AU Morning Wrap: ASX Dips as BHP, Rio, and Wesfarmers Retreat Amid Persistent Volatility
G'day, mooers! Check out the latest news on today's stock market!
• Volatility Falls and Tech Climbs Tuesday
• ASX slips as BHP, Rio fall
• Stocks to watch: LTM, WDS,GQG, WGX, PSQ
Wall Street Summary
The VIX fell 28%, or 10 points today, as the market simmered down from fear and fright mode. The $S&P 500 Index (.SPX.US)$ climbed back 1.04% , the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.76%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 1.03%, after falling 4% Monday.
The turbulence began last week after multiple earnings reports from the largest companies did not meet estimates. Japan's head Bank considered raising rates Friday, sending the $Nikkei 225(.N225.JP)$ down 12%, the worst since the 1980s. The Nikkei climbed back 10% Tuesday morning.
Monday, this week's macro data came in the form of S&P PMI at 54.3 vs 55 estimated, and ISM PMI at 51.4.
Meanwhile, last week's macro numbers pointed to a rush of unemployment. The numbers showed non-farm payrolls dropped from the month before, the economy only added 114k jobs vs 175k forecast and 179k in June, according to the Bureau of Labor Statistics. The unemployment rate in July rose to 4.3%, compared to 4.1% last month.
AU Market Watch
Australian shares slipped 0.3% in early trade on Wednesday as investors reassessed the interest rate outlook after the Reserve Bank of Australia (RBA) indicated no easing this year. The $S&P/ASX 200 (.XJO.AU)$ fell by 21 points to 7659, following a 0.4% rebound in the previous session. The RBA kept the cash rate at a 12-year high of 4.35%, citing high inflation and considering a rate hike while monitoring market volatility.
Seven of the 11 sectors on the benchmark showed gains, led by utilities, while materials lagged due to lower iron ore prices. Major mining companies like $Rio Tinto Ltd (RIO.AU)$, $BHP Group Ltd (BHP.AU)$, and $Fortescue Ltd (FMG.AU)$ saw declines. Retailers and the property sector also faced pressure, with notable drops in companies like $Wesfarmers Ltd (WES.AU)$, $Baby Bunting Group Ltd (BBN.AU)$, $Temple & Webster Group Ltd (TPW.AU)$, $Goodman Group (GMG.AU)$, and $GPT Group (GPT.AU)$. The major banks were also down, including $CommBank (CBA.AU)$.
$Woodside Energy Group Ltd (WDS.AU)$ shares rebounded 1% after a recent significant drop, while $Fisher & Paykel Healthcare Corp Ltd (FPH.AU)$ was the top gainer, up 2.8%. In currency and bond markets, the Australian dollar held gains at US65.24¢, and Australian bond yields edged up, with the three-year yield at 3.7%.
Commodity
Oil prices rebounded from multi-month lows as investors focused on supply tightness and financial markets began to recover from their recent slump. In the precious metals market, gold prices declined due to a stronger US dollar, although expectations of a Federal Reserve rate cut in September and rising Middle East tensions limited the losses.
Gold prices eased on Tuesday due to a stronger dollar and higher bond yields. However, anticipation of a U.S. rate cut in September and rising geopolitical tensions in the Middle East helped stabilize bullion after a sharp decline in the previous session. Spot gold fell 0.6% to $2,393.98 per ounce, following a 1.5% drop on Monday amid recession fears. US gold futures decreased by 0.5% to $2,431.60. The dollar index rose by 0.2%, making gold more expensive for overseas buyers, and the benchmark US 10-year yields also increased.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $55,654, down by 3.48% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $2,512, down by 5.39% in the past 24 hours.
Stocks to Watch
$Woodside Energy Group Ltd (WDS.AU)$ faced a significant market setback, losing nearly $2.6 billion in value, as investors questioned the projected returns on a major US acquisition and its 'marginal' green projects.
$GQG Partners Inc (GQG.AU)$ reported $US13.9 billion of inflows for the year to July 31, boosting funds under management to $US156.3 billion. The international equity strategy accounted for $US60.7 billion and $US43.2 billion in emerging markets.
$Westgold Resources Ltd (WGX.AU)$ began trading in Canada following its merger with Karora Resources, resulting in a 3.8% drop in its ASX shares.
$Pacific Smiles Group Ltd (PSQ.AU)$ fell 0.5% as it began trading ex-dividend.
Economic Calendar (AEST)
9:00 am: Australia Industrials Index (Jul)
4:00 pm: Germany Balance of Trade (Jun)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
Australian stock market news that is available at your fingertips
4677Followers
6Following
165KVisitors
Follow