The ASX followed Wall St lower in morning trading.
The S&P/ASX200 dropped 59.3 points or 0.82% to 7,196.70.
This index has lost 2.74% for the last five days but has gained 9.25% over the last year to date.
The bottom-performing stocks so far are Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) down 6.82% and GUD Holdings Limited (ASX:GUD) down 6.73%.
Tech, energy, real estate and utilities dragged the market down, with the only two sectors in the black being healthcare and materials.
BHP, Fortescue and Rio Tinto traded higher, while the healthcare sector CSL gained 1% and Sonic Healthcare was 0.7% higher.
Santos fell 1.2% after oil prices slumped to three-month lows.
Afterpay fell 1.4% to $107.33.
It’s all about GDP
While the market is down, there is good news this morning: GDP has fallen less than predicted.
The Australian Bureau of Statistics (ABS) has reported its GDP data, which has contracted 1.9% in the September quarter defying the 2.7% predictions made by economists.
The September quarter was hit by heavy lockdowns in NSW and Victoria and it was feared this would have a major impact on figures.
In further good news, the economy expanded 3.9%, better than economists’ expectations of 3% growth on an annualised basis.
According to the ABS, the September quarter fall followed four consecutive rises since the 6.8% drop in the June quarter of 2020 when the entire country was in lockdown.
Meanwhile, household savings rates have surged from 11.8% to 19.8%.
Another bank in trouble
The major banks are having a torrid time. First it was Westpac admitting to ethical breaches, culminating in large fines.
Now, it is the ANZ Banking Group (ASX:ANZBY) Ltd which is facing a class action from law firm Phi Finney McDonald, which alleges ANZ credit card contracts contravened the Australian Securities and Investments Commission Act.
ANZ was 0.5% lower at $26.56 in morning trading.
Which bank is next (no pun or inference intended)?
On the small cap front
Firefinch Ltd (ASX:FFX) is up 6.38%. FFX has received the US$39 million first tranche equity funding from Jiangxi Ganfeng Lithium Co Ltd as part of a subscription agreement to fund the development of Goulamina Lithium Project in Mali.
Aeris Resources Ltd (ASX:AIS) is up 3.23%. AIS updated the mineral resource estimate at its Budgerygar deposit, increasing total tonnage by 15% to 2.6 million tonnes and total contained copper metal also by 15% to 39,000 tonnes.
Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) is up 3.85%. NVA’s lithium spinout has flagged a major expansion to its flagship Thompson Brothers property just weeks after it transitioned to a public company.
Bellevue Gold Ltd (ASX:BGL) is up 1.89%, with its coffers full following the execution of a A$200 million loan facility to push ahead with the development of the Bellevue Gold Project in WA.