ASX 200 LIVE: ASX bounces, Woodside sinks, NextDC soars

Pinned post – 4.20PM – Sep 5, 2024 The Australian sharemarket edged higher on Thursday as traders tentatively bid up stocks following a sharp sell-off in the previous session. That’s after the benchmark lost 1.9 per cent on Wednesday – its largest one-day drop in more than a month – when factory activity data in the US suggested the economy was faring worse than previously thought. Shares retreated from earlier highs following Reserve Bank governor Michele Bullock warning that if inflation didn’t continue to abate, “the best medicine may be putting more restriction into the economy”. “Using interest rates to bring inflation back down to target is absolutely worth achieving.” Goldman Sachs economist Andrew Boak noted Ms Bullock’s rhetoric contrasted with the 80 per cent chance of a rate cut currently priced by the market before the end of 2024. “We view governor Bullock’s comments as a continuation of an effort to push back on expectations that the RBA will cut rates this year,” he said. Banking stocks were among those to pare earlier gains; the sector closed 0.7 per cent higher. Elsewhere on the ASX, tech stocks were among the best performing, buoyed by data centre providers riding renewed investor enthusiasm after AirTrunk clinched a $24 billion buyout. NextDC led the charge, closing 8.4 per cent higher at $17.42. The company, which received a query from the exchange operator, noted that an inclusion in a US index overnight may have also buoyed buying in the stock. Oil and gas giant Woodside was the largest drag on the index, sinking 6.2 per cent to $25.35 following a downgrade to sell from analysts at Citi as the stock traded without the right to its next dividend. Brent fell below $US73 a barrel – a 14-month low – having dropped nearly 8 per cent since the start of the week. In other company news, Coronado Global Resources said heavy rain at its coal mine in the Bowen Basin of Central Queensland has hurt production, triggering it to wind back its previous guidance. Challenger fell 11 per cent to $6.23 after US firm Apollo Global Management offloaded a partial stake in the local annuities manager. Finally, shares in Star Entertainment remain suspended as the casino operator’s negotiations with its lenders continue. – This Summarize was created by Neural News AI (V1). Source: http://www.afr.com/markets/equity-markets/asx-to-edge-up-s-and-p-500-slips-amid-rate-cut-debate-20240905-p5k7zn