The S&P/ASX 200 (ASX: XJO) looked to be moving into correction territory on Tuesday morning, opening broadly lower and continuing the weak global trend. The market fell as much as 0.3% before finishing the same amount higher.
Concern continues to grow about the outlook for the global economy but most importantly, the perceived increase in geopolitical risk following Australia’s deal with the US and UK for nuclear-powered submarines.
Evergrande’s move towards default appears to be garnering the attention of an otherwise directionless market.
APA makes a play for AusNet
It was all about AusNet Services Ltd (ASX: AST) though, with the company receiving a second offer, this time from pipeline owner APA Group (ASX: APA).
The deal is an increase on the existing $2.50 offer, moving to $2.60 and a valuation exceeding $10 billion. The AusNet share price moved another 10% higher to $2.59, but APA shares fell 4.7%.
AusNet share price chart
Sticking with infrastructure, Atlas Arteria Group (ASX: ALX) jumped 2.1% after reinstating its dividend at a rate of 15.5 cents per share. This comes as the group’s US and European toll roads finally show signs of improvement.
Telstra & ResMed outperform
Every sector barring financials finished the day to the positive, with the banking sector down 0.4% but telecommunications and tech leading the way with 1.1% and 1.7% gains.
Telstra Corporation Ltd (ASX: TLS) continues to rally following its strong investor day last week at which it highlighted an aggressive growth strategy, with shares 1.3% higher.
ResMed CDI (ASX: RMD) is also benefitting from market share gains following a competitor’s recall, with investors returning to defensive healthcare companies.
BHP & Rio Tinto stem the bleeding
Iron ore prices appear to have bottomed, hitting US$90 per tonne on the back of steel production curbs ahead of the Winter Olympics and summer season.
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) added 0.6% and 0.5%, respectively, with prices now back around February 2021 levels following an increase early part of the year.
Consumer confidence has also moved slightly higher in August, defying the extended lockdowns, but remain well below the long-term average.
ASX 200 today
The ASX 200 is set to edge lower when the market opens on Wednesday, following a mixed lead from US markets overnight. To find out more, check out our US stock market report.
