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The ASX200 closed just 0.07% in the green, after earnings results from Appen (ASX:APX) and Credit Corp (ASX:CCP) disappointed investors. APX’s shares dropped after reporting a worse half than forecasts, as underlying earnings and revenue fell, while CCP’s shares dropped after reporting “challenging conditions”. Also yesterday, the RBA announced a further 50 basis point rise to the cash rate, now at 1.85%. This was in line with expectations, so we didn’t see any large impacts from the announcement. The market was trading a little lower leading up to the RBA’s announcement at 2:30pm, but then rose in afternoon trade, following the news.
The consumer discretionary sector, consumer staples and tech advanced the most, while real estate and materials declined.
The best performing stock was BNPL company Zip (ASX:ZIP) which gained 15% yesterday, and it was followed by the a2 Milk Company (ASX:A2M) and St Barbara (ASX:SBM). The worst performing stock was United Malt Group (ASX:UMG), after the company downgraded its FY22 guidance.
European shares were in the red, as investors track risk-off sentiment globally and whether last month’s rally has any further to go. Corporate earnings also remained a core driver of individual share price movement with shares such as BP and Ferrari publishing results. The STOXX 600 closed 0.2% lower, with financial services stocks falling 1.7%. Most sectors were in negative territory, however we did see oil and gas stocks gain.
US equities were also lower, for the second day, amid more hawkish commentary from the Federal Reserve. The Dow Jones fell 1.2% or just over 400 points, weighed down by disappointing earnings from Caterpillar. The S&P500 closed 0.7% lower. And the Nasdaq fell 0.2%, however the index did see a 19% jump in Uber shares following its corporate earnings release. Stocks were also reacting to comments made by the Chicago Fed President Charles Evans, who said he hopes the central bank can raise its benchmark interest rate by half a percent. So note, there is no Fed meeting in August – the next Fed interest rate decision will be at the end of September.
What to watch today: