• ASX slips to 11-month low as stronger US jobs data and climbing US 10-year bond yields weigh on global markets
  • Aussie dollar also tumbles more than 1% to its lowest level in nearly a year with further falls forecast
  • Ten of 11 sectors in the red with utilities only one up and financials leading the laggards

The ASX is continuing its downward trajectory closing at an 11-month low, down 0.77% and tracking Wall Street lower, which had significant sell-offs overnight.

The S&P 500 dropped 1.4% to its lowest in four months, the Dow fell by 1.3% erasing its gains for 2023, while the tech heavy Nasdaq Composite was down 1.95%.

Stronger-than-expected US jobs data in August has further spooked equity markets that a hawkish Fed will continue hiking interest rate rises to bring inflation back under control.

US job vacancies rose from 8.92 million in July to 9.61 million in August (expected: 8.82 million), according to the JOLTS survey (Job Openings and Labor Turnover).  The focus will now turns to Friday night’s Non-Farm Payrolls report.

With the prospect of more interest rate rises the 10-year Treasury yield hit 4.8%,  the highest level in 16 years,  the 30-year Treasury yield hit 4.925%, also the highest since 2007.

The AUD has also tumbled more than 1% and is now US63 cents, its lowest level in nearly a year.

Economists are warning it could even fall into the 50s against the greenback in the short term with concerns about the US and Chinese economies and global economy more generally weighing on the Aussie currency.

Even the RBA’s decision yesterday to keep rates on hold at Michele Bullock’s first meeting as governor failed to provide any enthusiasm. The cash rate remains at an 11-month high of 4.1%.

Ten of the 11 sectors were in the red today with utilities the only one in the green, up 0.34% while financials was the biggest laggard, dropping 1.53%

Chart via Marketindex.com.au

 

Asian stocks were also down today on the resilient US jobs figures with the Nikkei tumbling 2.17% while the Yen has depreciated  to 150-per-US dollar level as Japanese government officials say they’re closely watching the currency and won’t rule out an intervention.

Mainland China has been shut since Friday for the Golden Week holiday, which continues until the end of this week.

 

BIG CAP WINNERS

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On the winners list today was packaging company Orora (ASX:ORA) after released an update on its proposed acquisition of Saverglass SAS through the acquisition of all of the shares of Olympe SAS.

ORA says  Olympe SAS is supporting the acquisition and has signed deal to sell its shares in Saverglass to ORA.

A broker note out of Ord Minnett this week has helped boost the share price of gold miner Ramelius Resources (ASX:RMS), which is also up today.

Ord Minnett analysts reckon RMS’s shares are low and expects them to rerate if the gold price strengthens.  The broker has a buy rating and $2.05 price target on its shares.

Gold Miner Northern Star Resources (ASX:NST) is also up today on no real news other than its AGM will be held on November 16.

 

BIG CAP LOSERS

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Virgin Money UK (ASX:VUK), Judo Capital Holdings (ASX:JDO) and Liberty Financial Group (ASX:LFG)  were all among falling stocks today as the financial sector took a tumble.

 

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