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Welcome to your five-minute recap of the trading day and how the experts saw it.
The numbers: The Australian sharemarket deepened its losses throughout the day following a broad sell-off on Wall Street overnight, where the S&P 500 saw its biggest slide since mid-June.
The ASX200 finished the session down by 1.2 per cent, or 85.1 points, at 6961.8 points.
Wall Street has kicked off the week with sharp losses, which weighed on the Australian stock market.Credit:AP
The lifters: Software maker Altium finished up 19.8 per cent on the back of full-year results that exceeded expectations; medical glove maker Ansell rose 8.6 per cent; and lithium miner Allkem lifted 5.3 per cent.
The laggards: Endeavour Group fell 12.3 per cent, despite reporting an 11.2 per cent increase in profits, as the bottleshop owner faces continued inflation and supply chain headwinds; EML Payments dropped 11.6 per cent; and Telix Pharmaceuticals sank 6.3 per cent.
The lowdown: A sell-off in consumer staples (Endeavour, Coles, Woolworths and Treasury Wine all ending the session in the red) led losses on the local bourse on Tuesday, with financials and healthcare stocks also down around 2 per cent.
Energy stocks and utilities were the only sectors not in the red as the sharemarket was once again following in the footsteps of what happened on Wall Street overnight.
“We’re certainly seeing a risk-off sentiment in the market as people are digesting some information that potentially what we had in June is just what we call a bear market rally,” said Jamie Hannah, VanEck’s deputy head of investments and capital markets.
“That type of scenario indicates that we get a bit of a bounce when the market is overall trending down,” he said. “There’s still a lot of uncertainty.”
Retail and consumer stocks declined, even though some of the biggest names in the sector on Tuesday expressed high hopes that spending levels will remain elevated: Peter Allen, the outgoing chief of Scentre Group – which owns and manages dozens of Westfields – denied that the $12 billion in half-year sales at its shopping centres was “revenge spending”, while Dan Murphy operator Endeavour Group boss Steve Donohue was sounding bullish for the Christmas season this year.
Meanwhile, Kogan CEO and founder Ruslan Kogan says his online marketplace Kogan.com was ready to move on from mistakes made on inventory levels in the thick of the pandemic as the company is chasing frugal shoppers in the current cost-of-living crunch.
Kogan swung to a statutory loss of $35.5 million for 2022 as the company dealt with excess inventory levels and holding costs throughout the year.
On Wall Street overnight, the S&P 500 benchmark index slumped 2.1 per cent, nearly doubling its losses from last week, when it broke a four-week winning streak. The Dow Jones Industrial Average fell 1.9 per cent and the Nasdaq dropped 2.5 per cent.
Technology companies and retailers had some of the heaviest losses on Wall Street. Smaller company stocks also lost ground, pulling the Russell 2000 index 2.1 per cent lower.
“You’ve had quite a rally and there’s reason to not be sure where we’re going from here,” said Tom Martin, senior portfolio manager with Globalt Investments. “There’s still decent potential for a recession.”
Tweet of the day:
Quote of the day: “We made some wrong decisions, we’ll cop them on the chin, fix them and move forward,” said Ruslan Kogan after his company Kogan.com revealed that a wrong bet on continuing strong sales after the pandemic boom led his company to expand its range and inventory more than necessary, wiping out earnings.
You may have missed: Elon Musk has subpoenaed Jack Dorsey, co-founder of Twitter and his longtime friend, in his defence against the social media company’s lawsuit to make him complete his proposed $US44 billion ($64 billion) takeover.
The Tesla billionaire is rapidly marshalling documents and data to show that Twitter understated how much of its customer base is made up of spam and robot accounts. Musk’s decision to subpoena Dorsey, who served two stints as CEO, is an interesting one given the duo’s history. The two executives, both big Bitcoin supporters, have been friendly for years.
With AP
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