ASX down 1.35% in anticipation of labour market figures

Market Reports

by Peter Milios

The big four Australian banks are projecting various outcomes for the labour market: Commonwealth Bank (CBA) expects a 25,000 job gain with a higher unemployment rate of 3.8%, while National Australia Bank (NAB) forecasts a 30,000-job increase with unemployment at 3.7%. ANZ predicts a 20,000-job rise and steady unemployment at 3.7%, and Westpac anticipates a 20,000-job increase with no change in the unemployment rate, also at 3.7%.

The S&P/ASX 200 is 1.35 per cent lower at 6,981.90.

The SPI futures are pointing to a fall of 97 points.

Best and worst performers

All sectors are in the red. The sector with the fewest losses is Energy, down 0.42 per cent. The worst-performing sector is Materials, down 1.75 per cent.

The best-performing large cap is Northern Star Resources (ASX:NST), trading 3.14 per cent higher at $11.84 It is followed by shares in ResMed (ASX:RMD) and Washington H. Soul Pattinson and Company (ASX:SOL).

The worst-performing large cap is Mercury NZ (ASX:MCY), trading 4.8 per cent lower at $5.55. It is followed by shares in Mineral Resources (ASX:MIN) and Allkem (ASX:AKE).

Asian news

Asia-Pacific markets fell across the board as Japan saw a surprise trade surplus in September and as Australia awaits its unemployment data for September.

This also mirrors moves on Wall Street as U.S. Treasury yields jumped to multiyear highs, with the 10-year Treasury yield breaking above 4.9% for the first time since 2007.

Meanwhile, the average rate on the 30-year fixed mortgage rate hit 8%, the highest level since 2000.

Japan’s Nikkei 225 also tumbled 1.42%, while the Topix saw a smaller loss of 1.18% after the trade data was released.

South Korea’s Kospi was down 1.62%, leading losses in Asia among benchmark indexes, with the Kosdaq plunging 2.22%. The country’s central bank is expected to hold its benchmark lending rates today at 3.5%, according to a Reuters poll of economists.

Futures for Hong Kong’s Hang Seng index stood at 17,569, extending losses from Wednesday and pointing to a weaker open compared with the HSI’s close of 17,732.52.

Company news

Terrain Minerals (ASX:TMX) announced that Rare Earth Element (REE) mineralisation has been intersected across the Lort River project area. In-demand permanent magnetic metals of Neodymium (Nd) and Praseodymium (Pr) were encountered during the drill program and run as high as 43% of the Total Rare Earth Oxide grade. Shares are trading flat at 0.4 cents.

Superior Resources Limited (ASX:SPQ) has commenced the Phase 2 drilling program at the Company’s flagship Greenvale Project. In response, Superior’s Managing Director, Peter Hwang commented, “We are naturally, very excited to see the rig turning again at Bottletree and we have a program that takes us to the south of last year’s line of holes to target a high priority interpreted central porphyry core.” Shares are trading 5.26 per cent higher at 2 cents.

Strickland Metals’ (ASX:STK) has confirmed large gold target at their Yandal Gold Project. In response,Chief Executive Officer, Andrew Bray, said, “ The results of both efforts suggest we have clipped the outer edge of a substantial, concealed gold deposit, which is now eminently suitable for RC and diamond drilling. An RC rig is scheduled to arrive next week and the diamond rig will arrive the following week.” Shares are trading 4.71 per cent higher at 8.9 cents.

Commodities and the dollar

Gold is trading at US$1963.70 an ounce.

Iron ore is 1.7 per cent lower at US$118.35 a tonne.

Iron ore futures are pointing to a 0.9 per cent fall.

One Australian dollar is buying 63.26 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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