ASX LIVE | ASX to Fall; Aussie dollar drops, Westgold posts guidance, Uber Makes its First Profit, US Credit Downgraded

ASX 200 closed down 1.29% at 7,354.7 today on a tough day trading, with all 11 sectors down significantly.

Mining stocks tracked iron prices down, tumbling 1%, while Gold stocks also took a hit, with Northern Star Resources down 2.8% and Newcrest down 0.9%.

• $AUD down -1.28% at 65.74 US cents
• ASX futures down -1.40% to 7,295.5
• S&P 500 down -0.27%
• NASDAQ down -0.43%
• DOW up +0.20%
• FTSE down -0.43%
• STOXX down -0.57%
• SSE down -1.01%
• Bitcoin up +2.52% to $US 29,644
• Spot gold down -0.20% to $US 1,948.66
• Iron ore down -3.68% to $US 108.32
• Brent Crude up +0.98% to $US 85.74pb

ASX 200 Sector Worst Performance

• Utilities down -2.18%
• Real Estate down -1.95%
• Financials down -1.77%

ASX 200 best individual performers:

• Pro Medicus [ASX:PME], up 3.33%
• PSC Insurance [ASX:PSI], up 2.50%
• Breville Group [ASX:BRG], up 1.63%
• Reliance Worldwide Corporation [ASX:RWC], up 1.44%
• Air New Zealand [ASX:AIZ], up 1.39%

ASX 200 worst performers:

• AGL Energy [ASX:AGL], down 4.81%
• Capricorn Metals [ASX:CMM], down 4.73%
• Champion Iron [ASX:CIA], down 4.61%
• Deterra Royalties [ASX:DRR], down 4.30%
• TELIX Pharmaceuticals [ASX:SMR], down 4.02%

All figures shown are from 4:20pm AEST

ASX 200 closed down 1.29% at 7,354.7 today on a tough day trading, with all 11 sectors down significantly.

Mining stocks tracked iron prices down, tumbling 1%, while Gold stocks also took a hit, with Northern Star Resources down 2.8% and Newcrest down 0.9%.

• $AUD down -1.28% at 65.74 US cents
• ASX futures down -1.40% to 7,295.5
• S&P 500 down -0.27%
• NASDAQ down -0.43%
• DOW up +0.20%
• FTSE down -0.43%
• STOXX down -0.57%
• SSE down -1.01%
• Bitcoin up +2.52% to $US 29,644
• Spot gold down -0.20% to $US 1,948.66
• Iron ore down -3.68% to $US 108.32
• Brent Crude up +0.98% to $US 85.74pb

ASX 200 Sector Worst Performance

• Utilities down -2.18%
• Real Estate down -1.95%
• Financials down -1.77%

ASX 200 best individual performers:

• Pro Medicus [ASX:PME], up 3.33%
• PSC Insurance [ASX:PSI], up 2.50%
• Breville Group [ASX:BRG], up 1.63%
• Reliance Worldwide Corporation [ASX:RWC], up 1.44%
• Air New Zealand [ASX:AIZ], up 1.39%

ASX 200 worst performers:

• AGL Energy [ASX:AGL], down 4.81%
• Capricorn Metals [ASX:CMM], down 4.73%
• Champion Iron [ASX:CIA], down 4.61%
• Deterra Royalties [ASX:DRR], down 4.30%
• TELIX Pharmaceuticals [ASX:SMR], down 4.02%

All figures shown are from 4:20pm AEST

Westgold Resources [ASX:WGX] shares fell by 9.80% today, trading at $1.54, after releasing a modest production guidance for FY24.

Source: Westgold Resources

With guidance only showing a small increase in production, many investors were disappointed at the results, despite the lower All-in Sustaining Costs (AISC) of $1800-2000/oz for FY24.

Westgold Managing Director, Wayne Bramwell commented today, attempting to promote the slow and steady approach to investors:

‘Westgold delivered its guidance in FY23, hitting the top end of production guidance and mid-point of costs. This was achieved while undertaking an organisational transformation which has placed the Company in a position to build cash and enhance profitability on a sustainable basis.’

‘Our safety, cost out and efficiency programmes will continue to drive productivity in FY24 and with full exposure to the gold price from August, we will continue to build balance sheet strength. The business is now structured to deliver safe and profitable ounces and critically, our FY24 growth ambitions are funded from our existing cash resources.’

The latest survey data out today from the Australian Industry Group (AIG) shows manufacturing is still feeling the pinch.

The AIG Manufacturing Index is a survey of about 200 manufacturers that measures the relative level of business conditions in the sector.

Traders watch these surveys closely because purchasing managers usually have early access to data about their company’s performance.

This data can be a leading indicator of overall economic performance.

The latest survey index for July was -25.6, down from -19.8 in June.

Source: Investing.com

A reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.

The latest survey data out today from the Australian Industry Group (AIG) shows manufacturing is still feeling the pinch.

