ASX slides 0.47% amidst Fed meeting and China property concerns

Market Reports

by Peter Milios

On Tuesday, at the closing bell, the S&P/ASX 200 was 0.47 per cent lower at 7,196.60, in anticipation of the US Federal Reserve's policy meeting.

The meeting is expected to reiterate the message of keeping interest rates higher for an extended period. The All Ords index also declined by 0.5%. Major banks saw a decrease in their stock prices, and mining companies faced a slump due to concerns about China's worsening property crisis, which caused a retreat in iron ore prices from their six-month highs.

Futures

The Dow Jones futures are pointing to a fall of 27 points.

The S&P 500 futures are pointing to a fall of 4.75 points.

The Nasdaq futures are pointing to a fall of 31.25 points.

The SPI futures are down 34 points.

Best and worst performers

The best-performing sector was Energy, up 0.21 per cent. The worst-performing sector was Materials, down 0.77 per cent.

The best-performing large cap was BlueScope Steel (ASX:BSL), closing 2.82 per cent higher at $19.35. It was followed by shares in Yancoal Australia (ASX:YAL) and New Hope Corporation (ASX:NHC).

The worst-performing large cap was Lynas Rare Earths (ASX:LYC), closing 2.47 per cent lower at $7.12. It was followed by shares in Endeavour Group (ASX:EDV) and Pilbara Minerals (ASX:PLS).

Asian markets

Japan's Nikkei has lost 0.87 per cent.

Hong Kong's Hang Seng has lost 0.02 per cent.

China's Shanghai Composite has lost 0.05 per cent.

Company news

BluGlass (ASX:BLG) has received a custom laser order from a repeat customer. The customer is a leading USA-based research laboratory, who will use BluGlass’ lasers within high-powered scientific applications. In response, BluGlass CEO Jim Haden said, “We are very encouraged to receive this order from an existing laser project customer, as we develop our track-record and progress to larger volume and recurring orders.” Shares closed 7.14 per cent lower at 3.9 cents.

Codrus Minerals (ASX:CDR) has announced that widespread clay-hosted REE mineralisation has been intersected in the Company’s first AC drill program at their Karloning REE Project in WA. In response, Managing Director, Shannan Bamforth, said, “The assays have confirmed what we wanted to see – that the shallow mineralization has both scale and grade, substantially upgrading the potential of the Karloning Project.” Shares are trading 31.43 per cent higher at 9.2 cents.

Kula Gold (ASX:KGD) announced that the first hole at the Mustang Lithium Prospect, within the Kirup Lithium Project has been successful in intersecting pegmatites over four intervals. In response, Chief Executive Officer Ric Dawson commented, “the combination of some very encouraging outcrop, geochemistry and geophysics warrants subsurface drilling.” Shares closed 7.14 per cent higher at 1.5 cents.

Commodities and the dollar

Gold is trading at US$1,951.80 an ounce.

Iron ore is 0.9 per cent lower at US$124.45 a tonne.

Iron ore futures are pointing to a 0 per cent rise/fall.

Light crude is trading $0.98 higher at US$92.46 a barrel.

One Australian dollar is buying 64.31 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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