End of Day Report – Wednesday 11 September: ASX 200 falls 24 as banks drop, resources rise

Market Updates

ASX 200 closed down 24 points to 7988 (-0.3%) as banks fell and resources rose. CBA led the falls down 1.9% with the Big Bank Basket down to $242.11 (-1.3%). MQG and other financial suffered a similar fate after falls in the banking sector in the US. REITS were slightly weaker with GMG up 1.1% bucking the trend after NXT raised another $750m for an Asian data centre expansion. Industrials drifted lower with REA now 2.2% lower as serious discussion begin on UK acquisition. Resources were buoyed by unconfirmed reports that a couple of CATL’s lithium mines had suspended production due to low price. An immediate reaction in lithium prices higher saw the shorts rush to cover. MIN up 16.0 %, PLS up 13.1% and LTR up 13.1% leading the charge. MIN also announced new rosters and cost-cutting. Gold miners were better in places, DEG up 2.3% and RED up 1.8%. Iron ore stocks were also in demand as BHP rallied 1.8% and FMG up 2.6%. Oil and gas stocks got whacked on crude falls, WDS down 2.2% and STO off 1.0%. In corporate news, NXT now raised $2bn in the last five months! The stock dropped 5.6% on the news today. NEM sold stakes in two local gold mines to Greatland Gold which is now looking at an ASX listing. Regal sold down its BCB stake and WAM talked about the courageous trade in buying miners and keeping clear of banks. ASX chairman Damian Roche will retire at this year’s AGM. On the economic front, Dr Sarah Hunter from the RBA was out and about today. 'Labour markets are still tight, but the RBA had been surprised about the “limited” easing this year in some key employment indicators.' Asian markets slipped, Japan down 1.8%, China off 1.1% and HK down 1.3%. UK GDP for July 0% M/M. US CPI tonight. Dow Futures down 171 points. NASDAQ Futures down 113 points.
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