- ASX 200 rebounds by 0.37%
- ASX lithium stocks were hammered
- US Fed Chairman says recession is a ‘possibility’
Local blue chips bounced back on Thursday despite a brutal session for the lithium sector.
At the close, the ASX 200 was up 0.37% driven mainly by a rebound in rates sensitive sectors like Real Estate and Consumer Discretionary.
It was a difficult day for lithium stocks with some plunging by more than 10% as oversupply concerns continue to spook the sector. ASX 200 newcomer Lake Resources (ASX:LKE) fell by more than 15%.
Investors were also concerned over reports that Tesla’s factories in Germany and the US might be struggling and making losses to due to supply disruptions in China.
Meanwhile, copper prices fell to a 15-month low overnight, almost 25% below its $5.0395 l/b high of just four months ago.
According to Tony Sycamore, market analyst at City Index, one of the traditional measures of global economic health is the price of copper.
“Demand for copper increases during an expansionary economic cycle, while demand for copper drops when global growth is slowing,” Sycamore said.
US Fed chairman Jerome Powell told Congress overnight that global growth is declining, and that a US recession is a ‘possibility’.
“It’s certainly a possibility,” Mr Powell said during the first of two days of congressional hearings.
“We are not trying to provoke and do not think we will need to provoke a recession, but we do think it’s absolutely essential to bring down inflation, which is running at a 40-year high,” he said.
Oanda analyst, Jeff Halley, said the comments created a limbo for markets.
“That left markets in somewhat of a no man’s land. US equities were clearly dying for any excuse to hit the buy button, such is their genetically pre-programmed disposition,” Halley said.
Back home, the ASX Energy sector also retreated today as oil prices sank in Asian hours, where Brent crude is now trading at US$109 a barrel.
Bitcoin meanwhile has climbed back just above the US$20k after slipping below to US$19,900 earlier this morning.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| JLG | Johns Lyng Group | 5.3 | 6% | 1,463,040 | $1,298,567,321 |
| GNE | Genesis Energy Ltd | 2.35 | 5% | 33,572 | $2,341,403,191 |
| CQE | Charter Hall Soc In | 3.38 | 5% | 344,029 | $1,173,177,976 |
| SQ2 | Block | 89.17 | 5% | 226,693 | $3,502,929,866 |
| BKL | Blackmores Limited | 68.66 | 5% | 52,018 | $1,269,002,167 |
| PME | Pro Medicus Limited | 40.53 | 5% | 173,397 | $4,036,165,213 |
| IPH | IPH Limited | 7.73 | 5% | 808,814 | $1,614,885,932 |
| LIC | Lifestyle Communit. | 12.75 | 5% | 122,121 | $1,273,359,696 |
| GMG | Goodman Group | 18.055 | 5% | 2,672,250 | $32,226,840,005 |
| PNI | Pinnacle Investment | 6.93 | 5% | 1,167,736 | $1,323,084,769 |
| CIP | Centuria I REIT | 2.97 | 4% | 1,698,914 | $1,809,552,310 |
| MTS | Metcash Limited | 4.14 | 4% | 5,627,032 | $3,842,855,576 |
| JHX | James Hardie Indust | 30.91 | 4% | 1,449,059 | $13,238,229,262 |
| NXT | Nextdc Limited | 10.505 | 4% | 796,028 | $4,616,776,419 |
| ARF | Arena REIT. | 4.215 | 4% | 593,708 | $1,407,512,209 |
| CEN | Contact Energy Ltd | 6.6 | 4% | 7,779 | $1,575,384,618 |
| CLW | Chtr H Lwr | 4.47 | 4% | 2,238,796 | $3,115,938,058 |
| SCP | SCA Property Group | 2.85 | 4% | 1,657,888 | $3,069,787,215 |
| VUK | Virgin Money Uk PLC | 2.28 | 4% | 4,766,497 | $1,804,898,053 |
| GOZ | Growthpoint Property | 3.51 | 4% | 406,400 | $2,615,580,020 |
Genesis Energy (ASX:GNE) was the best large cap performer today, up by 6% on no news.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LKE | Lake Resources | 0.695 | -17% | 94,884,735 | $1,161,042,041 |
| SYA | Sayona Mining Ltd | 0.115 | -12% | 100,771,796 | $1,071,522,420 |
| LTR | Liontown Resources | 0.8875 | -9% | 23,656,640 | $2,126,458,442 |
| CIA | Champion Iron Ltd | 5.035 | -8% | 2,896,589 | $2,832,677,080 |
| CHN | Chalice Mining Ltd | 3.425 | -8% | 4,242,705 | $1,382,873,325 |
| RRL | Regis Resources | 1.5275 | -8% | 10,037,521 | $1,249,154,773 |
| SFR | Sandfire Resources | 4.51 | -8% | 5,205,041 | $2,000,711,638 |
| PDN | Paladin Energy Ltd | 0.54 | -7% | 31,040,313 | $1,727,111,821 |
| NVX | Novonix Limited | 2.12 | -7% | 5,432,822 | $1,103,109,608 |
Lithium stocks Sayona Mining (ASX:SYA), Liontown Resources (ASX:LTR) and Ioneer (ASX:INR) all fell by around 8-12%.