Oil stocks lead weaker markets: Australia set to be lithium leader

06Oct

Oil stocks lead weaker markets: Australia set to be lithium leader

 

US stocks fell on Wednesday as Wall Street failed to hold on to the sharp gains from the last two sessions. Investors are now wondering whether the market has become too optimistic about the potential for a central bank policy pivot, especially as recent Fedspeak has not deviated from raise-and-hold/higher-for-longer messaging.

Overnight yields rose sharply, with the rate on the benchmark 10-year Treasury climbing to 3.74 per cent after briefly dipping below 3.6 per cent in the previous session. That put pressure on stocks for much of the day. Volatility in the 10 year treasury market has also reached the highest level since the coronavirus-induced ructions of 2020.

The Dow Jones Industrial Average fell 42.45 points, or 0.14 per cent, to 30,273.87. Earlier in the day, it was down 429.88 points. The S&P 500 lost 0.20 per cent to close at 3,783.28, and the Nasdaq Composite slid 0.25 per cent to 11,148.64.

Third quarter earnings season is not too far away and it’s definitely in the market psychology that the Q2 earnings season helped to stabilise the markets. Right now there’s this hope that the earnings season can stabilise the market and maybe come to the rescue again, the way that it did last quarter.

Energy stocks led the sectors on a good day for crude – Saudi Arabia and Russia, acting as leaders of the OPEC Plus energy cartel, agreed on Wednesday to their biggest production cuts in more than two years in a bid to raise prices, countering efforts by the United States and Europe to choke off the enormous revenue that Moscow reaps from the sale of crude. REITs and utilities came under pressure on renewed rate backup.

In company news, Brazilian mining company Vale is in discussions to sell a $2.5bn minority stake in its metals business, as it seeks to boost its copper and nickel output to meet growing demand for the energy transition. Trading houses in Japan, sovereign wealth funds in the Middle East and car companies are examining the asset. Tesla this year signed an offtake agreement with Vale for nickel from Canada, a sign of how the carmaker is working to secure raw materials supply chains outside China.

Currencies

The dollar index was up 1.0 per cent with some of the best gains coming on the sterling cross

One Australian dollar has weakened slightly compared to the US dollar yesterday, buying 64.99 US cents  (Wed: 65.06 US cents), 57.41 Pence Sterling, 93.98 Yen and 65.76 Euro cents.

Commodities

Australia is expected to grab about 20 per cent of the world's lithium hydroxide refining capacity within five years considering several companies are building refineries in Australia which would turn locally mined lithium ore into battery-grade chemicals. Australia is the world's largest producer of the raw form of the metal which is vital to the EV industry, supplying just under half of global demand.

Gold lost $4.20 or 0.2 per cent to US$1726 an ounce.

Silver fell $0.39 or 1.8 per cent to US$20.71 an ounce.

Copper gained $5.60 or 1.6 per cent to US$354.60 a pound.

Oil added $1.46 or 1.7 per cent to US$87.98 a barrel.

Futures

The SPI futures are pointing to a 0.4 per cent fall.

Figures around the globe

Across the Atlantic, European markets closed lower. Paris fell 0.9 per cent, Frankfurt lost 1.2 per cent while London’s FTSE closed 0.5 per cent lower..

In Asian markets, Tokyo’s Nikkei gained 0.5 per cent, Hong Kong’s Hang Seng jumped 5.9 per cent while China’s Shanghai Composite was closed.

Yesterday, the Australian sharemarket gained 1.7 per cent to close at 6816.

Ex-dividends

Austin Engineering (ASX:ANG) is paying 0.3 cents fully franked
ARB Corporation (ASX:ARB) is paying 32 cents fully franked
Bisalloy Steel (ASX:BIS) is paying 9 cents fully franked
N1 Holdings (ASX:N1H) is paying 0.23 cents unfranked
Qualitas Real Estate Income Fund (ASX:QRI) is paying 0.9004 cents unfranked
Webcentral (ASX:WCG) is paying 0.5 cents 20 per cent franked

Dividends payable

Big River Industries (ASX:BRI)
Breville Group (ASX:BRG)
Costa Group Holdings (ASX:CGC)
Eureka Group Holdings (ASX:EGH)
Fletcher Building (ASX:FBU)
Generation Development Group (ASX:GDG)
InvoCare (ASX:IVC)
Lifestyle Communities (ASX:LIC)
Money3 Corp (ASX:MNY)
Pact Group Holdings (ASX:PGH)
QANTM Intellectual Property (ASX:QIP)
Servcorp (ASX:SRV)
Wesfarmers (ASX:WES)
Woodside Energy Group (ASX:WDS)

IPO

There is one company set to make its debut on the ASX today. Keep an eye out for Bridge SaaS (ASX:BGE) after raising $4.5 milion at 20 cents per share.

