Markets wrap: Recession fears keep ASX subdued in first session under Albanese government
Mining and energy companies gained but there were losses for the local banks, health care firms and supermarkets in the first ASX session under an Albanese government.
NewsWire
Don't miss out on the headlines from NewsWire. Followed categories will be added to My News.
The ASX started strongly in its first day under an Anthony Albanese government but Monday’s session ultimately finished flat after being dominated by familiar fears around the global economy.
The benchmark ASX 200 rose by as much as 50.4 points – or 0.7 per cent – to hit a high of 7196.0 after a federal election that provided a clear result in favour of the Labor Party.
But the market soon handed back its gains amid lingering economic concerns, with the major banks and supermarkets offsetting progress for materials companies such as BHP, Rio Tinto and Fortescue Metals.
The top 200 companies finished the day just 3.3 points, or 0.1 per cent, higher at 7148.9, while the broader All Ordinaries edged 7.9 points ahead, also 0.1 per cent, to 7398.9.
The Australian dollar climbed back to near 71 US cents in the wake of the weekend vote.
Shares in Commonwealth Bank fell 0.1 per cent on Monday to $104.50, Westpac slipped 0.7 per cent to $23.41, NAB fell 0.9 per cent to $30.78, and ANZ shed 0.8 per cent to $25.31.
Macquarie Group was also down, losing 0.8 per cent to $179.88.
Mining stocks were strong after iron ore rose 2.5 per cent to $US134.36 a tonne, boosted by China cutting its benchmark rate for mortgages.
BHP was up 1.4 per cent to $47.83, Rio Tinto rose 1.1 per cent to $109.50 and Fortescue Metals soared 2.8 per cent to $20.71.
The lead from Wall Street was a mixed one, with investors clearly nervous about the volatile cocktail of global inflationary pressures and Chinese Covid-19 controls.
Asian markets were trading on the soft side after Beijing tightened virus restrictions in parts of the city, and Shanghai’s Jingan district closed shops and told residents to stay at home.
On local shores, a decisive change of government in Canberra may have given investors some degree of certainty, but OANDA’s Asia Pacific senior analyst, Jeffrey Halley, noted it had still been a muted reaction to Labor’s win.
Others, including IG Markets analyst Hebe Chen, said it was clear Mr Albanese faced a number of economic challenges.
“While it’s still not clear how the new government will be able to remedy surging inflation, one thing is clear: the majority of voters are shifting their focus to the betterment of day-to-day life amid the fading fears of the virus,” IG Markets analyst Hebe Chen said.
“A miracle (one of Scott Morrison’s favourite words) is probably not a need under the current circumstance, but the opportunity for a change is.”
Consumer giants were in the dumps, with supermarket Woolworths slipping 1.9 per cent to $34.67, rival Coles 0.7 per cent down at $17.76 and Bunnings owner Wesfarmers dropping 1.2 per cent to $46.18.
There was also a 1 per cent decline for Telstra to $3.92 and a 1.8 per cent drop for Qantas to $5.46.
Healthcare giant CSL was weak, shedding 0.7 per cent to $273.15, while breathing device manufacturer Resmed slipped 0.4 per cent to $28.25.
Tech shares were mixed, with Afterpay owner Block Inc dropping 2.4 per cent to $124.61, but gains coming for Xero, Wisetech Global, Appen, Altium, Megaport and ASX Ltd.
The big energy firms also rose, with Woodside Petroleum 0.5 per cent higher to $28.91, Santos 1.2 per cent ahead at $8.18 and Beach Energy rising 0.6 per cent to $1.62.
Originally published as Markets wrap: Recession fears keep ASX subdued in first session under Albanese government
AFL racism scandal claims club boss
The toll of the drawn-out racism scandal involving Hawthorn and former staff has resulted in the resignation of the club’s chief executive.
‘Tortured’ dad confessed abuse, court hears
An accused vigilante killer told police a young dad “confessed” to sexually abusing children while being tortured, a jury has heard.