• The ASX slipped another 0.5% today
  • Tech stocks dragged shares lower, tracking movements on Wall St overnight
  • Australia GDP rose by just 0.6%, missing forecast


Tech stocks dragged local shares lower on Wednesday as recession worries jolted markets worldwide.

At the close, the ASX 200 index was 0.5% lower.

Overnight, Wall Street sold off across the board as US bank CEOs sounded alarm of trouble ahead.

JP Morgan CEO Jamie Dimon told CNBC that a mix of headwinds were likely to tip both the US and global economy into a “mild to hard” recession by middle of next year.

Goldman Sachs head David Solomon meanwhile declared that we are facing uncertain times, that markets clients are reducing their risk, and that the rebound in “capital markets activity hasn’t happened yet.”

China’s customs data released today show that exports shrank 9% from a year earlier, narrowing the country’s global trade surplus by 2.5% and missing expectations.

Australia’s GDP for the September quarter has also missed expectations, increasing by just 0.6% versus forecast of 0.7%. Year on year, the GDP rose by 5.9%.

The OECD has said that Australian GDP could fall 1.9% in 2023 as consumption slows down – a view also shared by economist at AMP.

Gold is trading steady at US$1,772 an ounce.

Earlier today, fund manager VanEck launched a Gold Bullion ETF under the ticker NUGG. The ETF is physically backed by gold bullion sourced from Australian gold producers.

In addition to the liquidity by being traded on the ASX, NUGG allows investors the option to convert their NUGG holdings into physical gold from The Perth Mint.

On the ASX, coal stocks led the winners as coal prices gained another 2.5% following global giant Glencore’s announcement that it was planning to close some of its coal operations earlier than expected.

Bitcoin meanwhile traded sideways today, changing hands now at US$17,038,

BTC continues to hover around the $17k level, which is rather impressive given the recession driven risk-off tone on Wall Street.

“Crypto traders are looking for something major to happen before they get back into this space,” said OANDA analyst Edward Moya.

“Either we see decisive regulatory actions put in place to foster long-term growth, or the busy cycle continues as other crypto companies go under.”



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Bellevue Gold (ASX:BGL) dropped 12% following a $70m cap raise to develop its namesake gold project in WA. The company tapped institutions for $60m at $1.05 a share, and retail investors for $10m.

Beach Energy (ASX:BPT) fell 10% on no specific news, but it did get a downgrade from broker Morgans who issued a $1.91 price target.