Welcome to your five-minute recap of the trading day, and how the experts saw it.
The numbers: The ASX 200’s three pillars, the big banks, miners and energy stocks, ensured it gained for a third day in a row, up 0.3 per cent to 7112.5, despite the RBA’s notes flagging a possible 0.4 per cent rate rise, and a mixed lead from US markets. Six sectors closed in the red, including local tech stocks which again followed Wall Street’s lead. But the big drag came from industrials which was hit by the collapse of Brambles’ takeover, sending its shares sharply lower.
The lifters: Lynas rare Earth 6.6%, Beach Energy 6.1%, Whitehaven 5.9%
The laggards: Brambles -7.6%, PointsBet -4.6%, REA Group -4.5%
The lowdown: Rising energy and iron ore prices ensured our big energy providers and miners underpinned the ASX 200 gains, while further positive news also emerged regarding the potential lifting of China’s COVID lockdowns.
Offsetting this was a decline from tech stocks which followed Wall Street’s mixed lead as investors grappled with worries over interest rates and the risk of recession.
“Markets remain in fight or flight mode while rolling the dice on recession odds,” Stephen Innes of SPI Asset Management said in a report.
The big surprise of the day was the drop from Brambles after it lost a potential suitor, CVC, less than 24 hours after investors were contemplating a $20 billion bid.
A close second was the RBA notes which signalled it is not averse to a 0.4 per cent rate rise next month, although Reserve Bank watchers also noted that it detailed risks to the downside.
“The minutes note a significant downgrade to global growth expectations (even with higher inflation), lower real wages in advanced economies, and a ‘significantly more challenging’ economic outlook in China,” Nomura said.
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