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The local sharemarket is weaker for a second straight day on Tuesday after suffering its worst daily loss in five weeks on Monday. The ASX 200 is down 17 points or 0.25% to 6655 after falling nearly 80 points yesterday on a re-think that the US Fed Reserve will cut interest rates in July after better than expected jobs growth numbers late last week.

Materials are turning around from a 1.1% fall on Monday. The price of iron ore bounced 3% overnight and is helping boost major players Rio Tinto (RIO), BHP Group (BHP) and Fortescue Metals (FMG). All three miners are climbing more than 1%. Communication names are also among the most improved, Australia’s largest telco, Telstra (TLS) and Vocus Group (VOC) are both 0.8% higher.

Consumer stocks are also rising despite a weaker consumer confidence reading for the previous week, following the RBA cutting interest rates for a second straight month in July. Domino’s Pizza (DMP) is up 3% while Breville Group (BRG) is 3.9% higher. Supermarket giant Coles Group (COL) is also advancing 1.3%.

The gains for the materials, communications and consumer sectors are being offset by losses particularly in financials, healthcare and energy. The major banks are among the largest drags on the broader market with the big four and Macquarie Group all down between 0.4% and 0.9%. Buy-now pay-later firm Afterpay Touch (APT) is also one of main laggards, falling 4.4%.

The Australian Prudential Regulation Authority (APRA) has announced that banks will require to increase total capital by 3 percentage points over the next four years after initially requiring a lift of 4-5% over the same period. This is to cover for any potential major downturn, avoiding a situation like the 2008 financial crisis where banks around the world needed to be bailed out by the government.

Lithium miner, Altura Mining (AJM) is flat as it resumed from a three day trading halt, announcing it had signed a 5 year offtake agreement with a Chinese producer for 35,000 tonnes p.a starting this month but also terminated a 50,000t p.a agreement with another firm.

The Aussie Dollar has continued to head south against the USD and is buying 69.64 US cents around lunchtime. Business confidence fell in the month of June but conditions lifted from the previous reading in May.

So far, 1b units have exchanged hands, worth $1.6b with 469 stocks higher, 500 weaker and 342 unchanged.

Published by CommSec