ASX falls 0.28% at noon to five-week intraday low

Australian shares experienced a sharp intraday fall, with the S&P/ASX 200 index dropping as low as 0.8 per cent to a five-week intraday low of 7147 points. However, the market mostly recovered after US futures also bounced back. Despite this recovery, at noon, the S&P/ASX 200 is 0.28 per cent lower at 7,177.10, heading for its lowest close in five weeks. The disappointing results from NAB (ASX:NAB) had initially caused sharp falls in the banks' shares, but they later trimmed some of the losses.

PacWest Bancorp shares have fallen over 50 per cent in after hours trading as the regional bank is reportedly considering strategic options, including a potential sale. This news caused a 0.6 per cent drop in S&P 500 futures.

In the local market, seven of the 11 sectors are showing gains.

Major banks have partially recovered, but are still down between 2.2-6.2 per cent, with NAB showing the weakest performance.

Best and worst performers

The best-performing sector is REITs, up 1.19 per cent. The worst-performing sector is Financials, down 2.26 per cent.

The best-performing large cap is Evolution Mining (ASX:EVN), trading 5.82 per cent higher at $3.82. It is followed by shares in Northern Star Resources (ASX:NST) and Atlas Arteria (ASX:ALX).

The worst-performing large cap is National Australia Bank (ASX:NAB), trading 5.92 per cent lower at $26.86. It is followed by shares in Mineral Resources (ASX:MIN) and Westpac Banking Corporation (ASX:WBC).

Asian news

Asia-Pacific markets mostly declined after the US Federal Reserve hiked rates by 25 basis points as widely expected, bringing the federal funds rate range to 5 per cent-5.25 per cent -- its highest level since August 2007.

However, the Fed did hint at a possible pause to hikes. The post-meeting statement omitted a sentence present in the previous statement saying that “the Committee anticipates that some additional policy firming may be appropriate” for the Fed to achieve its 2 per cent inflation goal.

South Korea’s Kospi was 0.44 per cent down, while the Kosdaq lost 0.24 per cent.

Mainland Chinese markets were also all down after returning from Labor Day holiday, with the Shenzhen Component down 0.26 per cent and the Shanghai Composite down 0.53 per cent.

Hong Kong’s Hang Seng index bucked the regional sell-iff, gaining 0.6 per cent and the Hang Seng Tech index rose 1.43 per cent.

Company news

Vulcan Energy Resources (ASX:VUL) announced the launch of an underwritten single tranche placement to sophisticated, experienced, professional and institutional investors to raise $109m. Proceeds from the Placement, together with existing cash, will be used to progress Vulcan’s integrated renewable energy and lithium project execution strategy. Shares are on a trading halt, last traded $6.16.

Caspin Resources (ASX:CPN) announced a groundbreaking rare earth discovery, at their Mount Squires project in WA. CEO Greg Miles, commented “An important aspect of these results is that it highlights the potential for rare earth mineralisation throughout the project. We are barely past the start line on assessing this opportunity.” Shares are trading 32.2 per cent higher at 39 cents.

Tyranna Resources (ASX:TYX) has signed an agreement with Sinomine Resource Group to secure funding and offtake for in excess of $31m. Joe Graziano, the Chairman of Tyranna commented, “the transaction will secure funding to complete an extensive exploration program at the Namibe Lithium Project which will assist in defining the scale and size of this project for the future development of potentially significant resources.” Shares are trading 12 per cent higher at 2.8 cents.

Commodities and the dollar

Gold is trading at US2050.00 an ounce.
One Australian dollar is buying 66.74 US cents.