In the first 40 minutes of trading, the All Ordinaries Index lost 2.7 percent to 6,608, while the ASX 200 lost 2.6 percent to 6,421.
By late afternoon, the market was off its lows, with All Ordinaries down 1.9 percent to 6,656, while the ASX 200 was also down 1.9 percent to 6,468 at 3:15 p.m. m.AEST.
All sectors were down led by miners, technology stocks, miners, consumer companies, and banks.
The ASX 200 has lost nearly 7 percent of its value this week. Gold miners Evolution Mining (+5.9%) and Northern Star Resources (+5.6%) were the top performers on the ASX 200 index as investors turned to gold as a safe-haven asset. Water and automotive products GUD Holdings (19.8 percent) and the owner of investment platform Hub 24 (7.2 percent) were the worst-performing stocks in the benchmark index.
Latitude rescinds Humm takeover
Australian digital payments and loans company Latitude Group has withdrawn its $335 million bid to buy Humm Group's consumer division, which includes its BNPL (Buy Now, Pay Later) business. Humm stock lost almost a quarter of its value. He told the Australian Stock Exchange that "the current disruption in financial markets" was behind the withdrawal of the bid. The market value of BNPL companies shrank rapidly as rate hikes to control rising inflation stoked concerns about a slowdown in consumer finance. Humm Group said its consumer division, Humm Consumer Finance, saw its full-year after-tax profit fall by two-thirds at the end of May due to intense competition, rising interest rates, and weakening consumer confidence. Latitude shares fell 3.6 percent to $1.35. The Australian dollar was up 0.6 percent at 70.5 US cents as of 7:20 am AEST. But as of 3:15 pm AEST, the local currency, fell 0.3 percent to 70.21 US cents.
Wall Street plunge
US stocks fell further into the red a day after the rally as the Federal Reserve hiked interest rates by 0.75 percent. All 11 sectors of the SandP 500 index fell, led by energy stocks. The benchmark index suffered its sixth decline in seven trading sessions and continued to slide into a bear market, more than 20 percent below its peak. Rate hikes in the UK, Switzerland, and Hungary renewed fears that central bank attempts to cool raging inflation could stutter the global economy or trigger a recession. Several investment banks have cautioned of the risk of a slump, including Wells Fargo, Deutsche Bank, and Morgan Stanley.
The Dow Jones Industrial Average fell 2.4 percent to 29,927, the SandP 500 lost 3.3 percent to 3,667 and the Nasdaq Composite fell 4.1 percent to 10,646. It was Nasdaq's fifth daily decline of 4 percent or more since May when the index was in a bear market. Big Tech tumbled, led by sharp falls in electric car maker Tesla (8.5 percent) and computer games maker Nvidia (9.3 percent). Will corporate earnings go where analysts estimate, or will they be wiped out?" said Tom Hainline, global investment strategist at US Bank Wealth Management's Ascent Private Wealth Group.
"The Swiss came out today and surprised everyone and said, 'We're less concerned about the strength of our currency and more concerned about inflation.'"
US Treasury yields fell as recession fears dampened investor risk appetite and turned to safe-haven government bonds. since April 2011. Economic data fueled fears of slowing growth as the number of Americans filing new jobless claims fell less than expected last week. And a Commerce Department report showed that US housing starts fell 14.4 percent last month to the lowest level since April 2021.
UK rate rise
The Bank of England hiked official interest rates by 0.25% to 1.25% for the fifth time since December, a day after the European Central Bank pledged support to indebted countries. in the economy, with UK inflation approaching 10 percent this year.
"CPI inflation is expected to be above 9 percent in the coming months, rising slightly above 11 percent in October," the bank said in a statement."
Switzerland's central bank, the Swiss National Bank, hiked interest rates by 50 basis points to minus 0.25 percent for the first time in 15 years. Negative accelerations mean borrowers are paying for the benefit of depositing their money with the central bank. The Hungarian central bank has raised the interest rate on one-week deposits by 0.3 percent to 6 percent.75% as expected overnight as the bank continues to tighten interest rates to curb inflation which is expected to hit double digits in the coming months. The European stock markets were also in the red. The FTSE 100 in London fell 3.1 percent to 7,045, Germany's DAX fell 3.3 percent to 13,039 and the CAC 40 in Paris fell 2 percent. Spot gold rose 4 percent to 5,886. Spot gold rose 1.3 percent to $1,857.09 an ounce, while Brent crude rose 0.5 percent to $119.12 a barrel at 7:20 am AEST.
Post a Comment