AU Morning Wrap: ASX Falls in All Sectors; Star Plunges

Moomoo News AU wrote a column · Apr 16, 2024 08:46

G'day, mooers! Check out the latest news on today's stock market!
• Dow Closed 250 points lower
• ASX falls in all sectors; Star plunges
• Stocks to watch: Macquarie Technology, Imugene, Hub24

AU Morning Wrap: ASX Falls in All Sectors; Star Plunges

Wall Street Summary

Indexes opened green after an Iranian strike on Israel failed to cause widespread damage Saturday night, but stocks sold off big time in the afternoon on news that Israel would respond soon. Investors pulled back after 1 PM EST, and Treasury yields jumped by nearly 5% while the market sank.

With preliminary closing numbers, the $S&P 500 Index (.SPX.US)$ fell 1.20%, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.65%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 1.79%.

The U.S. bond market's sharp selloff on Monday might be a surprise, given that Middle East tensions as recent as Friday were credited with sparking a flight to safe-haven assets.

$U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ climbed to 4.92%, while the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ grew 1.85% to 4.6%.

AU Market Watch

Australian shares followed the lead of Wall Street, declining after better-than-expected US retail sales figures diminished expectations of interest rate reductions. The benchmark $S&P/ASX 200 (.XJO.AU)$ Index dropped 0.9%, with all 11 sectors seeing losses, including energy among the hardest hit. On Monday, the share market decreased by 0.5%, marking the third straight session of declines. Amid ongoing inquiry, $The Star Entertainment Group Ltd (SGR.AU)$ fell 9.3 cents - the largest decline.

ASX futures dropped 25.5 points, indicating a 0.33% decrease to 7700.

The Australian dollar is trading at US64.34¢, a slight decrease from Monday and a five-month low.

Commodity

Oil Markets Remain Stable Despite Iran's Attack on Israel

Despite Iran's recent attack on Israel with missiles and drones, oil markets remained unaffected with no significant increase in tensions in the Middle East. The price for Brent crude oil, which is the global standard, fell by approximately 1% to $US89.49 per barrel on Monday morning. Fortunately, the attack caused minimal damage and did not impact supplies, resulting in a sense of relief among market players. Before the attack, oil prices had already surged, surpassing the symbolic $US90 per barrel level last week.

Stocks to Watch

$Macquarie Technology Group Ltd (MAQ.AU)$, a provider of data centre services, plans to raise $100 million through an underwritten share placement, with a 6.1% discount to the closing share price.

$Imugene Ltd (IMU.AU)$, a biopharmaceuticals developer, has sold its manufacturing facility in North Carolina to Kincell Bio.

$HUB24 Ltd (HUB.AU)$, an investment platform, is set to achieve its funds under administration (FUA) target of $92 billion to $100 billion in fiscal 2025 after a strong March quarter.

Economic Calendar (AEST):

1:00 pm: China GDP Growth (Q1)

1:00 pm: China Industrial Production (Mar)

1:00 pm: China Retail Sales (Mar)

5:00 pm: UK Unemployment Rate (Feb)

8:00 pm: Germany ZEW Economic Sentiment Index

11:30 pm: Canada Inflation (Mar)

11:30 pm: US Building Permits (Mar)

Source: Dow Jones Newswires, AFR

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