ASX 200 fell 153 points to 7951 (-1.9%) as all sectors suffered after big US and Asian falls. GDP coming in tepid at best did not help sentiment either. Resources were in the seller’s sights with iron ore majors under serious pressure, The Three Amigos showing big losses and FMG falling 8.5% ex dividend too. Lithium and uranium stocks were smacked hard, PLS down 6.2% and MIN falling another 5.4%, with gold miners also on the nose despite bullion holding up relatively well. NST is down 2.2%, and EVN is dropping 5.5% as brokers would back copper forecasts, too. Oil and gas were under pressure as WTI slipped below $70. WDS down 2.5% and STO off 2.6%. Banks the previous pillars of strength finally capitulated, with CBA down 2.4%, NAB dropping 2.5% and the Big Bank Basket falling to $239.48 (-2.3%). MQG dropped 1.2%, with the ASX off 1.6% and SOL down 1.5%. Insurers were mixed, QBE actually firmed 1.2%, REITs sold down in line with the market malaise. Healthcare fell with CSL down 0.7% and SHL down 3.8%. Industrials were weaker too as expected, WES fell 1.8% and COL and WOW slid. Tech under some pressure, WTC off 2.0% and XRO down 2.5%, with the All–Tech Index off 2.1%. In economic news, GDP came in at 0.2% weaker than expected with government spending holding things up as the economy slides even further. On the corporate front, ABB sold its SLC stake, ORA sold its US packaging business, and STO announced it will sell more LNG to Glencore. Asian markets fell hard, Japan off 4.4% and HK and China down but only modestly. 10Y yields dropped to 3.93%. Dow Futures down 126 points. NASDAQ Futures down 114 points.

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HIGHLIGHTS

• Winners: ORA, ABB, PYC, NAN, HSN, QBE
• Losers: CTT, SPR, CSC, DYL, DEG, PNR, FMG, GOR
• Positive sectors: Nothing.
• Negative sectors: Everything.
• ASX 200 Hi 8083 Lo 7928
• Big Bank Basket: Lower at $239.48 (2.3%)
• All-Tech Index: Down 2.1%
• Gold: Better at $3,719
• Bitcoin: Falls to US$56432
• 10-year yields fall to 3.93%
• AUD: weaker to 67.03c
• Asian markets: Japan off 0.3%, China up 0.2% and HK down 0.4%.
• Dow Futures down 126 NASDAQ Futures down 114
• European futures searching for direction at the open.

MAJOR MOVERS

• ORA +7.2% sells US business.
• ABB +5.9% sells SLC stake.
• NAN +3.3% bucking the trend.
• PYC +4.2% bargain hunters.
• APX +5.3% broker note.
• CTT -12.0% Dean finishes his buy order.
• SPR -11.0% profit taking.
• FMG -8.5% ex div and some.
• DYL -8.8% BOE -5.6% uranium falls.
• WHC -6.0% ex-dividend.
• EL8 -12.1% uranium fallout.
• PMT -11.5% lithium depressed.
• MGX -9.5% iron ore slides.
• Speculative Stock of the Day: Nothing on any volume.

ECONOMIC AND OTHER NEWS

• Australian gross domestic product (GDP) rose 0.2% (seasonally adjusted, chain volume measures) in the June quarter 2024 and by 1.5% in the 2023-24 financial year, according to figures released by the ABS.

• Outside of the pandemic, it was the slowest rate of annual economic growth since the early-1990s recession.
• But government spending continues higher.

In July 2024, household spending:

• Rose 0.8% month-on-month on a? current price, seasonally adjusted basis.
• Rose 2.9% compared with July 2023.

• Investment banks cut China GDP forecasts as confidence wanes. Caixin services PMI was 51.6 in August, short of estimates of 51.8.

• Oil pushed lower after a loss of almost 5% on Tuesday as the possible easing of political unrest in Libya shifted focus back to OPEC+’s plan to boost production while demand concerns persist.

• The US Justice Department sent subpoenas to Nvidia Corp. and other companies as it seeks evidence that the chipmaker violated antitrust laws. Not sure how you can be punished if you are the only one really. Isn’t that a free market?
• Nvidia fell the most of any US stock, in valuation terms, ever. US$300bn lost in one day! Maybe Jensen will sell a jacket!
• Goldman slashes copper forecast dimming miners’ profit outlook.
• Nippon Steel pledges US Steel would be run by Americans.
• European futures down around 1%.

And finally….

Clarence

XXXX