• The ASX finished flat on Wednesday, with Financial and Real Estate leading the way
  • Iron ore miners slump as iron ore futures fell in Dalian
  • Bank of Queensland delivered 15% profit increase in FY22

 

The ASX has eked out a 0.04% gain after opening lower this morning.

Rates sensitive sectors Financials and Real Estate led, while the miners lagged as iron ore slumped in Asian hours.

Iron ore futures slumped on the Dalian exchange and hit a two-week low as concerns over China’s stringent zero-covid policy and struggling property sector continue to spook markets.

Although the blast furnace capacity utilisation rate in China has risen steadily over the last two months, the country has also stepped up its COVID-19 testing as infections ticked up in recent days.

China said most of the new COVID cases were found in tourist destinations, including the scenic and sparse northern region of Inner Mongolia.

Back home, RBA assistant governor Luci Ellis told bankers and economists at the Citi conference that if inflation proves to be more sustained than what the RBA expects, it would have potentially serious implications.

Dr. Ellis said those who’ve made financial decisions based on the assumption that rates will stay low for a very long period of time may be forced to “deleverage” or sell their assets.

The Aussie dollar meanwhile has hit a three-year low, trading now at US62.67c.

The Aussie dollar has been a victim of the rampaging US dollar, which has surged due to the rates differentials between the Fed’s fast increasing cash rate and other central bankers.

Thursday’s US CPI data will be the next major data point in deciding the next Fed rate move.

Economists predict the headline CPI to come in at 8.1% y/y, and anything higher than the previous reading of 8.3% could spell more disaster for the AUD and equities.

The market is also expecting release of the minutes of the FOMC’s last meeting later tonight, which will provide an insight into the Fed’s frame of mind.

On the ASX today, Bank of Queensland (ASX:BOQ) was the best performing large cap, up by almost 11%.

The bank released its results for FY22, in which it reported a 15% increase of NPAT to $426 million. BoQ declared a final dividend of 9% to 24c fully franked.

Looking to tonight’s session on Wall Street, expect to hear from Fed’s mssrs Kashkari and Barr and the release of EU’s August industrial production.

 

BIG CAP WINNERS

Swipe or scroll to reveal the full table. Click headings to sort.

WordPress Tables Plugin

All major banks rose today on the back of BoQ’s strong full year.

Brainchip (ASX:BRN) rose 5% after being granted its 10th US patent. The company has just been issued a  new patent, “An Improved Spiking Neural Network”, by the US Patents and Trademarks Office.

Coronado Global Resources (ASX:CRN) rallied 15% after confirming that it was in discussion with NYSE-listed Peabody Energy.

“However, as no transaction has been agreed and the discussions are ongoing, Coronado is not yet in a position to provide further details,” Coronado’s statement said.

Coal miners were also in the winners’ circle with New Hope (ASX:NHC) and Whitehaven Coal (ASX:WHC) testing all time highs.

 

BIG CAP LOSERS

Swipe or scroll to reveal the full table. Click headings to sort.

WordPress Tables Plugin

Shares in iron ore stocks like BHP (ASX:BHP) and Rio Tinto (ASX:RIO) slipped around 1% on iron ore price weakness.

Read MoreMarkets

Featured Companies

You might be interested in