The Australian stock market is significantly lower on Thursday, giving up all the gains in the previous session, with the benchmark S&P/ASX 200 falling below the 7,100 level, following the broadly negative cues overnight from the global markets, with financial stocks extending their losses amid margin growth worries following the back-to-back cash rate hikes.

The benchmark S&P/ASX 200 Index is losing 68.30 points or 0.96 percent to 7,052.80, after hitting a low of 7,052.80 earlier. The broader All Ordinaries Index is down 68.00 points or 0.93 percent to 7,279.00. Australian stocks ended modestly higher on Wednesday.

Among major miners, BHP Group, Fortescue Metals and Rio Tinto are flat, while Mineral Resources is edging down 0.5 percent and OZ Minerals is losing almost 1 percent.

Oil stocks are higher. Santos is gaining more than 1 percent, while Woodside Energy and Beach energy are adding almost 2 percent each. Origin Energy is flat.

In the tech space, Afterpay owner Block is gaining more than 1 percent and Zip is adding almost 3 percent, while WiseTech Global is edging down 0.3 percent, Appen is declining almost 5 percent and Xero is losing almost 1 percent.

Among the big four banks, National Australia Bank is losing 2.5 percent, , ANZ Banking is slipping almost 3 percent and Westpac is declining more than 4 percent. Commonwealth Bank is down 3.5 percent after it slashed its growth outlook.

Among gold miners, Northern Star Resources and Newcrest Mining are edging down 0.3 percent each, while Evolution Mining is up almost 1 percent and Gold Road Resources is adding more than 1 percent. Resolute Mining is flat.

In the currency market, the Aussie dollar is trading at $0.718 on Thursday.

On Wall Street, stocks drifted lower on Wednesday amid worries about soaring inflation, global economic slowdown and prospects of tighter policy measures by the central bank. Lowering of global growth forecasts by the World Bank and the Organization for Economic Cooperation and Development weighed as well. Higher treasury yields too caused the market’s decline.

The major averages all ended notably lower. The Dow ended with a loss of 269.24 points or 0.81 percent at 32,910.90, The S&P 500 closed lower by 44.91 points or 1.08 percent at 4,115.77 and the Nasdaq ended the session with a loss of 88.96 points or 0.73 percent at 12,086.27.

The major European markets also all moved to the downside on the day. While the German DAX Index slid 0.76 percent, France’s CAC 40 shed 0.8 percent, and the U.K.’s FTSE 100 edged down 0.08 percent.

Crude oil prices climbed higher on Wednesday, buoyed by a sharp drop in gasoline inventories in the U.S. last week, and on optimism for increased demand from China. West Texas Intermediate Crude oil futures for July ended higher by $2.70 or 2.3 percent at $122.11 a barrel, hitting a three-week high.

Market Analysis




Financial Stocks Drag Australian Market Significantly Lower

2022-06-09 01:27:25

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