The Match Out: Recession fears send the market lower, OZL green lights new project. Go the Swans!

James Gerrish

Market Matters

The rout in the ASX resumed today after yesterday’s holiday. Weakness in risk assets came on the back of rate hikes from the US Fed (+75bps) and the BOE (+50bps), while the FOMC Chairman also warned of a recession. Today the market was concerned with a hit to earnings expectations and the higher discount rate that comes with a hawkish Fed. Materials held up in the face of the selling as iron ore found some support thanks to improving construction activity in China and the hope for further stimulus here.

  • The ASX 200 finished down -125pts/ -1.87% at 6574
  • Materials (-0.49%) were by far the best sector to be today, though still in the red to the end of the week.
  • No surprises that the two sectors most concerned with a recession and higher rates were the hardest hit today. Consumer Discretionary and Tech both fell -4.44%.
  • The index struggled for the second consecutive week, falling -164pts/-2.44% today, a similar move to what was experienced last week.
  • Oz Minerals (ASX: OZL)  +1.69%, the copper miner rallied today after announcing approval for the final investment decision at West Musgrave was successful. The $1.7b nickel & copper development has all the key approvals and licences in place to progress now. No update on the bid from BHP yet.
  • Link (ASX: LNK)  halt, didn’t trade today as they await news on the Dye & Durham bid with a court battle in the UK potentially skittling the deal.
  • Coal stocks held up in the face of the selling. News that a major Canadian producer is limiting production creating further tightness in supply.
  • Iron Ore was ~2% higher in Asia today, with the big three miners all in the green.
  • Gold was flat today, currently trading around US$1672. Gold stocks were mostly lower despite the precious metal holding up
  • Asian stocks were weaker today, Japan’s Nikkei holding up the best, though still falling -0.58%, Hong Kong down -0.80%
  • US Futures are mixed. S&P500 flat, Dow Futures around -0.15% and the Nasdaq futures -0.1%

ASX200 Chart

Sectors this week

Stocks this week

Broker Moves

  • Bendigo & Adelaide Raised to Reduce at CLSA; PT A$8.60
  • Link Administration Cut to Equal-Weight at Morgan Stanley

Major Movers Today

Have a great night

The Market Matters Team

Make informed investment decisions

At Market Matters, we write a straight-talking, concise, twice daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.

The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.

Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

2 stocks mentioned

James Gerrish
Portfolio Manager
Market Matters

James is the Lead Portfolio Manager & primary author at Market Matters, a digital advice & investment platform with over 2500 members that offers real market intel & portfolios open for investment. He is also a Senior Portfolio Manager at Shaw and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment