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Despite a strong close on Wall Street, Aussie shares slumped again today as yesterday’s stimulus hopes were temporarily snuffed.
The fall was brought about by foggy details and delays in President Donald Trump’s “very dramatic” stimulus package announced yesterday. Allegedly, the President of the United States pitched the idea of scrapping payroll taxes until the end of the year but was met with resistance from US lawmakers.
Things were made worse when the President was a no-show at the White House press conference announced yesterday.
Thus, while the Dow Jones gained a healthy 1167.14 points or 4.89 per cent while Australia slept, our own stock market took another dive today.
After an early surge, the benchmark ASX 200 index reversed and fell 3.24 per cent to 5747.30 points today.
The finance sector was the biggest drag on the market today as the big four each posted deep losses. Commonwealth Bank slumped 6.64 per cent to its lowest point since December 2018. NAB reached a decade-long low as it fell 6.26 per cent. ANZ fell 5.54 per cent and Westpac lost 5.26 per cent.
Investment banker Macquarie Group was enjoying a record-high a month ago but has lost around 20 per cent since then. Shares declined 4.46 per cent today to $120.90 each.
The other twin-pillar of our market, the materials sector, suffered a similar fate as BHP fell 2.5 per cent. Rio Tinto lost 1.08 per cent but Fortescue managed to outperform the sector and close 2.62 per cent in the green. Meanwhile, Newcrest Mining tumbled a heavy 8.61 per cent after cutting its production guidance.
The ever-volatile tech stocks were red across the board today, spearheaded by Afterpay’s 8.62 per cent decline. Computershare lost 3.98 per cent after downgrading its earnings forecast due to Covid-19’s impact on international interest rates. Xero lost 0.41 per cent and WiseTech 5.75 per cent.
Meanwhile, the energy sector enjoyed a day out of the spotlight after being pummelled by the weekend’s shock drop in oil prices. While the sector still closed 3.39 per cent lower, there were mixed results among its top players. Origin Energy and Caltex gained 1.01 and 0.11 per cent, respectively, but the gains were offset by Woodside and Santos’ 4.55 per cent and 5.28 per cent respective losses.
As for our neighbours to the east, Asian stocks were split down the middle today. When the ASX closed, the Asia Dow was 1.56 per cent down and Japan’s Nikkei 225 1.38 per cent down. The Hang Seng, however, was holding onto a 0.04 per cent gain while the Shanghai Composite was up 0.32 per cent.
As for our local currency, the Australian dollar is currently slightly stronger against the US dollar and the Pound sterling. One dollar currently buys 65.12 US cents, 50.4 pence, and 10.38 South African Rand.
Today’s ups and downs
Medical company Neuroscientific Biopharmaceuticals (ASX:NSB) was topping the gainers list this morning after announcing strong results from its latest blindness treatment study. The company tested its EmtinB product’s ability to treat glaucoma in pigs, with the study bringing in “unprecedented” results. NSB is now looking to begin human trials later this year. Shares in NSB dimmed slightly after their morning glow but still closed 9.68 per cent higher at 17 cents each.
Meanwhile, shares in Qantas Airways (ASX:QAN) lost almost a tenth of their value after the company slashed its international capacity yesterday on the back of weakened demand. Eight of the company’s largest aircraft have been grounded until mid-September as Covid-19 keeps people in their homes and out of the air. Shares in Qantas closed 9.21 per cent lower today at $4.04 each.
