• ASX 200 drops for the third day this week
  • Tech sector sank 7% on bearish sentiment
  • US CPI was higher than expected


Local shares fell again today, capitulating to their third loss this week. At the close, the ASX 200 fell by 1.82% with all 11 sectors in the red.

The Tech sector (ASX:XIJ) sank by 8% amid bearish global sentiment and panic selling that saw the Nasdaq plunge by 3% overnight.

A higher than expected US CPI also didn’t help the market. The April annual US CPI readout was 8.3%, down from 8.5% in March, but both the headline and core CPI rose higher than forecast to 0.3% and 0.6% respectively.

According to a fresh note out of asset manager T. Rowe Price, to bring inflation under control, central banks must tighten monetary policy to the point where growth slows down significantly.

“And when growth slows sharply, particularly when it is accompanied by rising interest rates, financial market volatility usually ensues,” the note said.

Back home, local tech investors were also spooked today by sector leader Xero’s full year net loss of NZ$9.1million, which dragged the XRO stock price lower by 12% to a one-year low.

Meanwhile, a drop in Covid cases in China wasn’t enough to lift Energy and Mining shares on the ASX, with both sectors falling by around 1% today.

Bitcoin has also crashed to US$26,800 at 4pm AEDT.



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Commonwealth Bank (ASX:CBA) rose just 1% despite reporting a solid $2.4bn cash profit in Q3. However, the bank reported a 1% fall in operating income to $6.1bn.

Judo Capital (ASX:JDO) lifted 6% after an investors update, with the company forecasting $6 billion in lending portfolio in FY22. The lending firm also said it expected net interest income to grow to around $160.5 million.



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Block Inc (ASX:SQ2) and Altium (ASX:ALU) sank 17-18%, and were the worst performing large caps today off the back of sentiment.

Xero (ASX:XRO) fell by 12% today after reporting that revenue for full year FY22 increased by 29% to NZ$1.1 billion, with a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion.

Earnings however, missed estimates due to weaker margins. Xero’s EBITDA rose by 11% to NZ$212.7m, but the bottom line was a net loss of NZ$9.1 million.