Australia’s stock market experienced its worst day in three months due to higher-than-expected domestic CPI data and lower-than-expected China PMI data. The S&P/ASX 200 index dropped 1.64 per cent to reach a two-month low, resulting in a loss of $40 billion in market capitalization, with all sectors except tech declining, particularly energy, materials, financials, and consumer discretionary sectors. The market decline was fueled by concerns over potential rate hikes by the Reserve Bank of Australia (RBA) due to the CPI data and a pessimistic outlook for commodity prices due to China’s PMI data.
Bitcoin is experiencing its first monthly decline of 2023, with a drop of around 6 per cent in May, signaling a loss of momentum in the crypto rebound. The climb in Bitcoin’s value has tapered off due to factors such as reduced liquidity and restrictive monetary policies, dampening enthusiasm for cryptocurrencies.
At the closing bell, the S&P/ASX 200 was 1.64 per cent lower at 7,091.30.
Futures
The Dow Jones futures are pointing to a fall of 166 points.
The S&P 500 futures are pointing to a fall of 19.50 points.
The Nasdaq futures are pointing to a fall of 61.75 points.
The SPI futures are pointing to a fall of 122 points when the market next opens.
Best and worst performers
The best-performing sector was Information Technology, up 0.01 per cent. The worst-performing sector was Energy, down 2.52 per cent.
The best-performing large cap was Mercury NZ (ASX:MCY), closing 3.81 per cent higher at $5.99. It was followed by shares in Northern Star Resources (ASX:NST) and Evolution Mining (ASX:EVN).
The worst-performing large cap was Whitehaven Coal (ASX:WHC), closing 6.45 per cent lower at $5.66. It was followed by shares in Yancoal Australia (ASX:YAL) and BHP Group (ASX:BHP).
Asian markets
Japan’s Nikkei has lost 1.41 per cent.
Hong Kong’s Hang Seng has lost 2.74 per cent.
China’s Shanghai Composite has gained 0.32 per cent.
Company news
TerraCom (ASX:TER) announces a fully franked dividend of 3.0 cents per fully paid ordinary share. In response, MD Danny McCarthy, said: “Following payment of this dividend in June 2023, the Company will have returned $244 million to shareholders since July 2022.” Shares closed 4.85 per cent lower at 49 cents.
Wildcat Resources (ASX:WC8) announced that field work is underway at their Tabba Tabba project in WA. Wildcat’s maiden drill program which will commence in early July. Shares closed 4.55 per cent higher at 10.5 cents.
Vertically integrated anode materials business, EcoGraf (ASX:EGR; FSE:FMK; OTCQX:ECGFF) has signed a non-binding Cooperation Agreement with POSCO International, a global leading manufacturer of natural graphite anodes. Shares closed 6.67 per cent higher at 16 cents.
Commodities and the dollar
Gold is trading at US$1,980.50 an ounce.
Iron ore is 1.7 per cent lower at US$102.65 a tonne.
Iron ore futures are pointing to a 0.9 per cent fall.
Light crude is trading $0.09 lower at US$69.37 a barrel.
One Australian dollar is buying 64.88 US cents.