• The ASX 200 falls 1.40% on Friday, taking its weekly loss to 2.15%
  • Energy and gold stocks weigh as commodity prices fell overnight
  • RBA Governor says he will keep on lifting rates

Energy stocks once again weighed on the ASX 200, as the benchmark index tumbled 1.5% lower on Friday, finishing the week down by 2.3%.

All 11 sectors fell but it was the Energy and Gold sectors that led the rout.

Overnight, oil prices retreated by 4% with natgas down by 9% on concerns of faltering demand in the US.

A raft of US economics data releases including retail sales were sluggish, suggesting that consumers failed to keep up with inflation.

The US Department of Energy also dampened the oil market, after saying that it won’t replenish the Strategic Petroleum Reserve (SPR) until after FY23, preferring instead to use current supplies to fight supply issues.

The SPR has now been depleted since President Biden took office – from 640 million barrels to 450 million barrels.

Gold got pummelled once again, trading now at US$1,663.50 an ounce. Selling pressure on bullion will increase if the Fed decides to aggressively tighten rates.

Meanwhile, data released today show that China’s home prices have slumped for the 12th consecutive month, putting pressure on the steel industry.

But there was also some good news from the world’s second biggest economy as retail sales rose 5.4% and industrial production grew 4.2% YoY – beating expectations.

Back home, the RBA governor Philip Lowe said that he will keep lifting rates, but at a slower pace.

Speaking to the House of Representatives Standing Committee on Economics in Canberra today, Lowe said: “At 2.35 per cent, I think the rate is still too low.”

Lowe also warned that property prices could fall by 10% in this cycle.

“We don’t want to forecast housing prices, because it’s very, very difficult to do, but as interest rates rise further, and they will rise further, I’d expect more heat to come out of the housing market and prices to come down further,” he said.

Most banks and analysts have now put their bets on a 50bp hike by the RBA on October 4.

To company news, toll roads developer and operator Atlas Arteria (ASX:ALX) was the worst performing large cap today, down by 15%.

The company has just announced the completion of an institutional cap raise of $2.5 billion to acquire a 67% stake in Skyway Concession company.

Looking ahead tonight, the Eurozone will release its August CPI, while in the US, the August retail sales date is due out.
 

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APM Human Services (ASX:APM) rose 6% on no specific news. Earlier this week, APM denied that it was in negotiations to buy out workforce training company Angus Knight.
 

BIG CAP LOSERS

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Gold stocks Capicorn Metals (ASX:CMM), Gold Road Resources (ASX:GOR) and Silver Lake Resources (ASX:SLR) fell 5-6% on the back of lower gold prices.

Energy stocks Yancoal (ASX:YAL) and Ampol (ASX:ALD) fell on oil sentiment.

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