ASX loses steam on US-Canada trade impass, Newmont (ASX:NEM) sinks as gold fall continues, lithium miners surge behind Liontown (ASX:LTR)
The local share market lost steam on Friday, with the ASX All Ordinaries (ASX:XAO) giving up early gains to finish close to 0.2 per cent lower, as weakness in the materials and healthcare sectors, down 1.2 per cent, offset gains in the technology sector, which gained 1.3 per cent. It was a positive day for lithium and related miners, with Liontown (ASX:LTR) and Pilbara (ASX:PLS) both jumping more than 9 per cent on hopes of an improving outlook for the commodity. Gold miners remained under pressure, however, with Newmont Mining (ASX:NEM) finishing rough week by dropping 4.4 per cent and taking the weekly drop to over 8 per cent. The negative sentiment was driven by news of a trade impass and an end to the loose agreement between the US and China as President Trump prepares to do battle on another front in his trade war. Across the week it was a tale of two sectors, as the energy sector posting a 5.4 per cent gain, amid surging oil prices, while materials fell 2 per cent as the gold price fell from all-time highs.
Coal miners under pressure, Mt Gibson (ASX:MGX) sinks on closure, Corporate Travel (ASX:CTD) updates market amid extended halt
Whitehaven Coal (ASX:WHC) struggled once again, falling 0.6 per cent, as teh company confirmed it was burning as much as $200 million per quarter as weak coal prices hit all producers in the sector, with debt increasing as a result. Mt Gibson Iron (ASX:MGX) dropped by nearly one third of its value after the company confirmed it was shutting down an 80 year old mine in WA for a rockfall the week prior, the news sped up the closure of an ageing asset. Pilbara (ASX:PLS) posted a 30 per cent increase in revenue on just a 2 per cent increase in output as the price of lithium continued to recovery and the business made progress in cutting its cost of production. Corporate Travel (ASX:CTD)remains in an extended trading halt but management confirmed it had been able to deliver its full year results after several months, pointing to a 6 per cent increase in revenue and 29 per cent increas in earnings for the year.
US markets gain strongly as inflation slows, Intel (NYSE:INTC)delivers solid result, Proctor & Gamble (NYSE:PG) result beats expectations
All three US benchmarks gained strongly on Friday and are set to boost sentiment in Australia when the market opens, as a lower than expected, delayed inflation print, boosted hopes of several rate cuts before the year is out. September quarter inflation increased just 0.2 per cent, with the annual rate sitting at 3 per cent, and right within the Federal Reserve’s target band. Intel (NYSE:INTC) has returned to profitability and is now sitting on near 100 per cent gains for the US Government’s investment earlier this year, with the company reporting a 3 per cent increase in revenue and a solid profit result, as the company seeks to boost interest in its return to more complex computing chips. Proctor & Gamble (NYSE:PG) reported 2 per cent organic revenue growth, a boost for such a long established brand, owning the likes of Gillette razors, where small changes have little impact on direction.
| Australian Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| ASX 200 | -0.2 | 0.3 | 2.9 | 4.6 | 13.4 |
| Financials | -0.6 | 1.0 | 3.4 | 6.5 | 18.1 |
| Resources | 0.5 | -1.4 | 6.6 | 13.2 | 16.9 |
| Information Technology | 0.3 | 1.9 | -2.9 | -1.2 | 19.6 |
| Global Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| US 500 | 0.8 | 0.6 | 2.8 | 7.6 | 19.5 |
| Europe | 0.5 | 0.4 | 3.9 | 5.0 | 23.8 |
| Japan | 0.2 | 0.6 | 2.4 | 8.5 | 26.7 |
| China top 50 | 1.2 | 2.6 | -0.3 | 4.4 | 32.0 |
| India top 50 | -0.1 | 0.2 | 4.8 | 2.1 | 3.1 |
| Fixed Interest | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Australian Treasury Bond | 0.0 | -0.1 | 1.1 | 1.9 | 6.1 |
| Australian Corporate Bond | -0.1 | -0.1 | 1.1 | 2.0 | 6.7 |
| US Treasury | -0.3 | -0.2 | 0.9 | 3.0 | 4.9 |
| Cash | 0.0 | 0.1 | 0.3 | 1.0 | 4.2 |
| Commodities & Crypto | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Gold | 0.2 | -2.4 | 11.4 | 24.7 | 54.0 |
| Silver | 0.1 | -9.7 | 13.2 | 27.4 | 50.2 |
| Crude Oil | 1.5 | 8.1 | -4.1 | -3.4 | -2.0 |
| Bitcoin | 2.7 | 4.6 | -1.8 | -6.1 | 64.1 |