The S&P/ASX 200 (INDEXASX: XJO) and All Ordinaries (ASX: XAO) snapped a four-day winning streak on Wednesday, posting a negative return of 0.9 per cent as the end of the financial year beckons.
Is the ASX 200 bouncing back?
The chart above shows the performance of an ETF that trades the ASX 200, the iShares S&P/ASX 200 ETF (ASX: IOZ). Learn more about ASX: IOZ.
Financials higher
Only three sectors were high, led by financials, which gained 0.3 per cent on the back of a strong day for National Australia Bank (ASX: NAB) and Westpac Banking Corp (ASX: WBC), which both finished 1 per cent higher.
On the negative side were the real estate, technology and communication sectors with the former falling 3.8 per cent after research flagged potential downgrades on the back of higher hedging costs and bond yield impacts on valuations.
Tyro Payments (ASX: TYR) lost 16.7 per cent after CEO Robert Cooke announced he would be departing to join Star Entertainment (ASX: SGR), the casino operator. SGR finished 3.3 per cent higher with Cooke having spent time at Tatts Group before Tyro.
There was positive news for the economy in the form of a better-than-expected 0.9 per cent jump in retail sales in May. This reflected a 10 per cent increase on 2021 on the back of greater growth in department stores, which ultimately protected Vicinity Centres (ASX: VCX) from the broader weakness in the sector.
Pilbara upgrades & Liontown deals with Ford
Lithium miner Liontown Resources Ltd (ASX: LTR) rallied after announcing a formal offtake agreement with Ford that relates to the supply of 150,000 dry metric tonnes for its WA project over five years.
Shares in Pilbara (ASX: PLS) fell 3.8 per cent despite management reporting it had lifted production by 54 per cent during the quarter and upgraded prior guidance. Cash on hand is likely to hit $850 million on the back of strong lithium pricing.
Neobank Volt is set to give back its banking license and more than $100 million in customer deposits after failing to find more capital to fund its operations. This is despite reportedly having one of the best mortgage assessment platform technologies in the market.
Almond grower Select Harvest (ASX: SHV) fell 4.9 per cent on reports that the 2023 crop could be impacted by the emergence of a mite that may be dangerous to the honey bees used for pollination. This could impact up to 44 per cent of their orchards in NSW and Queensland.
Dow rallies despite threat of recession
Presenting to a congregation of central banks in Europe, Federal Reserve Chair Jerome Powell highlighted the significant challenge facing the US as they seek to return to 2 per cent inflation without sending unemployment higher or the economy into recession.
Powell stated “there is no guarantee we can do that”, with consumers clearly already feeling the pinch as confidence fell to a near ten year low.
Markets now have growing concerns about earnings downgrades with the FAANG stocks pulling the Nasdaq down to a flat finish despite being 1 per cent higher during the session. The Dow Jones gained 0.3 per cent while the S&P500 fell 0.1 per cent.
Shares in Bed Bath & Beyond (NYSE: BBBY) fell by more than 20 per cent after management reported a weak fiscal year result with sales falling close to 25 per cent and resulting in a US$357 million loss. Pinterest (NYSE:PIN) also fell 1.4 per cent after announcing the CEO was stepping down to be replaced by someone from Google.
