The Australian sharemarket fell on Thursday, with bank stocks particularly hard-hit, after warnings from some of their US and Japanese peers over their bad debt exposure to real estate.
The S&P/ASX 200 (INDEXASX: XJO) Index could not hold on to yesterday’s record close, dropping 92.5 points, or 1.2 per cent, to 7,588.2 points, with all 11 industry sub-indices losing ground.
The financial sector was the worst performer, down 1.8 per cent, led lower by the big four banks. Commonwealth Bank of Australia (ASX: CBA) sank $3.43, or 2.9 per cent, to $114.10; National Australia Bank Ltd (ASX: NAB) slid 70 cents, or 2.2 per cent, to $31.90; Westpac Banking Corp (ASX: WBC) receded 41 cents, or 1.7 per cent to $23.77; and ANZ Group Holdings Ltd (ASX: ANZ) came off 28 cents, or 1 per cent, to $26.92.
CBA share price
Banks and financials were under pressure as worries about US commercial property heightened. US lender New York Community Bank plunged 37 per cent on Wednesday night, after it warned of rising bad debts across its portfolio of commercial real estate loans. And Japanese bank Aozora Bank Ltd (TYO: 8304) was hammered 21 per cent in Tokyo after telling investors it has rising bad debt exposure.
The real estate sector index retreated 1.7 per cent, led by Stockland Corporation Ltd (ASX: SGP), which lost 9 cents, or 2 per cent, to $4.47, and Dexus (ASX: DXS), which was down 17 cents, or 2.2 per cent, to $7.63.
Afterpay’s owner, Block Inc (NYSE: SQ), dropped $2.35, or 2.3 per cent, to $100.50, as it embarks on major job cuts.
Biotech heavyweight Csl LTD (ASX: CSL) retreated $4.94, or 1.6 per cent, to $296.76. Telstra Group Ltd (ASX: TLS) was down 1 cent, at $4.03.
Miners join downward trend
Among the big miners, BHP Group Ltd (ASX: BHP) lost 16 cents, or 0.3 per cent, to $47.11; Rio Tinto Ltd (ASX: RIO) lost 63 cents, or 0.5 per cent, to $132.29; and Fortescue Ltd (ASX: FMG) receded 38 cents, or 1.3 per cent, to $29.50.
BHP share price
In coal, Whitehaven Coal Ltd (ASX: WHC) lost 12 cents, or 1.4 per cent, to $8.31; New Hope Corporation Ltd (ASX: NHC) slipped 7 cents, or 1.3 per cent, to $5.33; Stanmore Resources Ltd (ASX: SMR) was down 4 cents, or 1 per cent, to $3.91; Coronado Global Resources Inc (ASX: CRN) retreated 5.5 cents, or 3.4 per cent, to $1.585; and Yancoal Australia Ltd (ASX: YAL) eased 1 cent, or 0.2 per cent, to $5.98.
In gold, Northern Star Resources Ltd (ASX: NST) was up 22 cents, or 1.7 per cent, to $13.37, and Newmont Corporation CDI (ASX: NEM) put on 66 cents, or 1.3 per cent, to $53.38; but there was not much joy elsewhere in the gold sector, with Gold Road Resources Ltd (ASX: GOR) slipping 5 cents, or 3.3 per cent, to $1.47; De Grey Mining Limited (ASX: DEG) closing 2.5 cents, or 2 per cent, lower at $1.20; Evolution Mining Ltd (ASX: EVN) easing 4 cents, or 1.3 per cent, to $3.17; Perseus Mining Ltd (ASX: PRU) giving up 4 cents, or 2.2 per cent, to $1.765; and Capricorn Metals Ltd (ASX: CMM) down 9 cents, or 2 per cent, to $4.50.
Northern Star Resources share price
In lithium, producer Arcadium Lithium CDI (ASX: LTM) slid 27 cents, or 3.5 per cent, to $7.51; fellow producer Pilbara Minerals Ltd (ASX: PLS) was down 9 cents, or 2.5 per cent, to $3.46; Mineral Resources Ltd (ASX: MIN), which mines iron ore and lithium, retreated $1.57, or 2.6 per cent, to $58.38; and IGO Ltd (ASX: IGO), which produces nickel as well as lithium, walked back 32 cents, or 4.2 per cent, to $7.24, after informing the market that rival miner South32 Ltd (ASX: S32) has issued it a legal claim demanding $122.1 million in owed royalties. South32 closed 6 cents or 1.8 per cent, lower at $3.29. Lithium project developer Liontown Resources Ltd (ASX: LTR) lost 4 cents, or 3.9 per cent, to 99 cents.
In energy, Woodside Energy Group Ltd (ASX: WDS) lost 16 cents, or 0.5 per cent, to $32.25; Santos Ltd (ASX: STO) weakened 9 cents, or 1.2 per cent, to $7.76; and Beach Energy Ltd (ASX: BPT) added 1 cent, or 0.6 per cent, to $1.67.
Ferrari, Facebook fanging it
In Europe, Ferrari NV (BIT: RACE) shares surged 9.2 per cent after the carmaker beat analysts’ forecasts and posted another year of record profits. Ferrari forecast another strong year ahead.
In the US, Meta Platforms Inc (NASDAQ: META) jumped 15 per cent after profit tripled, the company announced its first-ever dividend, and authorised a US$50 billion share buyback. The market focused more on the result than the grilling Meta CEO Mark Zuckerberg copped at a US Senate hearing, during which he apologised to families who say their children had been harmed by social media.
Amazon.com Inc (NASDAQ: AMZN) rose 2.6 per cent as it reported better-than-expected quarterly results, as revenue jumped 14 per cent.
Amazon share price
The broad S&P 500 (INDEXSP: .INX) index gained 60.54 points, or 1.3 per cent, to 4,906.19; the 30-stock Dow Jones Industrial Average (INDEXDJX: .DJI) advanced 369.54 points, or 1 per cent, to 38,519.84; and the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) Index firmed 197.63 points, or 1.3 per cent, to 15,361.64.
On the bond market, the US 10-year yield gave up 4.1 basis points, to 3.878 per cent, while the 2-year yield was slightly stronger, at 4.213 per cent.
Across the Atlantic, the Bank of England’s monetary policy committee maintained its policy settings, leaving the base rate at 5.25 per cent.
Gold gained US$14.86, or 0.7 per cent, to US$2,054.74 an ounce. The global benchmark Brent crude oil grade retreated US$1.65, or 2 per cent, to US$78.90 a barrel, and West Texas Intermediate oil was US$1.90 weaker, down 2.5 per cent to US$73.95 a barrel.
The Australian dollar is buying 65.7 US cents this morning, up from 65.38 US cents at the ASX close on Thursday.
