Miners gains led by Fortescue, Beijing moves boost iron ore: ASX closes 0.6% lower

The Australian sharemarket fell 0.6 per cent or 42 points lower at 7,382, sliding for the fourth straight day, its worst one-day fall in the past seven days as investors digested jobs data on the local bourse after an inflation jump on Wall St.

The XJO at its worst level was down 1.3 per cent amid a climb in bond yields and a slip in the Aussie dollar. Despite this, the index managed to gain some momentum with the help of the iron ore miners as the futures pointed to a brighter outlook. Adding to the optimism was news that Beijing may loosen their grip around rules on domestic bond issues by Chinese property developers according to media reports. Amid this, embattled property developer managed to rustle up the funds to meet its obligations after a 30 day period ended for bonds worth to value of $200 million. Asian markets are rallying as property shares surge on renewed hope.

Back in the winner’s corner was materials surging 2.3 per cent after being the worst performer yesterday but the winner the day before. Communication services marginally rose 0.8 per cent while the others closed in the red. The biggest pressure was information technology down 2.5 per cent with healthcare and energy falling near the 2.0 per cent mark.

Afterpay (ASX:APT) and CSL (ASX:CSL) both fell 2.4 per cent, Wesfarmers (ASX:WES) dropped 1.4 per cent, while Telstra and Woolworths bucked the trend closing 0.5 per cent higher.

Across the major banks, National Australia Bank (ASX:NAB) and Commonwealth Bank (ASX:CBA) both fell 1.6 per cent, ANZ Bank (ASX:ANZ) shed 0.2 per cent while Westpac (ASX:WBC) closed 0.1 per cent lower. Macquarie Group (ASX:MQG) fell 0.7 per cent.

Meanwhile, Fortescue Metals (ASX:FMG) took the limelight as the second best performing stock after chief executive Elizabeth Gaines gave a strong impression on funding over its clean energy unit, Fortescue Future Industries and list of green energy projects.

Join me for Stocks of the Hour as I cover the moves from Xero (ASX:XRO), Ramsay Health Care (ASX:RHC), and Chalice Mining (ASX:CHN).

Tonight, investors will look to Wall St without the bond market open for Veterans Day paying its respects to those who served in the US military while the job openings report is also due.

Local economic news

In October, the economy lost 46,300 jobs against a market expectation of a fall of 50,000 while the participation rate rose by 0.1 basis point to 64.7 per cent.

The shed in jobs followed September’s results where employment fell at 138,000 mainly due to the lockdowns seen in NSW and Victoria.

The unemployment rate rose by 0.6 basis points to 5.2 per cent around where it was before the Delta variant outbreaks as per the Australian Bureau of Statistics.

The participation rate saw its first increase since June this year reflecting a large increase in unemployment of 82,000 people.

Futures

The Dow Jones futures are pointing to a fall of 30 points.
The S&P 500 futures are pointing to a rise of 2 points.
The Nasdaq futures are pointing to a rise of 16 points.
The SPI futures are pointing to a fall of 47 points when the market next opens.

Best and worst performers

The best-performing sector was Materials, up 2.3 per cent. The worst-performing sector was Information Technology, down 2.5 per cent.

The best-performing stock in the S&P/ASX 200 was Chalice Mining (ASX:CHN) closing 9.6 per cent higher at $10.01, followed by shares in Fortescue Metals Group (ASX:FMG) and Regis Resources (ASX:RRL).

The worst-performing stock in the S&P/ASX 200 was Nearmap (ASX:NEA) closing 12.3 per cent lower at $1.89, followed by shares in Xero (ASX:XRO) and Zip Co (ASX:Z1P).

Asian markets

Japan’s Nikkei has gained 0.5 per cent.
Hong Kong’s Hang Seng has lost 0.1 per cent.
China’s Shanghai Composite has gained 0.7 per cent.

Commodities and the dollar

Gold is trading at US$1850.89 an ounce.
Iron ore is 3.2 per cent lower at US$89.50 a ton.
Iron ore futures are pointing to a rise of 5.3 per cent.
Light crude is trading $0.25 higher at US$80.31 a barrel.
One Australian dollar is buying 73.05 US cents.