ASX200 Afternoon Report April 26th 2022

A sea of red as the ASX200 plunged 142 points today to be trading at 7330.60, with all sectors losing ground on the day.

The Energy and Mining sectors have led the wipe-out over fears for the outlook for crucial commodity and energy exports as the Covid-19 lockdown in Shanghai enters the fourth week and looks set to spread to Beijing after a mass testing blitz.

Mineral Resources (MIN) plunged 11% to $54.00. Fortescue Metals (FMG) fell 6.7% to $19.80. BHP Group (BHP) fell 5.24% to $45.93 and is now 14.5% below last week’s high. Rio Tinto (Rio) lost 3.57% to $109.58.

The large coal mining names were also savaged. Whitehaven Coal (WHC) fell 7.25% to $4.35, Coronado Coal (CRN) fell 5.36% to $2.12, while New Hope Coal (NHC) fell 2.71% to $3.23.

China's pursuit of Covid Zero and associated mobility restrictions have sent the Crude oil price back below $100, a move that has weighed on the oilers.

Beach Energy (BPT) fell 3.47% to $1.60, Santos (STO) fell 4.5% to $7.82, while Woodside Petroleum (WPL) fell 5% to $30.44, compounding an already rough day by reporting an earnings miss.

After a 5% fall last week, the IT sector has had another messy day, falling a further 1.73%.

EML (EML) payments fell 38% to $1.70 after issuing a profit warning on "operational execution issues" in Europe. Sezzle (SZL), dropped 7.8% to $0.89c, Tyro Payments (TYR) fell 6.8% to $1.29, Zip (ZIP) fell 2.73% to $1.07, retesting its March 2020 $1.05 low. Wisetech Global (WTC) fell 2.8% to $44.55. Life 360 (360) and Block (SQ2) both bucked the trend to close higher by 1.5% and 2%, respectively.

A tough day for the big banks ahead of the release of Q1 Australian inflation data tomorrow, which is expected to see the RBA's preferred measure of inflation rise above its 2-3% band for the first time since 2010.

National Australia Bank (NAB) fell 1.45% to $32.65. Westpac (WBC) fell 1.3% to $23.89, ANZ fell 0.6% to $27.61, Commonwealth Bank (CBA) fell 0.4% $104.95.

Carnage also in Lithium stocks. Galan Lithium (GLN) fell 10.4% to $1.73. Liontown Resources (LTR) fell 7.8% to $1.45, Allkem (AKE) fell 6.90 to $11.88, while Iluka Resources (ILU) fell 6.6% to $10.45.

The AUDUSD is trading higher at .7225 after Chinese authorities pledged more support for their economy and the Chinese currency, the RMB strengthen for the first time in six sessions.

Source Tradingview. The figures stated are as of April 26th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.