News | Market Wraps
Evening Wrap: ASX 200 slumps to worst week in 8 months as investors bail out on US interest rate uncertainty
The S&P/ASX 200 closed 101.2 points lower, down 1.24%.
Mentioned
The S&P/ASX 200 closed 101.2 points lower, down 1.24%.
For the week, the XJO finished down 229 points or 2.8% lower, 3.4% from its intraweek high and just 0.2% from its intraweek low. That was its worst weekly performance since April. Ouch!
It wasn't all doom and gloom today, at least. Unlike yesterday's comprehensive bashing, two major ASX sectors actually snuck in gains today – albeit both have a significant energy skew. Resources stocks, also, weren't terrible.
The rest? Well...Click/scroll through for the usual reporting of the major sector and stock-specific moves, the broker responses to them, as well as all of the key upcoming economic data in tonight's Evening Wrap.
Also, I have detailed technical analysis on US Risk-free Bond Yields and the US Dollar Index in today's ChartWatch.
But before we do – What do you think will influence the ASX in 2025, and who will win big? Get first access to top picks, prediction, and exclusive expert insights for 2025, by having your say in Livewire’s Outlook Series Survey. How valuable are the results? Well, our readers’ stock picks delivered, big: +20% on ASX stocks, +25% on ETFs! Complete the quick survey.
Let's dive in!
Today in Review
Fri 20 Dec 24, 4:56pm (AEST)
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
| ASX 200 | 8,067.0 | -1.24% |
| All Ords | 8,317.1 | -1.16% |
| Small Ords | 3,039.2 | -0.91% |
| All Tech | 3,766.3 | -0.74% |
| Emerging Companies | 2,220.5 | -0.42% |
Currency | ||
| AUD/USD | 0.6225 | -0.22% |
US Futures | ||
| S&P 500 | 5,849.5 | -0.33% |
| Dow Jones | 42,265.0 | -0.22% |
| Nasdaq | 20,984.5 | -0.61% |
Name | Value | % Chg |
|---|---|---|
Sector | ||
| Utilities | 8,882.8 | +1.54% |
| Energy | 8,292.8 | +1.24% |
| Information Technology | 2,713.1 | +0.17% |
| Real Estate | 3,779.5 | -0.37% |
| Industrials | 7,590.7 | -0.44% |
| Materials | 16,100.5 | -0.55% |
| Consumer Staples | 11,668.9 | -0.61% |
| Health Care | 44,367.4 | -0.84% |
| Communication Services | 1,625.0 | -0.93% |
| Financials | 8,463.1 | -2.40% |
| Consumer Discretionary | 3,845.1 | -2.53% |
Markets
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 101.2 points lower at 8,067.0, 1.25% from its session high and just 0.20% from its low. In the broader-based S&P/ASX 300 (XKO), advancers lagged decliners by a dismal 80 to 203.
For the week, the XJO finished down 229 points or 2.8% lower, 3.4% from its intraweek high and just 0.2% from its intraweek low. That was its worst weekly performance since April. Ouch!
It wasn't all doom and gloom today, at least. Unlike yesterday's comprehensive bashing, two major ASX sectors actually snuck in gains today – albeit both have a significant energy skew. Utilities (XUJ) (+1.5%) was the best, as old-reliables like AGL Energy (ASX: AGL) (+2.2%), APA Group (ASX: APA) (+1.4%), and Origin Energy (ASX: ORG) (+1.3%), each did well.
Ironically in such a bad close to the week, this year’s worst performing sector, Energy (XEJ) (+1.3%), also rebounded. It was aided by a nice pop in Woodside Energy (ASX: WDS) (+1.9%) as investors processed yesterday’s news it had swapped some assets with Chevron to “simplify its portfolio and unlock long term value”. Uranium stocks were also generally higher – despite another dip in the uranium price overnight.
