RBA remains dovish: Aus shares 0.7% lower at noon

Market Reports

by Lauren Evans

The Australian share market fell at the open and remained in negative territory. At noon, the ASX is 0.7 per cent or 56.3 points lower at 7526.2. The SPI futures are pointing to a fall of 40 points.

Amid a mixed reaction from earnings results, major Banks, Miners and Energy stocks are down. 

Mining giant BHP (ASX:BHP) is down 1.6 per cent, ahead of its earnings results set to release this afternoon. Rio Tinto (ASX:RIO) is down 0.7 per cent and Fortescue Metals (ASX:FMG) is down 0.5 per cent. 

Onto banks, Commonwealth (ASX:CBA) is down 2.7 per cent, Westpac (ASX:WBC) is down 1.5 per cent, ANZ (ASX:ANZ) is down 0.8 per cent and NAB (ASX:NAB) is down 0.5 per cent. 

Oil and gas producer Woodside Petroleum (ASX:WPL) is down 1.6 per cent, ahead of its earnings results set to release this afternoon. Santos (ASX:STO) is down 1.4 per cent following its half year results released this morning and Oil Search (ASX:OSH) is down 1.3 per cent.

In headlines, Real Estate companies Domain and Dexus released their FY21 results this morning. Domain (ASX:DHG) is up 1.7 per cen and Dexus (ASX:DXS) is down 0.9 per cent.

Magellan Financial Group (ASX:MFG) is trading 8.7 per cent lower as the worst performing stock, following its FY21 results

NSW recorded 452 new Covid-19 cases, Victoria recorded 24 new cases and Queensland recorded 1 new case.
 
Local economic news 

The Reserve Bank of Australia have released their meeting minutes which from their 3 August meeting keeping to their dovish tone in response to the pandemic.

As per the minutes, the RBA's bond purchase program will "continue to be reviewed in light of economic conditions and the health situation, and their implications for the expected progress towards full employment and the inflation target".

“The bond purchase program will continue to be reviewed in light of economic conditions and the health situation”.

“The Board would be prepared to act in response to further bad news on the health front should that lead to a more significant setback for the economic recovery”.

ANZ-Roy Morgan consumer confidence increased by 2.5 points to 101.1 this week after the short lockdown in South-East Queensland ended but the lockdown in Melbourne was extended and late on Saturday the entire State of NSW was put into lockdown.

Of the mainland States, consumer confidence is now lowest in NSW which is the only one of these States to have consumer confidence in negative territory below the neutral level of 100. Consumer confidence is second lowest in Victoria while the end of lockdown in south-east Queensland has seen the jump into positive territory now with the highest consumer confidence of any State.

Consumer confidence increased this week as people became more confident about their personal financial situations both compared to a year ago and looking forward over the next 12 months. There was also an increase in those saying now is a ‘good time to buy’ major household items.
 
Australian Bureau of Statistics released their overseas arrivals and departures figures for June. Total arrivals reached 102,480, a monthly decrease of 12,040 trips. Total departures reached 98,350, a monthly decrease of 8,890 trips.

Company news 

Electricity company Mercury NZ (ASX:MCY), reported its EBITDAF of $463 million for  FY21, down $27 million from FY20.

Bailador Technology Investments (ASX:BTI) released their full year results. Net tangible asset (NTA) per share (pre-tax) was up 23 per cent over prior year to $1.53.

Real Estate company Domain (ASX:DHG) reached net profit of $37.9 million in FY21, up 66 per cent from the prior year.

Dexus Property Group (ASX:DXS) recorded net profit after tax of $1,138.4 million in FY21, up 17 per cent from the prior year.

Best and worst performers

The best-performing sector is Communication Services, up 0.2 per cent. The worst-performing sector is Financials, down 1.3 per cent.

The best-performing stock in the S&P/ASX 200 is Steadfast Group (ASX:SDF), trading 3.8 per cent higher at $4.87. It is followed by shares in Fisher & Paykel Healthcare (ASX:FPH) and Downer EDI (ASX:DOW).

The worst-performing stock in the S&P/ASX 200 is Magellan Financial Group (ASX:MFG), trading 8.7 per cent lower at $46.94. It is followed by shares in Breville Group (ASX:BRG) and Lynas Rare Earths (ASX:LYC).

Commodities and the dollar

Gold is trading at US$1785.72 an ounce.
Iron ore is 0.9 per cent higher at US$163.52 a ton.
Iron ore futures are pointing to a rise of 0.35 per cent.
One Australian dollar is buying 73.11 US cents.


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