The S&P/ASX 200 (ASX: XJO) fell 0.3% on Tuesday despite being buoyed by a seven-year high in the oil price.
All sectors barring consumer staples and healthcare were lower, with the latter gaining 0.9% behind a 1.8% improvement in the CSL Limited (ASX: CSL) share price.
CSL’s outperformance came after management confirmed its previous profit guidance at its AGM, supported by a 2-5% increase in revenue. The company is facing higher costs but has a history of beating expectations.
Westpac’s write-down
Shares in Westpac Banking Corp (ASX: WBC) fell 1.7%, dragging the financial sector down 0.4% after announcing a $1.3 billion write-down on its institutional banking division and technology assets.
Iron ore jumps
Iron ore has soared back in the last three weeks, gaining 45% after another 9% jump overnight as Chinese mills restock after a quiet holiday period. BHP Group Ltd (ASX: BHP) fell 0.3% on Tuesday while Rio Tinto Limited (ASX: RIO) gained 0.4%.
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Newcrest’s bold plan
Newcrest Mining Ltd (ASX: NCM) has outlined an ambitious plan to expand its copper production by 37% over the coming years along with the expansion of three high potential mines; copper remains a key input into batteries of all kinds.
The group expects to invest as much as $3 billion as it doubles down on gold, using its well-timed Canadian purchase of Red Chris, expansion at Lihir and Cadia to boost growth and reduce its overall cost base.
Costs are expected to fall another 50% over the next 10 years due to the benefits of scale.
Business confidence buoyed, coal futures soaring,
Impending ends to lockdowns in Victoria and New South Wales have seen business confidence jump 19 points to a positive result of 13, primarily on the back of clear roadmaps delivered in the Southern states. Wholesale trade, retail and construction were the key contributors.
Plenti share price jumps on new loans
Fintech lender Plenti Group Ltd (ASX: PLT) continues to disrupt the major ASX banks with shares gaining 5.8% after management confirmed it expects to reach its $1 billion loan book by December, ahead of schedule.
Profit reached $256 million in the second quarter of FY22, a 140% increase, with another monthly record of $95 million in new loans in September, with auto and renewable loans central to this.
Elsewhere, shares in Vicinity Centres (ASX: VCX) fell 0.3% as the group announced the acquisition of Gold Coast’s Harbour Town outlet shopping centre for $358 million as it seeks to diversify its core Sydney and Melbourne asset base.
ASX 200 today
The ASX 200 is poised to open in the green on Wednesday despite a negative lead from US markets overnight, with Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) shares making headlines. To find out more, check out today’s US stock market report.