• The ASX fell on Wednesday on concerns of fresh regional tensions
  • Tech leads the bourse, while other sectors fall
  • Aussie retail sales better than expected

 

Aussie shares fell 0.40% on Wednesday, with all 11 sectors but Tech trading in negative territories.

Investors are concerned about fresh tensions in the region as US House Speaker Nancy Pelosi makes a speech in Taiwan earlier today.

Overnight, Wall Street also fell across the board as tensions weighed on sentiments.

eToro’s Global Markets Strategist , Ben Laidler, sees more pain ahead.

“Unsurprisingly, the outlook for profits is being cut as recession risks pile up,” Laidler said.

“The average recession sees earnings fall 20% but earnings are being cut very slowly, reflecting the company profits’ resilience.

“Globally, downgrades are outpacing upgrades two to one. Both the US and global ex-US earnings growth outlook has eased back by one percentage point to around 8% in recent weeks,” he said.

On the ASX today, the Tech sector was the lone performer, up by over 1%.

The sector was led by leaders Wisetech (ASX:WTC), which was up 2%, and Xero (ASX:XRO), which rose almost 3%.

ASX energy stocks came under pressure on Wednesday despite British giant BP reporting its highest profit in 14 years of $US8.5 billion for the second quarter.

The benchmark Brent crude is now trading just above US$100 a barrel at US$100.30, and has fallen by 6% for the week.

All eyes now turn to the OPEC+ (including Russia) production meeting later tonight. According to Reuters, two of eight sources said a modest output hike would be discussed. The rest said a boost was unlikely.

Meanwhile, Aussie retails sales topped forecasts in the June quarter.

According to ABS data today, retail sales for the quarter rose an inflation-adjusted 1.4% from the previous quarter, beating market forecasts of 1.2%.

The Consumer Discretionary sector was down 1.61% despite the strong data.

 

BIG CAP WINNERS

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Pinncacle Investment (ASX:PNI) rose 14% today on no news.

Lynas Rare Earths (ASX:LYC) rose by 6% as the company’s CEO, Amanda Lacaze, makes an investor presentation today at the Diggers & Dealers Mining Forum.

 

BIG CAP LOSERS

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Market operator ASX (ASX:ASX) was down 3% after telling the market that its CHESS replacement project will encounter more delays.

The company said that its application software provider has identified that more development is required than previously anticipated.

The ASX adds: “Based on current information, we do not expect that the go-live date for new CHESS could be before late 2024.”