Resources (XJR) (-0.16%) were down, but it wasn’t a wholesale disaster…I suspect the plunge in the Australian dollar against the US dollar is helping there – check out today’s ChartWatch section below for more analysis on that item.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Wildcat Resources (WC8) | $0.225 | +$0.02 | +9.8% | -15.1% | -70.6% |
Karoon Energy (KAR) | $1.295 | +$0.065 | +5.3% | -4.4% | -36.2% |
Black Cat Syndicate (BC8) | $0.600 | +$0.03 | +5.3% | -1.6% | +135.3% |
Larvotto Resources (LRV) | $0.450 | +$0.02 | +4.7% | -23.1% | +508.1% |
Iperionx (IPX) | $4.60 | +$0.18 | +4.1% | +9.5% | +268.0% |
Chalice Mining (CHN) | $1.110 | +$0.03 | +2.8% | -18.4% | -36.8% |
AGL Energy (AGL) | $10.98 | +$0.24 | +2.2% | +1.9% | +20.1% |
Fortescue (FMG) | $18.20 | +$0.35 | +2.0% | +0.5% | -35.2% |
Woodside Energy Group (WDS) | $23.55 | +$0.45 | +1.9% | -3.9% | -24.1% |
Deep Yellow (DYL) | $1.075 | +$0.02 | +1.9% | -9.7% | +9.1% |
Beach Energy (BPT) | $1.355 | +$0.025 | +1.9% | +6.3% | -15.6% |
New Hope Corporation (NHC) | $5.00 | +$0.09 | +1.8% | +5.5% | -1.8% |
St Barbara (SBM) | $0.300 | +$0.005 | +1.7% | -14.3% | +53.8% |
Ampol (ALD) | $27.07 | +$0.42 | +1.6% | -5.5% | -22.6% |
APA Group (APA) | $7.15 | +$0.1 | +1.4% | +0.4% | -18.1% |
WA1 Resources (WA1) | $13.60 | +$0.19 | +1.4% | -12.3% | +59.4% |
Origin Energy (ORG) | $10.54 | +$0.14 | +1.3% | -2.4% | +27.3% |
Stanmore Resources (SMR) | $2.98 | +$0.03 | +1.0% | -2.6% | -22.8% |
Adriatic Metals (ADT) | $4.04 | +$0.04 | +1.0% | -4.3% | +20.6% |
Ora Banda Mining (OBM) | $0.650 | +$0.005 | +0.8% | -13.3% | +202.3% |
Santos (STO) | $6.40 | +$0.04 | +0.6% | -5.9% | -16.1% |
Boss Energy (BOE) | $2.28 | +$0.01 | +0.4% | -23.0% | -44.5% |
Viva Energy Group (VEA) | $2.56 | +$0.01 | +0.4% | -1.9% | -23.8% |
Deterra Royalties (DRR) | $3.74 | +$0.01 | +0.3% | +2.7% | -29.0% |
The best performing stocks from today’s best performing ASX sectors
The rest. Well, the rest was the rest. I suggest that’s enough bad news for the week. It's moving well into the evening your time on Friday 20 December…so let’s just ⏭️ to the next bit! 🍷🍻
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Bellevue Gold (BGL) | $1.105 | -$0.065 | -5.6% | -15.6% | -34.2% |
Wesfarmers (WES) | $69.56 | -$3.66 | -5.0% | -0.2% | +25.3% |
Catalyst Metals (CYL) | $2.50 | -$0.12 | -4.6% | -18.3% | +204.9% |
Capricorn Metals (CMM) | $6.39 | -$0.27 | -4.1% | -2.3% | +40.4% |
Bendigo and Adelaide Bank (BEN) | $12.77 | -$0.51 | -3.8% | -4.7% | +33.2% |
Commonwealth Bank of Australia (CBA) | $150.26 | -$5.73 | -3.7% | -3.8% | +35.9% |
Bank of Queensland (BOQ) | $6.48 | -$0.24 | -3.6% | -4.8% | +7.8% |
GQG Partners (GQG) | $2.17 | -$0.08 | -3.6% | +1.9% | +29.2% |
Credit Corp Group (CCP) | $15.80 | -$0.53 | -3.2% | -9.7% | +0.5% |
Nick Scali (NCK) | $14.77 | -$0.48 | -3.1% | +9.1% | +21.6% |
Fleetpartners Group (FPR) | $2.83 | -$0.09 | -3.1% | -11.8% | -7.2% |
Lovisa (LOV) | $29.00 | -$0.88 | -2.9% | +8.1% | +24.5% |
De Grey Mining (DEG) | $1.740 | -$0.05 | -2.8% | +14.5% | +32.3% |
Westgold Resources (WGX) | $2.89 | -$0.08 | -2.7% | +2.8% | +32.6% |
Generation Development Group (GDG) | $3.68 | -$0.1 | -2.6% | -1.9% | +129.2% |
Emerald Resources (EMR) | $3.39 | -$0.09 | -2.6% | -7.6% | +16.9% |
The Star Entertainment Group (SGR) | $0.190 | -$0.005 | -2.6% | -9.5% | -64.5% |
Judo Capital (JDO) | $1.785 | -$0.045 | -2.5% | -10.1% | +91.9% |
Kogan.Com (KGN) | $5.99 | -$0.15 | -2.4% | +22.7% | +13.7% |
Insurance Australia Group (IAG) | $8.28 | -$0.2 | -2.4% | +1.3% | +46.5% |
JB HI-FI (JBH) | $91.90 | -$2.21 | -2.3% | +3.6% | +80.1% |
ANZ Group (ANZ) | $27.94 | -$0.67 | -2.3% | -13.4% | +9.0% |
Macquarie Group (MQG) | $218.90 | -$5.11 | -2.3% | -4.6% | +20.7% |
National Australia Bank (NAB) | $36.37 | -$0.83 | -2.2% | -7.9% | +19.8% |
G8 Education (GEM) | $1.330 | -$0.03 | -2.2% | +3.5% | +17.7% |
The worst performing stocks from today’s worst performing ASX sectors
ChartWatch
US 10 Year T-Bond Yield
A Christmas cracker!
I alluded to the massive disconnect between the new Federal Reserve December Economic Projections and what the market was expecting in yesterday's Evening Wrap. Here’s a couple of pictures to demonstrate just how much it put markets on the back-foot.
The first, above, of the US 10-year T-bond Yield, shows a steepening rise in one of the world’s key risk-free rate benchmarks. Pre-Fed, 4.38% vs post Fed 4.52%...and as bad as 4.595% last night.
Sure, the Fed cut rates by 0.25%, but the market took that on board and increased them by over 0.20%.
This recent rise in this chart undermines the stock market in several important ways…which I discuss in detail in a very pertinent article I wrote today about short selling.
In short: Stocks hate higher risk-free market yields. And that’s what they got this week.
We’re trend followers here in ChartWatch (I assume I have converted you as well!). So then, what do we think about this chart? What are the trends? Where is it most likely to go next?
And…extrapolating that out…what could it mean for stocks? 🤔
Using support and resistance in a yield chart is a bit pointless, but 4.74 will be interesting. We definitely don’t want to get above there 💥 .
Trend ribbons are more relevant in that they’re just giving us broader strokes as to general price direction. Ideally this one is trading back below the short term uptrend ribbon tout suite – or it’s probably going to get uglier for stocks.
US Dollar Index Futures (Front month, back-adjusted) ICE
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All hail King dollar!
Higher risk-free yields in the US means greater demand for the US dollar. That’s economics 101.
The market’s utter dismay over the Fed’s hawkish pivot this week is demonstrated in the massive jump in the US dollar index, which collates the relative performance of the US dollar against a basket of major global currencies. You will note (chart not shown) our own Aussie battler utterly dissolved against King Dollar this week.
Cancel that trip to the USA. I’m guessing that based on how your portfolio did this week there are now two reasons why you can’t afford it! 😭
A higher Greenback does create problems for the US economy, it makes the products and services of US companies far less competitive. That will likely have impacts on the US stock market. It does, however, help with inflation – and that will assist the Fed’s calculations.
