ASX200 Afternoon Report August 10th 2022

The ASX200 trades 25 points lower at 7004 at 3.20 pm Sydney time.

The ASX200 is set to post its eighth consecutive daily close, 30 points on either side of the key 7000 level, as traders digest the latest round of earnings reports and brace for tonight's critical U.S inflation data.

Adding to trader inflation angst, while the market is expecting the sharp fall in gasoline prices to see the annual inflation rate fall to 8.7% (from 9.1% YoY), the core inflation rate, which strips out the volatile price categories of food and energy is expected to rise from 5.9% to 6.1% YoY.

While there are questions around which matters most to the market, core or headline inflation, there is little doubt that higher-than-expected prints will see equity markets sell-off as the interest rate market firms up the odds of a 75bp rate hike at the September FOMC meeting.

Weighing on the local tech sector, a 1.3% fall in the Nasdaq overnight as chipmaker Micron followed up on Nvidia's warning yesterday of lower demand for chips and falling revenues. As well as, an earnings miss from Computershare sent its share price 5.35% lower to $24.08. Elsewhere Life360 fell 6.25% to $4.79, Afterpay owner Block fell 5.43% to $117.37, and Megaport gave back a good chunk of yesterday's gains, falling 4.6% to $8.59.

The share price of Bio-Tech giant CSL fell 1.67% to $292.02 as it confirmed it had completed its acquisition of Vifor Pharma. Ansell fell 3.92% to $25.99; Sonic Healthcare fell 2.5% to $34.00; Cochlear fell 2% to $220.09, rounding out a tough day for healthcare stocks.

CBA shares have fallen 0.2% to $101.05, despite reporting a 9% increase in Full Year profits to $9.6bn. However, as was also witnessed after NAB's Q3 trading update yesterday, the market took a dim view of a contraction in CBA's Net Interest Margins (NIM), which fell 18bp to 1.9%. Elsewhere, ANZ added 3.3% to $23.45, Westpac added 1.45% to $22.22, NAB added 1.25% to $30.19 and Macquarie fell -0.7% to $176.88.

The share price of Coronado Global added another 6.25% today to $1.70 following its bumper earnings report yesterday. Fellow coal miner Whitehaven coal added 3.63% to $6.28, New Hope coal added 3.35% to $4.16, and Yancoal added 2.86% to $5.04. BHP fell 0.70% to $38.57 as its upside progress was capped by sellers operating ahead of resistance at $40.00. Rio Tinto added 0.2% to $99.57 and FMG added 0.53% to $19.06.

The share price of the beleaguered A2Milk has plunged by 7.63% to $4.72 along with its hopes of selling infant formula in the U.S after the Food and Drug Administration (FDA) deferred its application. The company is set to report Full Year earnings on August 29th.

Technically, we remain on the sidelines in the local bourse as U.S equity markets appear to have commenced a pullback.

Source Tradingview. The figures stated are as of August 10th, 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.