The ASX closed on its day's lows in a decidedly risk-off session.
At the closing bell, the S&P/ASX 200 was 1.21 per cent or 85.10 points lower at 6961.80.
FuturesThe Dow Jones futures are pointing to a fall of 106 points.
The S&P 500 futures are pointing to a fall of 17.25 points.
The Nasdaq futures are pointing to a fall of 59.75 points.
The SPI futures are pointing to a fall of 89 points when the market next opens.
Best and worst performersThe best-performing sector was Energy, up 1.30 per cent. The worst-performing sector was Consumer Staples, down 3.80 per cent.
The best-performing stock in the S&P/ASX 200 was Altium
(ASX:ALU), closing 19.75 per cent higher at $35.84. It was followed by shares in Ansell
(ASX:ANN) and Allkem
(ASX:AKE).
The worst-performing stock in the S&P/ASX 200 was Endeavour
(ASX:EDV), closing 12.33 per cent lower at $7.25. It was followed by shares in EML Payments
(ASX:EML) and Telix Pharmaceuticals
(ASX:TLX).
Asian marketsMarkets are in risk-off mode ahead of Jackson Hole, with Japan, Korea, and Taiwan underperforming. The Nikkei is 1.06 per cent lower, the Hang Seng 0.48 per cent lower.
Greater China markets are mixed as mainland equities turned positive. The Shanghai Composite is 0.18 per cent higher.
Australia/New ZealandAustralian private sector activity shrinks for first time in seven months: The latest S&P Global/Markit composite PMI for Australia fell into contraction territory this month with a reading of 49.8 compared to July's 51.1. It was the first time since January that private sector output contracted, as inflation and interest rate hikes dragged on sales. However, input and selling price inflation eased to a six-month low and business sentiment remained in optimistic territory.
Australian welfare payments at pre-pandemic highs, driven by more older people on JobSeeker: Data from the Department of Social Services has shown the average duration of someone on JobSeeker and Youth Allowance payments has risen to 293 weeks, while the proportion of mature age recipients has climbed from 18 per cent in July 2012 to 29 per cent last month. The statistics are underlining calls for the government to lift workforce participation and get more mature age Australians to help fill labour shortages.
Australian enterprise agreement wage growth rises above 3 per cent: Enterprise agreement wage data by the Fair Work Commission shows average wage growth of 3.2 per cent in new collective agreements lodged for approval in the first two weeks of July, driven largely by non-union deals. Economists noted that while the sample is small, the data nonetheless shows wage growth is rising.
Concerns Australia's building industry facing wave of insolvencies: Building industry groups are warning of a wave of insolvencies stemming from soaring labour and material costs. ASIC data shows a low failure rate of 953 insolvencies in FY21, but with government support packages no longer in place the number of construction firms entering external administration has risen by more than a third in the past financial year.
Company newsPilbara Minerals
(ASX:PLS) has announced its FY22 results this morning. The mineral exploration company announced significant growth in its top and bottom lines, along with positive guidance posted over the long term. Revenue is up 577 per cent year-over-year (YoY) to $1.2 billion. Earnings before interest, taxes, depreciation and amortisation is $814.5 million, up from $21.4 million in FY21. Statutory net profit after tax is $561.8 million, up from a loss of $51.4 million loss in FY21. Pilbara has shipped 361,305 dry metric tonnes of spodumene concentrate. The company announced its performance for top and bottom lines was buoyed by strong demand for lithium and spodumene concentrate. Results were also accelerated by the performance of its Pilangoora lithium-tantalum operation in Western Australia. Other catalysts included the restart of the Ngungaju plant, capacity improvements for the Pilgan plant and more favourable international prices for lithium. The average price per dry metric tonne stood at approximately US$2,605 for the year. Shares in PLS closed up 3.15 per cent at $3.27.
American West Metals
(ASX:AW1) has announced a discovery at the Storm Copper Project on Somerset Island in Canada. Over 68 metres of copper sulphide mineralisation have been intersected. Managing Director Dave O’Neill has called the find “game-changing”. He comments that the discovery has “hugely positive” implications, since it is evidence of a major copper system. Shares are trading 36 per cent higher at 17 cents. Shares closed 16 per cent higher at 14.5 cents.
In further copper news, Culpeo Minerals
(ASX:CPO) has released mapping results from Lana Corina in Chile. Four priority drill targets have been identified, and the project’s footprint has increased to 500m by 400m. Managing Director Max Tuesley says the company is only just beginning to appreciate the size of the copper system. Shares are trading 12.5 per cent higher at 18 cents. Shares closed 3.13 per cent higher at 16.5 cents.
Strike Energy
(ASX:STX) has provided an update on the WE3 well at the West Erregulla gas field. The venture is a 50/50 joint project with partner Warrego Energy
(ASX:WGO). The gas has been measured to be high-quality and low in impurities, and is consistent with other West Erregulla wells. Shares in Strike Energy closed 3.7 per cent higher at 28 cents while shares in Warrego Energy closed up 3.6 per cent to 14 cents.
Commodities and the dollarGold is trading at US$1736.20 an ounce.
Iron ore is 0.9 per cent lower at US$99.70 a tonne.
Iron ore futures are pointing to a rise of 2.32 per cent.
Light crude is trading $0.49 higher at US$90.85 a barrel.
One Australian dollar is buying 68.61 US cents.
