ASX 200 down 0.2% by mid-week, IT suffers, energy gains most

Highlights 

• ASX 200 closed mid-week’s trade lower, turning south from yesterday’s rebound.
• Top gainers were utilities and energy sectors, while IT and consumer discretionary lost maximum.
• Globally, investors seem worried of US Fed’s aggressive monetary tightening against inflation.

ASX 200 closed today’s trade 0.2% lower, down to 6508.5 points. Major pulldown came from the consumer discretionary and technology sectors. Over the last five days, then Australian benchmark index has lost 1.40%. Over last one year the index has lost more than 11.35%.

How were sectors and indices placed?

On the ASX 200 index, sectors portrayed a mixed picture, with six of them ending higher. Utilities was the top gainer followed by energy sector. On the flipside, information technology and consumer discretionary sectors lost maximum.

The Volatility indicator- A-VIX was lower by 2.28% and the All-Ordinaries index moved along, down 0.28%. Large cap illustrative ASX 50 Index (XFL) lost 0.056%. Following suite, Midcap index ASX Midcap 50 (XMD) went down 0.157%. The ASX Small Ordinaries index (XSO) also closed 0.188% lower. 

Top gainers and losers

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 Notably, miner St Barbara Limited lost maximum, followed by technology stock Zip Co. Limited. Meanwhile, financial software provider Iress Limited was the top gainer, followed by energy infrastructure operator APA group.

Newsmakers of the day

• Crown Resorts (ASX:CWN) received a provisional licence to finally open its long-shut Barangaroo casino under regulator supervision. Given a need to observe the changes in operations and ensure changes are embedded in business, the licensing authority is to consider approval of Crown’s suitability until end of conditional gaming period, probably 18 months and two years.
• Humm Group (ASX:HUM) share price fell after the company’s majority directors agreed to step down after collapse the deal with Latitude Financial.

• Medibank (ASX:MPL) announced an additional AU$205 million payment to customers in Covid-19 permanent net claims savings to customers. It is to be a part of its broader Covid-19 financial support package and give back program. The premium increase deferral and cash give back is being funded from additional Covid-19 permanent net claims savings.
• Bluescope Steel (ASX:BSL) also grabbed some investor attention as it improved its earnings guidance for H2-22. BlueScope has therefore upgraded its previous earnings guidance.

On global front

Investors seem worried of US Fed’s aggressive monetary tightening against inflation. Other factors weighing on investor sentiments were possibilities of recession and the ongoing supply disruptions alongside Russia Ukraine war.

In the west, UK’s consumer price inflation hit an annual 9.1% in May. In the US, share market benchmark S&P 500 and Nasdaq 100 jumped as investors awaited Fed Chair Jerome Powell’s two-day testimony to Congress.  Investors are eager on hints of the Fed’s interest rate hike path.

Moving to Asian markets, Japan’s Nikkei moved up while South Korea’s KOSPI fell. Meanwhile Hong Kong’s Hang Seng was down. Following suite, China’s Shanghai Composite also stooped 0.09% while the Shenzhen Component sided further 0.17%.

Investors are awaiting data on US initial jobless claims due tomorrow and the US University of Michigan’s consumer sentiment report, due on Friday.

On commodities front 

• Oil prices dipped, as US President Biden pushed to bring down soaring fuel costs, including pressure on country's major energy firms. Both benchmarks Brent Crude and Western Texas Intermediate were placed low.
• In metals, iron ore markets remained volatile due to Chinese demand growth uncertainty.
• Gold was down in the morning in Asia as the US dollar firmed ahead of Fed Chair’s two-day testimony. Investors seek more clues on the US’s monetary policy moves.
• In other precious metals, silver price plunged, platinum was lower while palladium also slid 1.22%.