ASX falls as every sector drops
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The news: The Australian sharemarket ended the week lower after investors tracked Wall Street that fell following figures that dampened hopes the US Federal Reserve would cut interest rates this year.
The numbers: The benchmark ASX 200 finished down 1.39% to 7,575.9 with all 11 sectors finishing in the red.
The worst performing sector was industrials, down 2.22%, followed by real estate (-1.95%) and telecommunication services (-1.85%). Industrial company Computershare ended the day 1.89% lower after its announcement that it would buy BNY Trust Company of Canada from BNY Mellon.
BHP was one of the worst performers across the ASX 200, down 4.47%, after it confirmed a takeover bid for rival Anglo American which would be one of the biggest deals in the company’s history. Anglo American has rejected the takeover bid saying it "significantly undervalues Anglo American and its future prospects".
Platinum Asset Management fell 5.75% after its Platinum Asia Fund was downgraded by Morningstar analysts after its co-CIO Andrew Clifford stepped away from managing the fund following a team restructure
Super Retail Group also finished lower, down 3.76%, after it flagged an impending court claim over the non-disclosure of a relationship between its chief executive Anthony Heraghty and the former head of human resources, and bullying allegations.
The best performing sector was IT, down 0.39%, followed by healthcare (-0.58%) and utilities (-0.88%).
While the tech-heavy Nasdaq fell 0.64%, big tech companies surged in after hours trading following quarterly earnings including Alphabet (11.48%), Microsoft (4.43%) and social media company Snap (25%) on the NYSE. However, Intel tumbled 7.75% after missing expectations in its quarterly earnings. Similarly, Atlassian fell 5.87% in after hours trading following the news of its co-CEO Scott Farquhar’s departure.
Newmont was the ASX 200’s best performer, up 13.31%, after reaffirming its full-year guidance despite a fall in gold production during the March quarter.
ResMed finished up 9.26% after the healthcare group posted an increase in revenue, gross margin and earnings per share during the March quarter.
Elsewhere, Nick Scali surged 12.58% after the completion of its $46 million institutional capital raise to acquire the UK’s Fabb Furniture.
The Australian dollar is higher buying 65.43 US cents.
The context: The US Personal Consumption Expenditures index figures will be released tonight at 10:30pm AEST which is the Fed’s preferred inflation gauge.
However, all eyes will be on the Fed next week as it gears up to make its latest monetary policy decision.
Next week will also see the Australian Bureau of Statistics release the latest living cost indexes which measure the price change of goods and services along with building approval figures for March.
