Check out the latest news on today's stock market!
• The overall US market pulled back for the second day in a row Thursday after a semiconductor sell-off Wednesday.
• Australian shares lost 1.1 per cent to fall back below 8000 points in early trade dragged lower by the banks, miners, and technology businesses.
• Stocks to watch: WBC, LIC, NEM, EVN
Wall Street Summary
The overall market pulled back for the second day in a row Thursday after a semiconductor sell-off Wednesday. The $S&P 500 Index(.SPX.US$ and $NASDAQ 100 Index(.NDX.US$ were negative for the week, while the $Dow Jones Industrial Average(.DJI.US$ remained green for the week despite facing the strongest pullback.The Dow led the way lower, falling 1.19% by the 4 pm ET closing numbers. The $Nasdaq Composite Index(.IXIC.US$ fell 0.82%, while the S&P 500 eased 0.86%.
Thursday, initial jobless claim numbers came in higher for the week, at 240k vs 220k expected. Federal Reserve Gov. Christopher Waller said Wednesday that the central bank is "getting closer to the time when a cut," in interest rates is warranted. However, he still wants more evidence that inflation is slowing before he's ready to move.
I believe current data are consistent with achieving a soft landing, and I will be looking for data over the next couple of months to buttress this view," Wall said in a speech in Kansas City. " So, while I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted."
Federal Reserve Governor Adriana D. Kugler said Tuesday she anticipates "it will be appropriate to begin easing monetary policy later this year" if economic conditions continue to evolve in a favorable manner with more rapid disinflation and employment softens while remaining resilient. She addressed the National Association for Business Economics Foundation in Washington.
If the labor market cools too much and unemployment continues to increase and is driven by layoffs, I would see it as appropriate to cut rates sooner rather than later," Kugler said.
AU Market Watch
Australian shares fell 1.1%, dropping below 8000 points, led by declines in banks, miners, and tech businesses.
On Wall Street, the Dow and Nasdaq both fell, while $Netflix(NFLX.US$ shares remained flat despite strong quarterly profits and subscriber growth.
China's economic data continues to weaken. GDP growth was only 4.7 per cent in the second quarter, while home sales and property investment were also weaker," said ANZ Bank. "This comes as the steel industry enters its quieter summer period, where demand tends to weaken."
Commodity
Iron ore, gold, and copper prices all dropped overnight. Among the big losers on the local market were $Newmont Corp(NEM.AU$ and $Evolution Mining Ltd(EVN.AU$, both down more than 3 per cent. The broader materials sector lost 2 per cent.
Crypto
As of latest data, $Bitcoin(BTC.CC$ is priced at $63,718, down by 0.75% in the past 24 hours, while $Ethereum(ETH.CC$ is priced at $3,415, up by 0.44% in the past 24 hours.
Stocks to Watch
$Westpac Banking Corp(WBC.AU$'s capital adequacy requirements were reduced by $500 million, as announced by banking regulator APRA.
$Lifestyle Communities Ltd(LIC.AU$ withdrew all forward guidance due to media influence and uncertainty in its home building business, causing shares to plunge 16% to $9.24.
Economic Calendar (AEST)
9:30 am: Japan Inflation Rate (Jun)
4:00 pm: UK Retail Sales (Jun)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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