The Australian share market, otherwise known as S&P/ASX 200 (INDEXASX: XJO) or All Ordinaries (INDEXASX: XAO), continued on a downward trend on Wednesday, to open the month of June by falling 0.8 per cent.
The biggest detractor in the ASX 200 was the healthcare and technology sectors, falling 1.8 and 2.5 per cent respectively as US Federal Reserve members continue to predict aggressive rate hikes. Cochlear Ltd (ASX: COH) and CSL Limited (ASX: CSL) were both down 1.8 per cent.
Woodside Energy Group Ltd (ASX: WDS), the new merged entity of Woodside Petroleum and BHP Group Ltd’s (ASX: BHP) oil and gas assets had its best day in over two years, gaining 5.2 per cent after completing the merger.
The oil, and gas, price continues to benefit from a growing energy crisis in both the UK and now Australia, with the energy sector gaining 3.1 per cent. Origin Energy Ltd (ASX: ORG) reversed yesterday’s weakness, gaining 2.7 per cent after investment bank Barrenjoey increased its price target following updated earnings guidance. Origin and Woodside companies have been central to the 52nd straight month of Australian trade surpluses, with this month hitting $10.7 billion.
ASX Ltd’s 1st female CEO
Australian trade data was much stronger than the $9.3 billion forecast by experts, who subsequently blamed a 27 per cent jump in travel services in April.
The REA Group Ltd (ASX: REA) share price couldn’t overcome the broader technology selloff, falling 3.3 per cent, despite flagging the potential for acquisitions as the company considered new verticals including home insurance.
The ASX Ltd (ASX: ASX), which is the company that runs Australia’s largest stock exchange, has anointed its first female CEO. Helen Lofthouse got the top job at a difficult time for the company. Lofthouse is being promoted from head of markets and will be forced to deal with the ASX’s struggling transition to blockchain technology.
Wesfarmers sees weakness ahead
Wesfarmers Ltd (ASX: WES) shares traded 0.6 per cent lower on Wednesday, with management flagging weakness in the newly acquired API healthcare and pharmaceuticals business due to supply chain issues.
Wesfarmers also highlighted inflation and commodity prices as a potential hit to production, and expect heightened inventory and potentially weaker margins in the short term. Remember, Wesfarmers is the owner of Bunnings, Officeworks and Kmart.
Goat milk and infant formula business Bubs Australia Ltd (ASX: BUB) shares remain strong, gaining 6 per cent, after confirming their first shipment to the US will occur on June 9.
Microsoft cuts guidance
It was another positive move for global markets overnight, which should bode well for the ASX 200 on Friday.
The Nasdaq gained 2.7 per cent while the S&P500 and Dow Jones were up 1.8 and 1.3 per cent respectively, after a rally in Microsoft Corp (NYSE: MSFT) shares spurred the market.
Microsoft’s stock price gain of 0.8 per cent came despite a cut to its fourth-quarter guidance. Microsoft’s revenue is expected to be around $1 billion, or 2 per cent lower, on the back of strength in the US Dollar.
It was the opposite story for computer giant Hewlett Packard (NYSE: HPE), which fell more than 5 per cent after reporting a US$250 million quarterly profit. HP flagged a US$126 million hit on their Russian operations. That said, HP’s revenue was solid, but margins shrank, with both computing and storage sales flat or marginally lower on 2021 levels as spending on hardware slows.
In a sign that high prices are hurting demand, the demand for new car sales hit ‘recessionary’ levels, falling to 13 million in May. First-time jobless claims fell 11k to 200k, while labour productivity remains sharply negative.
