S&P 500, Nasdaq rallies run out of steam
Yields were lower after Federal Reserve governor Christopher Waller called a July rate cut for the second time in as many days and also said he'd be willing to become chairman of the central bank if asked.
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West Australian
an hour ago
- West Australian
Big four banks drag the ASX to worst day since April
Australia's sharemarket had its sharpest one-day fall since the fallout from Donald Trump's 'Liberation Day' fallout smashed markets in early April, as investors sold down their big four bank shares ahead of company results. The benchmark ASX 200 slumped 89 points or 1.02 per cent to 8,668.20. The massive falls came just a single trading day after the benchmark had its best gains since the mid April recovery. Even with the large falls during Monday's trading, the ASX 200 still had its second highest ever close. The broader All Ordinaries also fell 80.60 points or 0.89 per cent to 8,926.20. The local dollar eked out a small gain and was buying 65.13 US cents at the time of writing. Banks, consumer discretionary and property stocks led the declines with the market heavy financials slumping 2.51 per cent. Westpac was the hardest hit of the big four banks down 3.61 per cent to $33.07, while CBA slumped 2.52 per cent to $177.87, ANZ sank 2.50 per cent to $30.05 and NAB slid 2.40 per cent to $38.25. Consumer discretionary stocks also slumped during Monday's trading. Wesfarmers fell 0.97 per cent to $83.75, JB Hi Fi dropped 1.48 per cent to $105.91 and Eagers Automotive slumped 3.58 per cent to $18.88. IG market analyst Tony Sycamore said Monday's sharp fall is the largest since the Liberation Day sell-off in early April and is almost twice the size ASX futures predicted when they closed 49 points lower on Saturday morning. 'In the absence of any fresh news, today's pullback is possibly related to profit taking ahead of the August earnings season which will likely highlight stretched valuations with certain sectors, particularly the banks,' he said. Meanwhile the major iron ore miners were one of the bright spots on the market, after the price of the underlying commodity continued its march higher. Iron ore futures rose 1.2 per cent to $US99.50 a tonne. Shares in BHP rose 0.42 per cent to $40.46, Rio Tinto gained 1.19 per cent to $114.46 while Fortescue climbed 1.47 per cent to $17.25. In company news, AMP shares jumped 9.77 per cent to $1.68 after announcing its latest results. According to its latest statement AMP's superannuation division posted its first net inflow since 2017, along with growth in its platform and rising assets under management. Shares in Afterpay's parent company Block soared 11.18 per cent to $122 after cracking the US S & P 500. Block will replace Hess Corp after it was acquired by Chevron. Australian home builder AV Jennings is up 1.50 per cent to $0.68 after it announced a fully franked special dividend of 16.7 cents per share on the condition it can be acquired by American real estate firm Proprium Capital Partners. Shares in Cromwell Property Group jumped 8.22 per cent to $0.40, after announcing Brookfield has signed a binding sales and purchase agreement which is subject to the Foreign Investment Review Board approval. Investsmart Group shares also soared 9.09 per cent to $0.12 per cent after the business announced a jump in total funds under management and strong performance fees revenue.
Perth Now
5 hours ago
- Perth Now
Australian shares retreat from record levels
The local bourse has been unable to push further into record territory, with most sectors losing ground at the start of a busy week for markets. Near noon on Monday, the benchmark S&P/ASX200 index had given up three-quarters of Friday's gains, dropping 86.1 points, or 0.98 per cent, to 8,671.1, while the broader All Ordinaries was down 82.4 points, or 0.94 per cent, to 8,921.8. Investors' attention would be fully captured by stocks this week as US company reporting season hit full stride and a number of important Australian companies addressed shareholders, Moomoo market strategist Michael McCarthy said. It might be a hectic week for markets, he added, with a number of US Federal Reserve board members speaking publicly, the release of New Zealand inflation data as well as a gauge of Australian and US business activity known as the purchasing manager index. At midday, nine of the ASX's 11 sectors were in the red, with energy and materials up marginally. The financial sector was the biggest loser, dropping 1.8 per cent. ANZ had fallen 2.3 per cent, Westpac was down 3.1 per cent, CBA had retreated 2.0 per cent and NAB had fallen 2.2 per cent. But AMP was up 8.8 per cent to a five-month high of $1.67 after the financial services company said it had recorded its first quarter of positive cashflows into its superannuation business since the second quarter of 2017, when it was scrutinised by the financial services royal commission. "This reflects our continued efforts to build a compelling member proposition which is delivering outstanding investment returns, service and education," said CEO Alexis George. In the heavyweight mining sector, Rio Tinto was up 1.5 per cent, Fortescue had added 1.2 per cent and BHP had edged 0.1 per cent higher. South32 was up 3.6 per cent following its quarterly operating report. The Australian dollar was buying 65.04 US cents, from 65.02 US cents at 5pm on Friday.
Perth Now
7 hours ago
- Perth Now
Asia shares, yen weather Japan uncertainty
Asian shares and the yen have held their ground as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures are braced for earnings from the first of the tech giants. Investors are also hoping for some progress in trade talks ahead of US President Donald Trump's August 1 tariff deadline, with Commerce Secretary Howard Lutnick still confident a deal can be reached with the European Union. There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline looms. Ishiba expressed his intention to stay in the position which, along with a market holiday, limited the reaction, and the yen was 0.4 per cent firmer at 148.29 to the dollar. "Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields," said Rodrigo Catril, a senior FX strategist at NAB. "History also suggests that domestic political uncertainty tends to keep the BOJ (Bank of Japan) on the sidelines, so the prospect of rate hikes is now set to be delayed for a little bit longer." The Bank of Japan still has a bias to raise rates further but markets are pricing little chance of a move until the end of October. While the Nikkei was shut, futures traded up at 39,875 and just above the cash close of 39,819. MSCI's broadest index of Asia-Pacific shares outside Japan was flat on Monday, while South Korean stocks added 0.4 per cent. S&P 500 futures and Nasdaq futures both edged up 0.1 per cent, and are already at record highs in anticipation of more solid earnings reports. A host of companies reporting this week include Alphabet and Tesla, along with IBM. Investors also expect upbeat news for defence groups RTX, Lockheed Martin and General Dynamics. Ramped-up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30 per cent this year. In bond markets, US Treasury futures held steady having dipped late last week after Federal Reserve governor Christopher Waller repeated his call for a rate cut in July. Most of his colleagues, including chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs, and markets imply almost no chance of a move in July. A September cut is put at 61 per cent, rising to 80 per cent for October. Powell's reticence on rates has drawn the ire of Trump, who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge. The European Central Bank meets this week and is expected to hold its rates steady at 2.0 per cent following a string of cuts. "The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release." The euro was unchanged at $1.1630 in early trading, having dipped 0.5 per cent last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at 98.40. In commodity markets, gold was little changed at $3,348 an ounce with all the recent action in platinum, which last week hit its highest since August 2014. Oil prices were caught between the prospect of increased supply from OPEC+ and the risk that European Union sanctions against Russia for its war in Ukraine could curb its exports. Brent edged up 0.1 per cent to $69.36 a barrel, while US crude added 0.1 per cent to $67.39 per barrel.
