Energy and Mining stocks tumble as recession fears bite. Picture Getty Image
ASX Large Caps: Energy and Mining drag blue chips down as recession fears bite
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- The ASX fell by 0.34% today
- Energy and Mining sectors fell by 5% each as recession fears bite
- A flood of economic data to be released in the US this week
Recession fears continue to dictate markets as major bourses in Asia, including the ASX, traded lower today.
At Wednesday’s close, the ASX 200 fell by 0.36% lower to 6,606.
A 10% plunge in oil prices overnight has driven a 5% selloff in the ASX Energy sector today, despite Brent bouncing back from near US$100 to US$103 a barrel in Asian hours.
Majors like Woodside Energy (ASX:WDS) and Santos (ASX:STO) were dumped and fell by 6% each as investors price in demand reduction caused by a potential recession.
Citi has predicted that oil will go to US$65 a barrel by end of this year.
Citi analysts, led by Francesco Martoccia, sent a note to investors overnight saying that oil would fall because the a potential global recession would cause demand to decline significantly.
“Currently, our US economists do not expect the US to dip into a recession, but are also skeptical about the Fed’s ability to engineer a modest slowdown, as the historical experience has been of hard rather than soft landings,” Martoccia and colleagues wrote.
The FOMC minutes to be released later tonight will give insights into the Fed’s strategy of engineering a soft landing for the markets.
The ASX Mining sector also fell by 5% today as iron ore futures fell in Singapore to US$108 a tonne, with copper also plunging by 5% overnight. The copper price is often used as a barometer to gauge the strength in economic activities.
Tech was the best performer on the ASX today, up by 3%.
Investors will be keeping watch on a flood of US economic data to be released this week, including the US GDP data on Thursday, and unemployment rate on Friday (all US time).
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| NAN | Nanosonics Limited | 3.94 | 10% | 1,429,033 | $1,083,588,113 |
| TLX | Telix Pharmaceutical | 5.22 | 9% | 809,891 | $1,501,998,437 |
| DMP | Domino Pizza | 75.06 | 7% | 241,418 | $6,072,622,606 |
| XRO | Xero Ltd | 86.1 | 7% | 889,996 | $12,062,451,099 |
| BKL | Blackmores Limited | 73.95 | 6% | 103,496 | $1,361,491,071 |
| SQ2 | Block | 99.38 | 5% | 211,998 | $3,898,341,978 |
| MGR | Mirvac Group | 2.115 | 5% | 5,680,822 | $7,925,569,337 |
| ALU | Altium Limited | 28.9 | 5% | 203,824 | $3,619,343,552 |
| HUB | HUB24 Ltd | 22.21 | 5% | 204,862 | $1,698,834,537 |
| LIC | Lifestyle Communit. | 14.18 | 5% | 127,753 | $1,416,586,525 |
| CDA | Codan Limited | 7.44 | 5% | 311,862 | $1,286,084,778 |
| APE | Eagers Automotive | 10.305 | 5% | 449,545 | $2,530,791,094 |
| SGP | Stockland | 3.79 | 4% | 4,182,509 | $8,665,433,133 |
| JDO | Judo Cap Holdings | 1.315 | 4% | 1,110,423 | $1,392,955,039 |
BNPL stock Zip Co (ASX:ZIP) was up 13% today on no news, while sector leader Block Inc (ASX:SQ2) also rose by 5%.
Tyro Payments (ASX:TYR) was up over 10% and heavyweight Megaport (ASX:MP1) surged 15%, both on no specific news.
EML Payments (ASX:EML) jumped 10% after saying its partner and key European client, Correos, Spain’s national post office network, will support the issuing of a government contract known as the Bono Cultural Joven 2022 (Youth Cultural Bonus) tender, supporting the cultural sector which was adversely impacted during Covid.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CRN | Coronado Global Res | 1.4675 | -10% | 7,588,482 | $2,741,001,849 |
| SYA | Sayona Mining Ltd | 0.15 | -9% | 28,602,913 | $1,360,714,191 |
| CIA | Champion Iron Ltd | 4.76 | -8% | 2,939,563 | $2,687,941,755 |
| S32 | South32 Limited | 3.54 | -8% | 25,289,864 | $17,819,461,598 |
| ILU | Iluka Resources | 8.7 | -8% | 2,193,626 | $4,009,034,424 |
| SFR | Sandfire Resources | 4.09 | -8% | 2,923,722 | $1,816,219,786 |
| RIO | Rio Tinto Limited | 93.28 | -7% | 2,079,146 | $37,411,170,047 |
| RRL | Regis Resources | 1.4875 | -7% | 5,678,454 | $1,211,738,708 |
| BPT | Beach Energy Limited | 1.6225 | -7% | 6,344,767 | $3,992,333,898 |
| WDS | Woodside Energy | 30.18 | -7% | 9,904,733 | $61,595,442,571 |
| NIC | Nickel Industries | 0.91 | -7% | 12,931,155 | $2,662,991,660 |
| GNC | GrainCorp Limited | 8.54 | -7% | 1,334,395 | $2,094,028,996 |
| HTA | Hutchison | 0.07 | -7% | 1,800 | $1,017,938,143 |
| NCM | Newcrest Mining | 19.6 | -7% | 4,176,969 | $18,746,656,955 |
| MIN | Mineral Resources. | 42.78 | -6% | 975,505 | $8,610,549,661 |
| STO | Santos Ltd | 7.04 | -6% | 13,753,827 | $25,196,799,276 |
| YAL | Yancoal Aust Ltd | 4.8 | -6% | 409,971 | $6,734,241,129 |
| BHP | BHP Group Limited | 37.76 | -6% | 12,322,887 | $202,492,927,600 |
| PRU | Perseus Mining Ltd | 1.61 | -5% | 3,242,904 | $2,317,873,313 |