For ASX-listed stocks, our exporters will be cheering developments here as most major commodities are priced in US dollars. Also, those companies that have substantial earnings in US dollars will be rubbing their hands in glee over the prospect of translating them back into zillions more Aussie pesos!
Economy
Today
CHN 1-yr & 5-yr Prime Rate
No change at 3.1% and 3.6% respectively as forecast
Later this week
Saturday
00:30 Core PCE Price Index November (+0.2% m/m and 2.9% p.a. forecast vs +0.3% m/m and 2.8% p.a. in October)
00:30 Personal Income & Personal Spending November (+0.2% m/m and +0.4% m/m in October & +0.5% m/m and +0.4% m/m in October respectively)
Latest News
Interesting Movers
Trading higher
+11.0% Peninsula Energy (PEN) - Continued positive response to yesterday's Commencement of Production at Lance Project
+9.8% Wildcat Resources (WC8) - No news, lithium carbonate futures are trading higher in China today
+7.7% Weebit Nano (WBT) - No news since yesterday's Appointment of Non-Executive Director, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up, a recent regular Feature in ChartWatch ASX Scans Uptrends list 🔎📉
+5.7% Novonix (NVX) - No news since yesterday's Trade Case Filed with US Govt over Chinese Graphite Exports
+5.3% Karoon Energy (KAR) - No news, share buyback in operation…
+4.5% Opthea (OPT) - No news, trying to hold bounce off long term uptrend ribbon
+4.3% Cettire (CTT) - Becoming a substantial holder
+4.1% Iperionx (IPX) - No news, rise is consistent with prevailing short and long term uptrends, a regular Feature in ChartWatch ASX Scans Uptrends list 🔎📈
+3.8% Ventia Services Group (VNT) - Ventia signs five-year strategic agreement with Telstra
+3.5% Codan (CDA) - No news, rise is consistent with prevailing short and long term uptrends, a regular Feature in ChartWatch ASX Scans Uptrends list 🔎📈
+3.4% Integral Diagnostics (IDX) - Merger Update and Refinancing of Debt Facilities
Trading lower
-20.7% Mesoblast (MSB) - What goes up…see yesterday's Mesoblast to be Added to Nasdaq Biotechnology Index and FDA Approves Mesoblast Ryoncil
-8.5% Clarity Pharmaceuticals (CU6) - No news since 18-Dec Novel FAP-targeted radiopharmaceutical, fall is consistent with prevailing short term downtrend, long term trend is transitioning from up to down, a recent regular Feature in ChartWatch ASX Scans Downtrends list 🔎📉
-6.4% Botanix Pharmaceuticals (BOT) - No news…
-5.6% Bellevue Gold (BGL) - 2024 Modern Slavery Statement, fall is consistent with prevailing short and long term downtrends, a recent regular Feature in ChartWatch ASX Scans Downtrends list 🔎📉
-5.2% Silex Systems (SLX) - No news, uranium price keeps falling, but the rest of the sector didn't really do much today…closed below long term uptrend ribbon ⚠️
-5.0% Wesfarmers (WES) - Agreement to sell Coregas
-4.6% Seek (SEK) - Court approves convening of Scheme Meeting for Xref acquisitionN
Broker Notes
Bega Cheese (BGA)
Retained at neutral at UBS; Price Target: $5.55 from $4.80
De Grey Mining (DEG)
Retained at buy at UBS; Price Target: $2.20
Data#3 (DTL)
Retained at overweight at Morgan Stanley; Price Target: $7.60 from $10.00
IGO (IGO)
Retained at neutral at Citi; Price Target: $5.70 from $5.30
James Hardie Industries (JHX)
Retained at neutral at Citi; Price Target: $56.00
Liontown Resources (LTR)
