US data points to no potential Fed cut in July: Aus shares lose 1.2%

Market Reports

by Jessica Amir

The Australian share market erased the last two trading sessions of gains falling 1.2 per cent, ending its five straight sessions of gains, after it closed near the all-time high last week.

It comes as US stocks retreated from their record closes on the back of a stronger than expected jobs (non-farm payrolls). So now global investors are reassessing what the Federal Reserve will do at its next meeting, with the fresh data reducing chances of a Fed rate cut at the end of July. US government bonds surged, gold rallied, and the US dollar neared a three-week high earlier.

At the closing bell the S&P/ASX 200 index closed 1.2 per cent or 79 points lower to finish at 6,672.

Futures market

Dow futures are suggesting a fall of 81 points.
S&P 500 futures are eyeing a dip of 9 points.
The Nasdaq futures are eyeing a fall of 34 points.
And the ASX200 futures are eyeing a 72 point fall

Company news

Huon Aquaculture Group (ASX:HUO) now has the ability to grow larger salmon on land after its production trials at its Salmon Nursery returned the biggest on-land hatchery-grown salmon in the southern hemisphere. The salmon are being transferred to sea, where they’ll need 30 to 40 per cent less time to grow to harvest weights (5-6 kgs). As a result of the new production trial, it will cut the time that fish are at sea from 14 months to 9 to 10 months. It will also boost its production capability and drop the risk of mortality. Huon Aquaculture Group (ASX:HUO) shares closed 0.9 per cent higher at $4.74.

Evans Dixon (ASX:ED1) has announced the Peter Anderson has been hired as its new Chief Executive Officer. He has been an independent non-executive director since April 2019. David Evans had been acting as interim CEO and will now return to position as Executive Chairman.

Vista Group International (ASX:VGL) has appointed finance exec, Matthew Cawte as its new Group Chief Financial Officer. He previously worked as CFO at software as a service company Biomatters and for NZ listed, Wellington Drive Technologies (NZX:WDT)

Breast cancer detection company, Volpara (ASX:VHT) entered into an agreement to sell ScreenPoint Medical’s computer-aided detection software. It could generate US$10 million from breast imaging clinics, while also optimising early detection, reducing radiologist liability and risk and cutting screen costs.

Best and worst performers of the day

The best performing sector was S&P/ASX Consumer Discretionary losing 0.3 per cent while the worst performing sector was S&P/ASX A-REIT, shedding 2.4 per cent, followed by Utilities losing 2.1 per cent.

The best performing stock in the S&P/ASX 200 was Speedcast International (ASX:SDA), rising 6.4 per cent to close at $1.92. Shares in Costa Group Holdings Limited (ASX:CGC) and Clinuvel Pharmaceuticals Limited (ASX:CUV) followed higher.

The worst performing stock in the S&P/ASX 200 was G8 Education Limited (ASX:GEM), dropping 9.8 per cent to close at $2.77. Shares in Eclipx Group (ASX:ECX) and HUB24 (ASX:HUB) followed lower.

Asian markets

Japan’s Nikkei has lost 1 per cent, Hong Kong’s Hang Seng has shed 1.7 per cent and the Shanghai Composite has lost 2.4 per cent.

Commodities and the dollar

Gold is trading at US$1,403 an ounce.
Iron ore price fell 5.9 per cent to US$114.81
Iron ore futures are pointing to a rise of 1.2 per cent.
Light crude is US$0.60 up at US$57.51 a barrel.
One Australian dollar is buying 69.86 US cents.

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