The ASX has dropped its bundle for the third day in a row.
The S&P/ASX200 is lower 12.50 points or 0.17% to 7,303.70 and crossing below its 125-day moving average. Over the last five days, the index has gained 0.59%, but is down 1.89% for the last year to date.
It’s no surprise stocks are down as interest rates now start to rise.
"It is no surprise for many that the RBA increased the cash rate, given the recent announcement that headline inflation hit 5.1% - the highest since the introduction of the GST in 2000,” national lending manager at Australian digital lending and payments provider WLTH Chad Hoy Poy said.
“Lenders are expected to pass on the increased cost of lending to their customers - it is just a matter of how quickly and by how much.
“This is the first RBA rate increase since 2010 so there are a lot of people who have not experienced interest rate increases in the past. Assessment buffers are built into all lenders' calculators though and everyone should attempt to make extra repayments on their loans wherever possible.
“It is now important to see where rates land at each lender and then to speak to experts you can trust in regard to what might be the next step for your home loan.
“There is talk that the cash rates might increase steadily until the end of the year."
There are also fears among investors that the US is gearing up for the largest interest rate hike in over two decades as the Federal Reserve battles 40-year high inflation.
Expectations are the Fed will raise the rate from 0.5% to 1%. Markets are factoring in four consecutive 50 basis point rises.
The bottom-performing stocks in the ASX 200 are ARB Corporation Ltd down 12.39% and Zip Co Ltd (ASX:Z1P) down 10.61%.
It was the miners that dragged the market down today. AVZ Minerals Ltd (ASX:AVZ) was the worst of the small caps losing close to 20% after the Democratic Republic of Congo mines minister signed a Ministerial Decree to award the Mining Licence for the Manono Lithium and Tin Project to Dathcom Mining SA.
As for the sectors Energy was up 0.86% while Industrials (0.65%), Healthcare (0.57%), Financials (0.62%) and Utilities (0.35%) were all higher, however, Materials (-0.81%), Consumer Discretionary (-1.08%), Consumer Staples (-0.52%), Information Technology (-1.08%) and Real Estate (-1.40%) fell.
On the commodity front aluminium (-3.52%), nickel (-2.49%) and zinc (-4.82%) were the biggest losers.
Australia Zoo launching NFT project
Home of the Crocodile Hunter, Australia Zoo has announced its foray into the realm of digital art and Web3 with the launch of its 'Wildlife Warriors' NFT (non-fungible token) project.
Created on Algorand - the world’s first carbon-negative blockchain with 0.01 gas and transaction fees (transaction fees get converted into carbon offsets) - the limited NFT series celebrates the 20th anniversary of Australia Zoo’s Wildlife Warriors and is centred on raising awareness and funds to protect Australia’s wildlife and wild places; a cause that is at the heart of Australia Zoo and its world-renowned owners, the Irwins.
In partnership with Meadow Labs, an Australian-based technology start-up focused on creating the world's most meaningful digital collecting experiences by propelling ubiquitous brands within the NFT arena, the rare NFT project will comprise of a series of drops, each focusing on a different Australia Zoo Wildlife Warriors animal. The NFTs will be randomly generated, non-deterministic, utility-driven and 100% unique to the buyer (no duplicates).
Available globally, the NFTs can be purchased with fiat on-ramping via MoonPay. This will allow customers to buy cryptocurrencies directly from the bespoke webstore, simplifying the process and allowing NFTs to be accessible to everyone.
“At Australia Zoo we’re always open to new ways that can help continue our Wildlife Warriors mission. Any innovation that can help our conservation efforts, particularly one that shares our vision of protecting the planet, is something we’re thrilled to support. This green chain and new technology allows us a new avenue to continue to fight for the protection of our wildlife and wild places,” Australia Zoo’s Robert Irwin said.
Meadow Labs Co-founder and CEO Martin Kelly, added: “We’re really excited to partner with Australia Zoo in their first foray into Web3 and their mission of fighting for the planet’s wildlife and wild places, one NFT at a time.
"This is a sensational example of what innovative brands can achieve when they open themselves up to the endless possibilities that Web3 has to offer. This is just the beginning of a long-term partnership to create an 'NFT for good' movement that builds on ensuring we all have a sustainable future.”
Head of Communities, Australia, for Algorand Foundation, Adriana Belotti, said: “It's fantastic to see Australia Zoo and Meadow Labs bring wildlife conservation fundraising to the Algorand blockchain, as it really fits in with our core value of sustainability.
"I'm sure that collecting these NFTs will resonate with everyone who has a soft spot for the iconic Aussie wildlife, both here and abroad. It's important to highlight that fundraising via NFTs on a public blockchain also means that transactions are processed through a smart contract that automatically transfers 100% of primary sales proceeds to Australia Zoo and that Algorand delivers that service with carbon-neutrality. It's good for the animals and for our planet.”
For more information including timings for the first NFT drop, and to secure a spot to buy ahead of the public mint, an exclusive 'Allow List' will launch on May 4. Visit australiazoonfts.com to sign up.
On the small cap front
The S&P/ASX Small Ordinaries (SXO) was down 1.50% with several small caps being hit hard.
A couple were in the green that reported news today.