Commbank says ‘no, we can’t’
A slump in Commonwealth Bank of Australia (ASX: CBA) weighed on the Australian sharemarket’s benchmark index on Tuesday, amid concerns about the lender’s net interest margin and higher costs. Commonwealth Bank of Australia (ASX: CBA) represents more than 10 per cent of the S&P/ASX 200 Index (ASX: XJO), so a fall of $11.52, or 6.6 per cent, in the banking giant was always going to put the index under pressure.
The S&P/ASX 200 Index (ASX: XJO) retreated 17.1 points on the day, or 0.2 per cent, to 8,818.8 points, with nine out of the 11 sectors closing higher.
Commonwealth Bank of Australia (ASX: CBA) closed at $163.40 after reporting a $2.6 billion cash profit in the September quarter (the first quarter of its financial year). And while operating income was up 3 per cent, operating expenses increased 4 per cent on the back of higher wages and IT costs. The headline net interest margin was reduced, but the bank did not quantify the fall.
Among the other major banks, National Australia Bank Limited (ASX: NAB) slid 57 cents, or 1.3 per cent, to $42.70; Australia and New Zealand Banking Group Limited (ASX: ANZ) added 18 cents, or 0.5 per cent, to $38.16; and Westpac Banking Corporation (ASX: WBC) firmed 53 cents, or 1.3 per cent, to $40.05. Smaller lender Bendigo and Adelaide Bank Limited (ASX: BEN) sank $1.08, or 8.5 per cent, to $11.64 after reporting a 3.2 per cent slide in cash earnings in the September quarter.
In the big materials stocks, BHP Group Limited (ASX: BHP) strengthened 14 cents, or 0.3 per cent, to $42.79; Rio Tinto Limited (ASX: RIO) retreated 23 cents, or 0.2 per cent, to $129.56; and Fortescue Ltd (ASX: FMG) eased 3 cents, or 0.2 per cent, to $19.90. Energy heavyweight Woodside Energy Group Ltd (ASX: WDS) gained 41 cents, or 1.6 per cent, to $26.55, while Santos Limited (ASX: STO) rose 16 cents, or 2.5 per cent, to $6.58.
Lithium lights up resources screens
Lithium stocks were higher as the price of spodumene (the type of hard-rock lithium that is mostly mined in Australia) rose a further 6.2 per cent on Monday to $US1,011 a tonne, the highest level since June 2024. The spodumene price has almost doubled over the past five months.
In response, producer Pilbara Minerals Limited (ASX: PLS) was up 24 cents, or 7.5 per cent, to $3.44; Liontown Resources Limited (ASX: LTR) jumped 9 cents, or 7.8 per cent, to $1.24; Mineral Resources Limited (ASX: MIN), which mines iron ore and lithium, appreciated $2.64, or 6 per cent, to $46.92; and IGO Limited (ASX: IGO), which mines lithium and nickel, was up 29 cents, or 5.4 per cent, to $5.63.
In coal, Whitehaven Coal Limited (ASX: WHC) slipped 15 cents, or 2 per cent, to $7.17; and Coronado Global Resources Inc. (ASX: CRN) tanked 10.5 cents, or 28.4 per cent, to 26.5 cents, after it issued a warning that it could breach its debt covenant obligations, which could put its very existence at risk. Coronado Global Resources Inc. (ASX: CRN) reported a revenue fall and a loss for the recent nine-month period. But fellow coalminer Stanmore Resources Limited (ASX: SMR) put on 4 cents, or 1.8 per cent, to $2.29.
In gold, Northern Star Resources Limited (ASX: NST) gained 80 cents, or 3.2 per cent, to $25.99; Evolution Mining Limited (ASX: EVN) put on 19 cents, or 1.7 per cent, to $11.27; Newmont Corporation (NYSE: NEM)lifted $5.67, or 4.3 per cent, to $136.52; Genesis Minerals Limited (ASX: GMD) gained 17 cents, or 2.8 per cent, to $6.20; and Capricorn Metals Ltd (ASX: CMM) rose 55 cents, or 4 per cent, to $14.24 as it released a conceptual study highlighting potential for underground mining beneath the Orion South open pit at its Mt Gibson Gold Project.
Light & Wonder spreads both for shareholders
Gambling products maker Light & Wonder Inc. (NASDAQ: LNW) surged $13.75, or 11 per cent, to $138.82, as investors continued to bask in an upbeat third-quarter earnings report, an expansion of its share buyback, and the plan to transition to a primary ASX listing. Elsewhere on the industrial screens, biotech heavyweight CSL Limited (ASX: CSL) pulled back a further 79 cents, or 0.4 per cent, to $178.12.
The tech heavyweights were also under pressure, with logistics software leader WiseTech Global Limited (ASX: WTC) losing 19 cents, or 0.3 per cent, to $70.06; and family tracking app Life360 Inc. (ASX: 360) sliding $2.52, or 5.2 per cent, to $45.80 after unveiling a $US120 million deal to buy advertising technology company Nativo Inc. (Private).
Dow Jones claims new record high
In the US, the blue-chip Dow Jones Industrial Average (INDEXDJX: .DJI) pushed to a new record close, gaining 559.33 points, or 1.2 per cent, to close at 47,927.96, led by healthcare bigwigs Merck & Co., Inc. (NYSE: MRK), Amgen Inc. (NASDAQ: AMGN) and Johnson & Johnson (NYSE: JNJ). The broad S&P 500 Index (INDEXSP: .INX) ascended 14.18 points, or 0.2 per cent, to 6,846.61; but the tech-heavy Nasdaq Composite Index (INDEXNASDAQ: .IXIC) eased 58.87 points, or 0.3 per cent, as investors rotated out of technology stocks into other parts of the market trading at lower valuations.
The markets are finally putting the US government shutdown in the rearview mirror, with just two hurdles to go: a House vote tonight our time, and then the Presidential rubber stamp.
| Australian Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| ASX 200 | 0.2 | 0.3 | -1.4 | 1.0 | 10.2 |
| Financials | -1.5 | 0.1 | 0.8 | 5.1 | 15.1 |
| Resources | 1.0 | 1.8 | 2.0 | 12.0 | 22.0 |
| Information Technology | 0.1 | -3.0 | -9.8 | -8.1 | 2.4 |
| Global Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| US 500 | 0.2 | 0.7 | 4.7 | 7.3 | 15.9 |
| Europe | 0.8 | 0.8 | 1.8 | 4.7 | 27.4 |
| Japan | -0.2 | -0.5 | 3.3 | 6.6 | 24.3 |
| China top 50 | 0.2 | 2.6 | 1.0 | 8.7 | 36.8 |
| India top 50 | 0.2 | -0.1 | 1.6 | 1.7 | 1.6 |
| Fixed Interest | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Australian Treasury Bond | 0.0 | -0.1 | 0.0 | 0.1 | 5.5 |
| Australian Corporate Bond | 0.0 | -0.1 | 0.1 | 0.3 | 6.2 |
| US Treasury | 0.0 | 0.1 | 0.4 | 1.8 | 4.5 |
| Cash | 0.0 | 0.1 | 0.3 | 0.9 | 4.2 |
| Commodities & Crypto | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Gold | 2.1 | 3.3 | 3.2 | 21.5 | 57.0 |
| Silver | 3.6 | 4.5 | -1.1 | 32.2 | 64.5 |
| Crude Oil | -0.6 | -0.7 | 3.0 | -3.0 | 0.6 |
| Bitcoin | -0.4 | 0.0 | -14.0 | -14.3 | 19.1 |