The AIG Manufacturing Index is a survey of about 200 manufacturers that measures the relative level of business conditions in the sector.

Traders watch these surveys closely because purchasing managers usually have early access to data about their company’s performance.

This data can be a leading indicator of overall economic performance.

The latest survey index for July was -25.6, down from -19.8 in June.

Source: Investing.com

A reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.

The ASX is taking a beating today, down 0.80% at 7,391.1.

All sectors except Information Technology (up 0.21%), are down today, with Utilities the worst hit, down 1.97%.

The Big Four banks are also trading down, with Commonwealth Bank faring the worst, down 1.69% trading at $104.06.

The ASX is taking a beating today, down 0.80% at 7,391.1.

All sectors except Information Technology (up 0.21%), are down today, with Utilities the worst hit, down 1.97%.

The Big Four banks are also trading down, with Commonwealth Bank faring the worst, down 1.69% trading at $104.06.

Fitch Ratings downgraded the U.S. government’s credit rating on overnight, warning about the growing debt burden and political dysfunction in Washington.

The downgrade, to ‘AA+’ from ‘AAA,’ is the first by a major ratings firm in more than a decade. It comes weeks after President Biden and congressional Republicans came to the brink of another default.

Fitch said the downgrade reflects an ‘erosion of governance’ in the U.S. relative to other top-tier economies over the last two decades.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” the agency said.

Biden administration officials criticized Fitch’s decision, blaming governance problems on the Trump administration and arguing that the U.S. was not at risk of missing its debt payments.

Fitch said it expects the general government deficit to rise to 6.3% of gross domestic product in 2023 from 3.7% last year. The expected deficit growth reflects cyclically weaker federal revenues, new spending initiatives and a higher interest burden, Fitch said. The firm expects the U.S. economy to slip into a recession later this year.

The downgrade is likely to have a modest impact on Treasury yields, but it could raise concerns about the long-term health of the U.S. economy.

US Treasury Secretary Janet Yellen was not impressed by the call, remarking:

‘I strongly disagree with Fitch Ratings’ decision,’ adding that the change announced was ‘arbitrary and based on outdated data‘.

As the Tech rally remains in full overdrive and the market greed index sits at ‘extreme greed’, here is a historical view of the position Wall Street finds itself in.

Stocks continue one of their best years on record. With price-only S&P 500 data going back to 1927, this year ranks as the tenth best through July 31.

Only 1933, 1987, 1975, 1997, 1989, 1954, 1995, 1943, and 1955 posted better returns through the first seven months of the year.… pic.twitter.com/nane2H3W5Y

— Jim Bianco (@biancoresearch) August 1, 2023

Bitcoin trading volume fell to its lowest level in over a year in July, as the digital currency’s volatility also plummeted.

Data from K33 shows that Bitcoin’s five-day volatility was lower than that of the S&P 500, tech stocks, and gold. This is a rare occurrence, and it has often been a precursor to a period of increased volatility in the bitcoin market.

Bitcoin’s 30-day volatility is also near five-year lows. This suggests that the market is currently in a very quiet but stable state. However, as Bendik Schei and Vetle Lunde of K33 warn, this could be a sign that volatility is building up and could erupt in the near future.

‘Traders should thus be vigilant,’ Schei and Lunde said.

It is unclear what is causing the decline in Bitcoin’s volatility. Some analysts believe that it is due to the recent sell-off in the cryptocurrency market, which has driven away many speculative investors. Others believe that it is simply a reflection of the overall decrease in volatility in the global financial markets.

Whatever the reason, the decline in Bitcoin’s volatility is a significant development. It could mean that the market is becoming more mature and less susceptible to wild price swings. However, it could also mean that the market is simply waiting for the right catalyst to ignite a new period of volatility.

Only time will tell what the future holds for Bitcoin. However, one thing is for sure: the market is currently in a very different state than it was just a few months ago.

The ASX 200 opened down 0.57% at 7,408.0

• $AUD down -2.48% at 66.61 US cents
• ASX futures down -0.21% to 7,341.0
• S&P 500 down -0.27%
• NASDAQ down -0.43%
• DOW up +0.20%
• FTSE down -0.43%
• STOXX down -0.57%
• SSE flat
• Bitcoin up +1.93% to $US 29,778.45
• Spot gold down -0.73% to $US 1,949.73
• Iron ore down -0.20% to $US 112.46
• Brent Crude up +0.91% to $US 85.68pb

All figures shown are from 10:10am AEST

Morning all,

The S&P 500 was down overnight as earnings misses from Uber and Lyft showed weakness in growth, despite Uber posting its first profit since it began reporting in 2014.

The market awaits earnings reports from Apple and Amazon.

The Dow remained one of the few indices up overnight, bolstered by an 8% rise in Caterpillar shares after reporting better-than-expected quarterly results.

Over the ditch, New Zealand’s jobless rate rose from 3.4% to 3.6% in the second quarter as inflation showed signs of easing.