The worst session for the S&P 500 since March last night has carried over to the local market with a sharp drop after the open on the ASX 200 this morning. But the benchmark index has trimmed its morning losses to steadily recover throughout the day — currently down 0.24% lower at 3:30pm, taking its weekly loss to1.93%.
Real estate is leading the losses (-1.63%), followed by tech stocks after a 2% slump on the tech-heavy Nasdaq overnight. WiseTech, Xero and Altium are each trading more than 1.2% lower.
Interest rate sensitive stocks, including real estate and tech, have taken on board signalling from the US central bank this week that it expects to make one further rate rise this year and to keep monetary policy tighter through 2024 than previously thought.
A fall in iron ore prices overnight has been felt by Rio Tinto (1.86%) while BHP Group is flat.
News Corp is up 1.80% following the gains of its US listing last night after Rupert Murdoch said he was stepping down as chairman of his companies. His son Lachlan will take over as News Corp chair and that of the Fox Corporation.
Also trading higher is fruit and vegetable processor Costa Group that gained 6.55% after accepting a $3.20 cash per share takeover offer by US buyout company Paine Schwartz Partners.
Oil prices pause but are tipped to go higher
Energy stocks traded lower today as oil prices steadied around $US90 a barrel with economic headwinds in the West offsetting a Russian ban on fuel exports.
However, there’s talk that oil could return to triple digit prices in the coming months. Over the past three months Brent Crude is up 25% and it hasn’t dipped below US$70 per barrel since 2021. But if Goldman Sachs (NYSE:GS) is correct, the oil price rally isn’t over yet.
Goldmans sees oil hitting US$100/barrel by the year’s end, driven by OPEC+ production cuts and strong demand.
JPMorgan is even more bullish on oil, tipping the possibility of $120 per barrel prices. While it sees Brent crude easing to around US$86 per barrel by year's end, JPMorgan strategists say:
"There is also a concern that the recent supply cuts are not finished, and the price of oil could jump much further to as high as uS$120 per barrel.”
Five at five
Recce Pharmaceuticals demonstrates R327 safety profile at faster infusion rate
Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) has completed cohort dosing of both male and female subjects in the Phase 1/2 UTI/Urosepsis clinical trial evaluating its experimental compound RECCE® 327 (R327) at faster infusion rates.
Poseidon Nickel makes leadership changes, scales back Black Swan costs to save $3 million annually
Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has taken further steps to reduce the cost of doing business following its decision in July to put on hold the final investment decision (FID) on the restart of its Black Swan Nickel Project in Western Australia.
Maximus Resources kicks off gold and nickel drilling at Spargoville
Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) has kicked off a 1,500-metre reverse circulation (RC) drill program across its Hilditch Gold Project and the Kandui Nickel prospect, situated near Kambalda in Western Australia.
Alligator Energy demonstrates strong progress across its uranium and energy metals portfolio
Alligator Energy Ltd (ASX:AGE) has delivered strong progress across its multi-jurisdictional portfolio prospective for uranium and energy metals across Australia and Italy.
Mako Gold extends Napié gold discovery with positive assays from Gogbala South prospect
Mako Gold Ltd (ASX:MKG) has confirmed gold mineralisation extends at depth outside the existing 868,000-ounce resource at the Napié Project in Côte d’Ivoire following completion of 837 metres of diamond drilling at the Gogbala South target.
On your six
The Australian IT stock to watch
If you’ve bought a new PC or other computer gear from a local retailer, chances are it got to you via Dicker Data (ASX:DDR) Ltd. Branding itself as Australia’s most trusted IT distributor, Dicker Data (ASX:DDR) has skyrocketed since the low of July 26, as its share price is up 28%, with more predicted to come.
One to watch
Bailador Technology Investments with Proactive at ASX Small and Mid Cap Conference
Bailador Technology Investments Ltd (ASX:BTI) co-founder Paul Wilson speaks with Proactive at the ASX Small and Mid Cap Conference - September 2023. BTI is a specialist investor in the information technology sector.