The Australian sharemarket has opened lower, tracking a loss Wall Street after stronger-than-expected jobs data heaped more interest rate worries on equity markets.
Early in trade, materials stocks have also been hit, after industrial metal prices extended their losses for the second straight day. BHP and Rio Tinto are both down more than 1 per cent. Société Générale’s Albert Edwards, who’s been forecasting a market drop for some time, wrote in a note that the surge in bond yields had ”have edged up 0.3 per cent after a major stakeholder and Australia’s richest woman increased her holding in the company to 14.7 per cent.has dropped 2.6 per cent. Analysts at Citi have cut their price target for the tech stock to $65 form $90.gained 0.
It and parent company Youpla were sued by ASIC in October 2020, and were eventually found to have engaged in false and misleading conduct and ordered to pay a $1.2 million fine. Elsewhere, the largest speculative-grade bond ETF is mired in its biggest two-day slump this year, while the cost to insure against default on an index of junk-rated debt reached its highest in close to five months.
Berkshire Hathaway’s ownership of HP is about to drop below 10 per cent after it sold nearly 5 million shares, according to a regulatory filing by Buffett’s company late Monday. In the past 30 days, shares of HP have tumbled nearly 14 per cent, but there has been a fairly broad sell-off across the tech sector. In the same span, shares of Apple have fallen 9 per cent. But HP is still one of the biggest decliners among peers.The seasonally adjusted Judo Bank Australia Services PMI Business Activity Index rose to 51.8 in September, up from 47.8 in August, the steepest recorded growth since May.
Traders betting against megacap technology stocks are now winners after the September selloff unwound previous gains in the group. “The increased short selling in September coupled with long side selling drove down stock prices during the month, but if markets rebound in the fourth quarter, we may see a spurt of short covering in some of the most profitable names as short sellers look to realize mark-to-market profits,” Ihor Dusaniwsky, managing director of predictive analytics at S3, said in a note.TPG Telecom shareholders are still none the wiser regarding the fate of Vocus Group’s $6.
The report drove swaps traders to increase wagers on the Federal Reserve raising rates in December to better than a 50-50 odds. The next data point for the labor market will be a monthly payrolls print on Friday where traders will be looking for any signs of cooling.The ASX looks set to extend a six-month low, tracking a sell-off on Wall Street after a strong US labour market data added to fears the Federal Reserve will have to continue to raise interest rates.