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

01Apr

The US could see a second $US2trn stimulus package: ASX set to open higher

01 Apr 2020 - The ASX looks set to open higher as US stocks fluctuated between gains and losses yesterday as global cases of coronavirus continue to rise. In the US, Trump has called for a second $US2 trillion stimulus package. And Meridian Energy (ASX:MEZ) has confirmed that Rio Tinto has not yet provided any update on the Strategic Review of the Tiwai Point Aluminium Smelter they own.

Read More
11Jan

Mesoblast (ASX:MSB) trial results boost shares : ASX closed 0.9% lower

11 Jan 2021 - The Australian sharemarket slid today closing 61 points down, or 0.9 per cent lower at 6,697. Shares in Resmed (ASX:RMD) did well today. Shares in Westgold Resources (ASX:WGX) dropped along with Perseus Mining (ASX:PRU). Mesoblast (ASX:MSB) reports that their rexlemestrocel-L drug has shown to be effective in a Phase 3 trial.

Read More
10Mar

Stock sale from SVB Financial drags US stocks lower

10 Mar 2023 - Stocks accelerated losses in the final hour of trading Thursday as banks and other financials sold off, and investors braced for a key payroll report Friday that could set the direction of interest rates.

Read More
09Jul

The price of iron ore hits a 2020 high: ASX set to open higher

09 Jul 2020 - Following small gains from US markets overnight, the ASX looks set to open higher this morning. The US is seeing some fluctuation in the markets as investors weigh up the economic recovery from the pandemic. Back home Victorian farmers are struggling to place their products as many Melbourne restaurants return to lockdown. Iron ore saw a sharp rise in price. Rio Tinto gives contract termination notice to Meridian (ASX:MEZ).

Read More
28Mar

Aurizon (ASX:AZJ) completes sale of Acacia Ridge Terminal: Aus shares gain 1.7% over week

26 Mar 2021 - A strong end to the week for the Australian share market. The ASX 200 index ended the day 0.5 per cent or 34 points higher to finish at 6,824. Over the week, the market has gained 116 points or 1.7 per cent. All of the sectors rose over the week, except Tech stocks. Healthcare was the star performer, up over 5 per cent. Meanwhile, the Aussie dollar has sunk to a 3-month low. Rail freight...

Read More
15Jan

Tyro (ASX:TYR) plunges after scathing Viceroy report: Aus shares close flat

15 Jan 2021 - After edging lower at the open, the Australian share market had a sea-saw session which ended flat. Most of the sectors ended in the red. Information technology led the day, capping 2.6 per cent in gains. Shares in fintech Tyro Payments (ASX:TYR) plummeted today after Viceroy Research released a scathing report on the company’s recent connectivity issue with respect to some of its EFTPOS terminals.

Read More
25May

Major US indexes plummet amid debt ceiling deadlock

25 May 2023 - The Dow Jones Industrial Average fell for a fourth straight day as US lawmakers struggled to reach a deal on the country’s debt ceiling, heightening worries of a potential default.

Read More
24Apr

Market set to defy negative economic data: Aus shares to open higher

24 Apr 2020 - The SPI Futures are pointing to a rise at the open for the Australian share market, despite a raft of negative international economic data overnight. It is pointing to a 0.2% gain. Communications and IT services provider, Speedcast International (ASX:SDA) intends to initiate voluntary financial restructuring in accordance with chapter 11 of the United States Bankruptcy Code.

Read More
03Jan

Dow lifts with Apple a big gainer: ASX poised to open higher

03 Jan 2020 - Following positive leads from US markets, the ASX looks set to open higher this morning. It was the first trading day of the new year and Wall St picked up right where it left off in 2019. The Dow jumped with Chipmakers rising as the best performers of the year. Event Hospitality & Entertainment Group (ASX:EVT) says due to the ongoing bushfire threat within Kosciuszko National Park, the NSW National Parks and Wildlife Service has...

Read More
28May

Blackmores (ASX:BKL) completes its $92m institutional placement: Aus shares close 1.32% higher

28 May 2020 - The Australian share market rose at the open and continued to rally, closing 1.3 per cent up at the end of today’s trade. 93% of businesses accessed support measures - ABS.

Read More