ASX retreats on renewed risk aversion, closes 0.2% lower

The morning rally fizzled out on choppy trade after an optimistic finish from Wall St. The ASX 200 saw a high of 0.5 per cent before ending the session almost near session lows.

At the closing bell, the S&P/ASX 200 was 0.2 per cent or 15 points lower at 6,509.

Renewed recession fears weighed on investors ahead of Federal Reserve chairman Jerome Powell’s senate testimony. It comes after the Reserve Bank of Australia governor Philip Lowe said that the central bank expects inflation to hit seven per cent by year-end. Then investors learnt that inflation in the UK rose to 9.1 per cent in May from 9 per cent in April, the highest since 1982 which didn’t help with sentiment.

This saw defensive style sectors lead the gains. Utilities added 2.1 per cent, consumer staples, communication services and healthcare added up to 0.5 per cent each. The worst-performing sector was information technology, down 1.5 per cent. Energy managed to keep its gains, rising 1.5 per cent despite oil prices tumbling 6 per cent to a 6-week low.

The best-performing stock on the ASX 200 was Coronado Global Resources (ASX:CRN), closing 7.5 per cent higher at $1.65 while the worst-performer was St Barbara (ASX:SBM), closing 18.1 per cent lower at $0.93.

Macquarie Group (ASX:MQG) lost over 1 per cent to $162.34, leading the banks lower while Commonwealth Bank of Australia (ASX:CBA) shed the least by 0.1 per cent to $89.57.

Coal miners bucked the trend, following the news from the QLD government adding an extra three tiers of coal royalties. New Hope (ASX:NHC) rose 3.6 per cent to $3.40 and Terracom (ASX:TER) added 4.6 per cent to 57.5 cents, Bowen Coking Coal (ASX:BCB) soared 21.4 per cent to 25.5 cents and Coronado Global (ASX:CRN) closed 7.5 per cent higher to $1.64. To find out more about the rebound, join me here for “Coal miners rebound after QLD unveils new coal royalties”.

Iron ore miners rallied despite the fall in the iron ore futures. Rio Tinto (ASX:RIO) added 0.6 per cent to $104.50 while BHP Group (ASX:BHP) rose 0.2 per cent to $41.03.

Company news

IVE group’s (ASX:IGL) revenue momentum has continued throughout the second half of this current financial year. The full year revenue is expected to be around 14 per cent higher to $750 million compared to the last financial year. The media and marketing company has also reaffirmed its full year earnings guidance and renewal of finance facilities. Shares closed 6.9 per cent higher to $1.70.

The events leading to the termination of the proposed sale of Humm consumer finance to Latitude have caused the majority directors of Humm group (ASX:HUM) to resign. Shares closed 3.8 per cent lower to 50.5 cents. Shares in Latitude (ASX:LFS) closed 0.8 per cent lower to $1.24.

Michael Carroll, former National Australia Bank agribusiness leader and current board member of Rural Funds Management has been appointed by Incitec Pivot (ASX:IPL) to lead the structural separation from the Dyno Nobel explosives business. Mr Carroll has also been appointed chairman designate. Shares closed 2.4 per cent higher to $3.41.

Centuria Capital (ASX:CNI) has launched an unlisted, open-ended agriculture fund, Centuria Agriculture Fund, which is seeded with a $177 million glasshouse in Warragul, Victoria. Shares closed 2.3 per cent lower to $1.88.

Janus Henderson (ASX:JHG) has appointed Ali Dibadj as the new chief executive officer (CEO). Shares closed 2.8 per cent lower to $33.70.

Lumos Diagnostics (ASX:LDX) has also appointed Doug Ward as the new CEO. Shares closed 14.9 per cent lower to 12.5 cents.

St Barbara (ASX:SBM) announced a strategic review on the future direction of its Simberi mine in Papua New Guinea. Shares closed 18.1 per cent lower to 92.5 cents.

Futures

The Dow Jones futures are pointing to a fall of 305 points.
The S&P 500 futures are pointing to a fall of 42 points.
The Nasdaq futures are pointing to a fall of 133 points.
The SPI futures are pointing to a fall of 19 points when the market next opens.

Asian markets

Japan’s Nikkei has lost 0.4 per cent.
Hong Kong’s Hang Seng has lost 1.6 per cent.
China’s Shanghai Composite has lost 0.5 per cent.

Commodities and the dollar

Gold is trading at US$1,824.67 an ounce.
Iron ore is 3.2 per cent higher at US$115.90 a ton.
Iron ore futures are pointing to a fall of 5.4 per cent.
Light crude is trading $4.52 lower at US$105.00 a barrel.
One Australian dollar is buying 69.13 US cents.