Both local benchmarks, including the S&P/ASX200 (INDEXASX: XJO) fell 1.2% on Thursday, as pressure continues to build from poor global economic data.
A surge in bond yields in the US, on the back of higher oil prices, has hit valuation and growth hopes once again, while further signs of slowing growth in China, hit the materials sector, which fell 3.2%.
Communications, led by Telstra Group Ltd (ASX: TLS) was the strongest performer, falling 0.2%. Takeover target Liontown Resources Ltd (ASX: LTR) gained another 9% amid news of a major block trade in shares of the lithium miner, with fingers pointed at Gina Rinehart’s group as a potential second bidder.
Liontown Resources Ltd (ASX: LTR)
The likes of BHP Group Ltd (ASX: BHP) and Perpetual Ltd (ASX: PPT) fell heavily after moving to ex-dividend, with the former down 5.2%.
This was exacerbated by a further weakening of iron ore prices as Chinese steel mills report growing losses.
China trade slows: Chevron strike on hold
All eyes remain on the Chinese economy, with the latest data showing a sharp slowing in foreign trade.
China exports fell 8.8% in August, while imports contracted by 7.3%; however, this was generally the summer break in most parts of the world.
Woodside Energy Group Ltd (ASX: WDS) fell another 1.5% as positive news spread in the oil and gas sector. Unions have now stepped back from potential strike action at Chevron Corporation’s (NYSE: CVX) massive Gorgon and Wheatstone projects in WA, avoiding disruption to some 7% of global LNG supply.
Global gas prices fell 10% as a result. Commodity trade remains central to Australia’s economic strength, with the trade surplus narrowing to $8 billion in July from $11.3 billion on the back of a jump in exports.
Ship builder Austal Ltd (ASX: ASB) offered some positive news, recording a US$91 million contract for the construction three new vessels for the US Navy.
Austal Ltd (ASX: ASB)
Disney, Google, & Apple fall
Concerns of a restarting of rate hikes sent most benchmarks lower into the close, with the Nasdaq Inc (NASDAQ: NDAQ) falling 0.9% and the S&P500 (INDEXSP: .INX) 0.3%, while the Dow Jones Industrial Average (INDEXDJX: .DJI) outperformed, adding 0.2% on a strong energy sector.
Jobless claims continue to reflect an incredibly resilient economy, but bond yields are hitting growth and valuation hopes.
Apple Inc (NASDAQ: AAPL) shares fell by close to 4% after the Chinese government announced a ban on using iPhones for work purposes by official members.
Alphabet Inc Class A (NASDAQ: GOOGL) had a similar experience, with shares weakening after the company indicated that they would require political parties to disclose AI-created content in their ads and publications.
General Motors Co (NYSE: GM) remains at risk of a significant disruption, with the threat of a labour strike in search of 10% wage increases pushing shares 2% lower. CPI results lie ahead.