Upgraded to neutral from sell at Citi; Price Target: $0.60 from $0.75
Mineral Resources (MIN)
Retained at neutral at Citi; Price Target: $35.00 from $33.00
Monash IVF Group (MVF)
Retained at outperform at Macquarie; Price Target: $1.50
Nine Entertainment (NEC)
Retained at buy at Ord Minnett; Price Target: $1.60 from $1.70
Paladin Energy (PDN)
Retained at Citi; Price Target: $13.50 from $11.50
Retained at overweight at Morgan Stanley; Price Target: $10.50
Pilbara Minerals (PLS)
Retained at neutral at Citi; Price Target: $2.40 from $2.90
Patriot Battery Metals (PMT)
Retained at buy at Citi; Price Target: $0.50
Retained at buy at UBS; Price Target: $0.60
Readytech (RDY)
Initiated at buy at Ord Minnett; Price Target: $3.97
South32 (S32)
Retained at overweight at Morgan Stanley; Price Target: $3.90
Technology One (TNE)
Initiated at hold at Ord Minnett; Price Target: $28.44
Vault Minerals (VAU)
Retained at outperform at Macquarie; Price Target: $0.57
Veem (VEE)
Initiated at buy at Ord Minnett; Price Target: $1.90
Woodside Energy Group (WDS)
Retained at sell at Citi; Price Target: $23.00
Retained at neutral at E&P; Price Target: $29.50
Retained at neutral at Jarden; Price Target: $26.25 from $26.80
Retained at neutral at Macquarie; Price Target: $27.00
Retained at hold at Ord Minnett; Price Target: $27.50
Retained at outperform at RBC Capital Markets; Price Target: $34.00
Scans
Top Gainers
Code | Company | Last | % Chg |
|---|---|---|---|
| LM1 | Leeuwin Metals Ltd | $0.10 | +66.67% |
| QHL | Quickstep Holdings Ltd | $0.555 | +40.51% |
| BEL | Bentley Capital Ltd | $0.014 | +40.00% |
| IFG | Infocus Group Holdings Ltd | $0.024 | +33.33% |
| VMT | Vmoto Ltd | $0.074 | +32.14% |
Top Fallers
Code | Company | Last | % Chg |
|---|---|---|---|
| CSS | Clean Seas Seafood Ltd | $0.094 | -24.80% |
| PAM | Pan Asia Metals Ltd | $0.042 | -20.76% |
| MSB | Mesoblast Ltd | $2.42 | -20.66% |
| MDR | Medadvisor Ltd | $0.215 | -20.37% |
| SCP | Scalare Partners Holdings Ltd | $0.165 | -17.50% |
52 Week Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| QHL | Quickstep Holdings Ltd | $0.555 | +40.51% |
| BXN | Bioxyne Ltd | $0.023 | +15.00% |
| ERG | Eneco Refresh Ltd | $0.024 | +9.09% |
| SHG | Singular Health Group Ltd | $0.24 | +9.09% |
| BTC | BTC Health Ltd | $0.077 | +8.45% |
52 Week Lows
Code | Company | Last | % Chg |
|---|---|---|---|
| CSS | Clean Seas Seafood Ltd | $0.094 | -24.80% |
| PAM | Pan Asia Metals Ltd | $0.042 | -20.76% |
| SCP | Scalare Partners Holdings Ltd | $0.165 | -17.50% |
| 4DS | 4DS Memory Ltd | $0.05 | -16.67% |
| 8VI | 8VI Holdings Ltd | $0.04 | -16.67% |
Near Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| PCI | Perpetual Credit Income Trust | $1.17 | 0.00% |
| WVOL | Ishares MSCI World Ex Aust Minimum Volatility ETF | $41.91 | -0.43% |
| IPX | Iperionx Ltd | $4.60 | +4.07% |
| GCI | Gryphon Capital Income Trust | $2.05 | -0.49% |
| VVLU | Vanguard Global Value Equity Active ETF | $73.02 | -0.82% |
Relative Strength Index (RSI) Oversold
Code | Company | Last | % Chg |
|---|---|---|---|
| GRR | Grange Resources Ltd | $0.22 | -2.22% |
| CUV | Clinuvel Pharmaceuticals Ltd | $11.79 | -1.26% |
| AUI | Australian United Investment Company Ltd | $10.18 | -2.30% |
| SEK | Seek Ltd | $22.34 | -4.57% |
| DUG | DUG Technology Ltd | $1.285 | -1.91% |
