ASX sags below 6800 to new low for 2023

The news: The Australian sharemarket slumped to new lows for 2023, with the benchmark ASX 200 closing 0.8% lower to 6,772.90. The Aussie dollar edged upward and is buying 63.5 US cents, but is facing resistance at a key level. Oil and bond yields settled as worst case fears for the situation in the Middle East eased for now, Bloomberg reports.

The numbers: By sector, Only IT stocks made any gains on Monday, lifting 0.4%. Energy stocks had a rough day, losing 2.6% on the back of a 5% slide in Whitehaven's value after Bell Rock dumped most of its shares. Large caps Woodside, Santos and Ampol all dropped more than 2% each. IGO lost more than 9%, after lithium price volatility slashed underlying quarterly earnings by 42%. Financials also lost 1.2%, with CBA (-1.5%), NAB (-1.8%), ANZ (-1.1%) and Westpac (-1%) all finishing in the red.

The context: Endeavour will hold its annual general meeting tomorrow, along with InvoCare and Deterra Royalties. It's a big week for global macro data, with China's PMI figures due tomorrow at 12:30pm AEDT, and the Bank of Japan's rate decision to follow later in the afternoon. The Federal Reserve will announce its interest rate decision early Thursday morning, on the heels of hotter than expected inflation and PMI figures last week. The Bank of England will make its interest rates call later that morning.