• The ASX 200 closes over 1pc lower on Wednesday
  • Energy stocks drag the index
  • Australian GDP grows again in first half

 

Aussie shares are down another 1.40% on Wednesday following last night’s lead from Wall Street.

After losing 4% last week, the ASX is already down 1.5% this week, staring down the lowest level in almost two months.

All 11 sectors except Tech were down as investors weigh up the possibility of more rate hikes in the US.

Overnight, a stronger than expected services sector data fuelled expectations that the Fed might dish out one of its supersized 75bp hikes come September 21st.

Chief Investment Officer at Ariel Investments, Rupal Bhansali, has warned against ‘buying the dip’.

‘Don’t fight the Fed’ still holds true,” said Bhansali.

“Although taking risks has been rewarded over the past decade – this is likely to have consequences over the next decade, as ‘The Fed put’ comes to an end.

“The Fed is now focused on fighting inflation and helping Main Street, not Wall Street,” said Bhansali.

“In my view, it is prudent to consider using the head fake rallies such as those in July and August to reduce exposure to junk bonds and junk equities.

“Junk equities are characterised by what my team at Ariel calls ‘the four Ls’: Loss-Making businesses or Leveraged companies, and stocks with Lofty valuations or Ludicrous expectations,” he added.

Meanwhile, the USD has pushed further up to its highest level in two decades. Right now, the Aussie is trading at US67.15, the lowest level not seen in over two years.

The Australian economy expectedly grew stronger in the first half of the year, an ABS release today has shown.

According to the release, Australian GDP grew 0.9% in the June quarter and 3.6% in 2022. It was the third consecutive quarter of economic growth, driven by a 37% surge in transport services.

Back to the ASX, energy stocks were the worst performers today as oil prices slipped another 3% overnight despite OPEC+ deciding to cut production by about 100,000 barrels per day from October.

Brent has now fallen by around 25% since early June after touching multiyear high peaks in March. The next OPEC+ meeting will be held on October 2nd.

Looking ahead tonight, US trade balance is scheduled to be released while in Europe, Q2 employment and GDP are also due out.

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
RMD ResMed Inc. 33.46 4% 1,980,256 $13,284,318,594
FPH Fisher & Paykel H. 17.37 3% 502,513 $9,760,243,429
PXA Pexagroup 15.66 2% 260,478 $2,709,538,041
CXO Core Lithium 1.525 2% 18,124,923 $2,597,107,057
VNT Ventiaservicesgroup 2.9 3% 1,267,509 $2,412,466,135
SYA Sayona Mining Ltd 0.275 2% 54,709,050 $2,240,671,462
LNK Link Admin Hldg 4.315 3% 3,453,559 $2,154,547,420
VUK Virgin Money Uk PLC 2.55 4% 6,228,243 $1,907,088,683
GNC GrainCorp Limited 8.26 2% 1,099,318 $1,811,570,265
ELD Elders Limited 11.76 2% 680,246 $1,796,351,070
BRN Brainchip Ltd 0.925 2% 8,197,227 $1,556,022,740
MP1 Megaport Limited 7.425 2% 744,343 $1,148,278,735
CXL Calix Limited 6.48 2% 238,877 $1,026,171,430
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Healthcare giants ResMed (ASX:RMD) and Fisher & Paykel Healthcare (ASX:FPH) rose 3-4% on no specific news.

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BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap
CHN Chalice Mining Ltd 3.83 -12% 6,220,146 $1,644,418,738
IFL Insignia Financial 3.15 -7% 1,715,843 $2,210,048,764
VEA Viva Energy Group 2.78 -6% 3,183,313 $4,607,926,672
KAR Karoon Energy Ltd 2.11 -5% 2,813,667 $1,244,530,335
NHC New Hope Corporation 5.44 -5% 4,827,561 $4,761,082,509
NIC Nickel Industries 0.8525 -5% 16,152,513 $2,444,489,780
CDA Codan Limited 6.07 -5% 1,057,713 $1,154,040,759
DEG De Grey Mining 0.92 -5% 2,155,674 $1,361,294,433
BPT Beach Energy Limited 1.68 -5% 5,246,895 $4,015,147,235
SLR Silver Lake Resource 1.165 -5% 3,754,552 $1,137,472,590
CQE Charter Hall Soc In 3.435 -4% 1,407,965 $1,314,956,379
CIA Champion Iron Ltd 4.94 -4% 2,480,075 $2,663,544,599
AWC Alumina Limited 1.4125 -4% 15,224,106 $4,265,471,683
MEZ Meridian Energy 4.43 -4% 50,869 $5,804,658,994
WHC Whitehaven Coal 8.485 -4% 8,615,980 $8,415,190,538
WDS Woodside Energy 33.85 -4% 4,390,252 $66,608,141,967
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Mine developer Chalice Mining (ASX:CHN) was down 11% on no news.

Origin Energy (ASX:ORG) and Woodside Energy (ASX:WDS) fell 3% on the back of lower oil prices.