ASX 200 ends flat as defensive stocks gain; Sezzle dives 38pc as Zip rallies

ASX steady in mixed session. Sezzles dives 38 per cent on axed merger as Zip gains; consumer confidence falls, coal miners rally and South32 strikes $US200m royalty deal.

Equity investors are bracing for local and global updates indicative of inflation pressures and potential slowdowns. Picture: Gaye Gerard

Welcome to the Trading Day blog for Tuesday, July 12. The S&P/ASX 200 posted modest gains as investors flock to defensive stocks amid worsening consumer confidence. It comes as Sezzle plunges on axed merger with Zip and Eagers' flags higher first-half profit.

The S&P/ASX 200 index gained 0.1 per cent to 6606.30, while the broader All Ordinaries slid 0.1 per cent to 6786.90.

On Wall Street, the Dow Jones Industrial Average fell 0.5 per cent, while the S&P 500 lost 1.2 per cent and the tech-heavy Nasdaq Composite Index sank 2.3 per cent, led by Twitter’s 11 per cent dive as the social media giant’s board and billionaire Elon Musk prepare for a legal fight over his move to terminate his $US44bn takeover deal.

US bond markets continued to brace for a recession on the inverted yield curve with the 10-year yield down to 2.99 per cent and the shorter-term, two-year yield higher at 3.08 per cent.

Wednesday’s (US time) consumer price report for June will be scrutinised for clues about the impact of Federal Reserve’s aggressive moves to tighten monetary policy and the  start of second-quarter corporate earnings season will indicate consumer and corporate confidence with results from JPMorgan Chase, PepsiCo, Delta Air Lines and others due.

Oil prices declined with the global benchmark Brent down 0.1 per cent to $US107.1 per barrel.  The US Nymex crude price fell by 0.7 per cent to $US104.09 a barrel.

The iron ore futures price is down 1.9 per cent to $US111.65 per tonne.

The Aussie dollar was lower at US67.35c at the US close.