ASX plunges following on from Wall St: ASX closed 2.9% lower

Market Reports

by Rachael Jones

The Australian share market saw the biggest drop of the year closing 2.9 per cent lower today taking the benchmark S&P200 back to where it traded in early June. It comes as Wall St saw its biggest drop of 2019 as the bond market reared a recession indicator. With the ten year treasury note falling below the two year rate. As for the sectors, REITS lost the least today and Energy came bottom of the list.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 188 points lower to finish at 6,408.

Futures market

Dow futures are suggesting a rise of 110 points.
S&P 500 futures are eyeing a rise of 15 points.
The Nasdaq futures are eyeing a lift of 37 points.
And the ASX200 futures are eyeing a 2.7 per cent fall tomorrow morning.

Economic news

Labour force July

Trend unemployment rate increased in July 2019 to 5.3 per cent, from 5.2 per cent in June.

The average weekly ordinary time earnings for full-time adults in Australia in May 2019 was $1,634 on trend terms.

Average full-time earnings increased by $27 - that's 1.7 per cent over the previous six months and by $48 over the year, 3.0 per cent.

Company news

QBE Insurance Group (ASX:QBE) today announced a 1H19 statutory net profit after tax of $463 million, up 29 per cent from $358 million in the prior period. QBE Group CEO, Pat Regan says these were partly offset by an anticipated increase in the net cost of large individual risk and catastrophe claims following the successful renegotiation of the Group’s reinsurance program. Shares in QBE Insurance Group (ASX:QBE) closed 1.1 per cent lower at $11.95.

Telstra (ASX:TLS) released their full year results for financial year 2019, showing their net profit after tax decreased 39.6 per cent to $2.1 billion. EBITDA decreased 21.7 per cent to $8.0 billion. This was in line with expectations due to the impact of the nbn.

Health supplement company Blackmores (ASX:BKL) reports their NPAT is $53 million, down 24 per cent on the prior year. They achieved domestic sales growth in all markets except New Zealand, which was down 1 per cent on the prior year.

Treasury Wine Estates (ASX:TWE) has lifted its full year dividend by 19 per cent to 38 cents per share on the prior corresponding period after growth in Asian sales. NPAT is up $419.5 million, that's up 16 per cent on the prior corresponding period. Asia reported 43 per cent EBITS growth to $293.5 million.

Sydney Airport (ASX:SYD) cut costs and reduced staff numbers after its half year results show a 90 per cent drop in profit after income tax to $17.3 million.

Best and worst performers 

All the sectors were in the red.

The best performing sector was REITs losing 1.7 per cent while the worst performing sector was Energy, shedding 5.3per cent.

The best performing stock in the S&P/ASX 200 was Super Retail Group (ASX:SUL), rising 4.2 per cent to close at $9.04. Shares in Treasury Wine Estates (ASX:TWE) and Northern Star Resources (ASX:NST) followed higher.

The worst performing stock in the S&P/ASX 200 was Orora (ASX:ORA), dropping 15.9 per cent to close at $2.69. Shares in Blackmores (ASX:BKL) and Cleanaway Waste Management (ASX:CWY) followed lower.

Asian markets

Japan’s Nikkei has lost 1.4 per cent, Hong Kong’s Hang Seng has added 0.02 per cent and the Shanghai Composite has lost 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,518 an ounce.
Iron ore price rose 1.6 per cent to US$90.72
Iron ore futures are pointing to a fall of 2.8 per cent.
Light crude is US$1.67 down at US$54.91 a barrel.
One Australian dollar is buying 67.84 US cents.