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Central bank chatter and commodities remain the centerpiece …

By on November 17, 2021 0

ASX200

It was a 2sd consecutive day in the red for the ASX200 on Wednesday, scoring a 6e day in the red from 8 sessions.

After falling 0.67% on Tuesday, the ASX200 lost 0.68% to end the day at 7,369.93.

Australia’s wage growth figures did not provide support, with falling commodity prices weighing down once again.

Bullish US retail sales figures had supported a bullish opening before the ASX200 reversed.

Commodities and banking stocks continued to weigh after pulling the ASX200 into the red on Tuesday.

Statistics

In the 3e quarter, wages rose 0.6% qoq against an expected increase of 0.5%. Wages had increased 0.4% in the previous quarter. Year on year, wages increased by 2.2%.

According to the ABS,

  • Private sector wages grew by 2.4% per year, while growth in the public sector continued to lag behind that of the private sector.
  • The annual growth rate returned to a more steady wage growth pattern for the September quarter, following labor market disruptions through 2020 and 2021.

Market movers

It was a mixed day for the banks. ABC in the lead with a drop of 8.07%, with ANZ and Westpac see losses of 2.04% and 1.67% respectively. NAB experienced a more modest loss of 1.10%, while Macquarie Group ended the day up 0.56%.

The publication of the Commonwealth Bank’s quarterly results weighed on the banking sector. While results were bullish, warnings of stiff competition weighing on margins sank CBA and the rest of the big-4s.

Commodities stocks had a bearish session. BHP Group and Fortescue Metal Group Ltd. ended the day with losses of 1.45% and 1.89% respectively. Rio Tinto decreased by 0.98%, while Newcrest Mining led the way, slipping 2.10%.

Other Asian markets

Elsewhere, it was a mixed session. The Nikkei 225 and Hang Seng joined the ASX200 in the red, with losses of 0.40% and 0.25% respectively. The CSI300 reversed the trend, which recorded a gain of 0.05%.

The day to come

It’s a particularly calm day ahead on the Australian economic calendar. There are no significant statistics from Australia or China to provide guidance.

On the monetary policy front, RBA Asst. Governor Ellis is due to speak, however, which will generate some interest.

Outside of the economic calendar, however, expect U.S. commodity prices and futures to influence.

Future

In futures markets, at the time of writing, the ASX200 was down 3 points.

For an overview of all of today’s economic events, check out our economic calendar.


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