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Central bank chatter and raw materials remain at the heart …

The ASX200

It was the second straight day in the red for the ASX200 on Wednesday, marking the sixth day in the red of 8 sessions.

After falling 0.67% on Tuesday, the ASX200 lost 0.68% to end the day at 7,369.93.

Australian wage growth numbers did not provide any support as falling commodity prices weighed on again.

Positive retail sales from the US had supported a bullish open before the ASX200 hit the setback.

Commodity and banking stocks continued to hurt after dragging the ASX200 into the red on Tuesday.

The statistics

In the third quarter, wages rose by 0.6% compared to the previous quarter, compared to a forecast increase of 0.5%. Wages had risen by 0.4% in the previous quarter. Year-on-year, wages rose by 2.2%.

According to ABS,

  • Private sector wages rose by 2.4% annually, while public sector growth remained below that of private sector.
  • The annual growth rate returned to a more regular pattern of wage growth in the September quarter following the labor market disruptions in 2020 and 2021.

The market movers

It was a mixed day for the banks. CBA led down with a decline of 8.07% ANZ and Westpac with losses of 2.04% and 1.67% respectively. SN – saw a more modest loss of 1.10% while Macquarie group ended the day up 0.56%.

The Commonwealth Bank’s quarterly earnings release weighed on the banking sector. While results were bullish, CBA and the rest of the Big-4 declined on warnings of fierce competition hurting margins.

Commodity stocks had a bearish session. BHP group and Fortescue Metals Group Ltd ended the day with losses of 1.45% and 1.89% respectively. Rio Tinto decreased by 0.98% while Newcrest Mining led the way down, sliding 2.10%.

Other Asian markets

Elsewhere it was a mixed session. The Nikkei 225 and Hang Seng joined the ASX200 with losses of 0.40% and 0.25%, respectively. Bucking the trend was the CSI300, which returned 0.05%.

The day ahead

It’s a particularly quiet day on the Australian economic calendar. There are no essential statistics from Australia or China to give direction.

On the monetary front, RBA has Asst. However, Governor Ellis will give a speech, which will generate some interest.

Outside of the economic calendar, however, commodity prices and US futures are likely to have an impact.

The future

On the futures markets, the ASX200 was 3 points down at the time of writing.

You can find an overview of all today’s economic events in our economic calendar.

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