ASX drops to 12-month low as energy stocks run out of puff

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Robust retail sales data have failed to reassure investors on Monday with the Australian sharemarket following Wall Street’s poor lead to close below 6800 points.

Welcome to your five-minute recap of the trading day and an overview of how the experts saw it.Stronger retail sales data failed to reassure investors on Monday with the Australian sharemarket following Wall Street’s negative lead, dropping to a 12-month low amid worries about the risk of escalating conflict in the Middle East and the possibility of another interest rate rise in November.

Star Entertainment slipped 8.4 per cent to 54 cents as talks of proposed reforms to casino regulations in Queensland spooked investors. Chesler said Black Friday sales later this month would be the “real test” for retailers. “We expect weakness to spread in the retail sector in coming months, particularly in more discretionary household goods categories such as whitegoods, big ticket technology items and appliances.”

The Nasdaq was the bright spot in the market, gaining ground on the strength of several big technology and communications companies reporting solid earnings. The index rose 47.41 points, or 0.4 per cent, to 12,643.01. Several big companies slipped after reporting disappointing earnings for their latest quarters. Exxon Mobil fell 1.9 per cent after reporting a bigger drop in profits than Wall Street expected. Ford stumbled 12.2 per cent after reporting disappointing earnings and revenue a day after it reached a tentative contract agreement with the United Auto Workers union.

 

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