ASX dives at the open; Lovisa slumps on trading update, DroneShield sheds 10%
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More news: Australian shares dropped at the open, tracking steep losses on Wall Street overnight. The benchmark S&P/ASX 200 index was down 137.8 points, or 1.61%, to 8,414.9 at 10:40am AEDT. All 11 sectoral indices were in negative territory, with miners (-3%) leading losses.
Jewellery retailer Lovisa (-10.9%) was the worst performer on the ASX 200 after its trading update failed to meet expectations.
Counter-drone technology company DroneShield (-10.6%) continued its recent selloff following ongoing concerns about the selldown of shares by three directors including CEO Oleg Vornik.
IperionX (-8.4%), Iluka Resources (-7.6%) and Pilbara Minerals (-6.1%) led losses among miners, while Megaport (-7.7%), SiteMinder (-6.4%) and Codan (-5.7%) were worst hit by a pullback in tech stocks.
Australian shares to slide as Nvidia-led rally unwinds on Wall St
The news: Australian shares are set to open lower at the open after US stocks erased early gains, with Nvidia shares sinking having initially spiked following its strong third-quarter earnings report.
The numbers: Updated at 7:30am AEDT:
- ASX futures: down 122 points to 8,449
- Wall Street: Dow Jones down 0.43%, S&P 500 down 0.81% and Nasdaq down 1.54%
- Europe: CAC 40 up 0.34%, DAX up 0.50% and FTSE 100 up 0.21%
- Spot gold: up 0.05% to USD4,080 per ounce
- Oil prices: Brent down 0.36% to USD63.28/bbl and US WTI down 0.59% to USD58.90/bbl
- AUD: down 0.37% at 64.55 US cents
- Bitcoin: down 5.11% to USD86,763.
The context: Wall Street stocks slumped after an early rally, as chip-related companies, led by Nvidia, turned negative. Nvidia's strong earnings report saw the chip maker climb 5% in extended trading in the previous session, but ended Thursday 2.5% lower. The Philadelphia Stock Exchange Semiconductor Index, which also includes names like Advanced Micro Devices and Broadcom, fell 1.7%.
Meanwhile, delayed US jobs data showed 119,000 new positions in September, more than double forecasts, but the unemployment rate rose to 4.4%, the highest since 2021. The report adds to uncertainty over whether the Federal Reserve will cut interest rates next month.
In the local market, WiseTech Global, Lovisa, Sims, Accent Group, Reece, Lifestyle Communities, Regis Resources, Synlait Milk and Westgold Resources will all hold their annual general meetings today.
