Global sharemarkets were shaken by the news that Russia had finally attacked various targets in Ukraine, all but declaring war on the nation. Whilst the implications are likely to be localised, the impact on the oil price and its role within the global economy will be felt far and wide.
In a positive for patient investors, gold bullion has reached a 12-month high, exceeding AUD$2,700.
The S&P/ASX 200 (ASX: XJO) was dragged 3% lower, with armed conflict simply the latest reason for investors to de-risk.
Appen share price tanks
The ASX technology sector was the worst-performing, with long-time growth favourites Appen Ltd (ASX: APX) and Life360 Inc (ASX: 360) falling more than 28% each after delivering underwhelming earnings updates.
In the case of Appen, 24% revenue growth was offset by concerns that Apple’s privacy changes will impact the company’s ability to market in the future. Life360 on the other hand reported a 40% increase in revenue but doubled its loss from 2020.
In more positive news, shares in Cimic Group Ltd (ASX: CIM) surged by 33% after majority shareholder Hochtief flagged a plan to acquire the remaining shares they don’t already own.
Qantas narrows loss
Qantas Airways Limited (ASX: QAN) appears to be finally turning the corner, and will benefit from recent border openings, with revenue in the first half up 31% to $3.1 billion and its loss shrinking to $456 million from $1.06 billion in the year prior. Qantas shares finished 5% lower.
Ramsay outperforms on solid earnings
Shares in Ramsay Health Care Limited (ASX: RHC) were among the few winners on the day, gaining 0.2% after delivering a better than expected earnings result.
Despite being impacted by surgical restrictions in each of its key markets, the company reported a 1% increase in revenue and 21% improvement in profit, with a likely tailwind to come as restrictions continue to be removed in Australia and the UK.
Qube shows its resilience
Shares in Qube Holdings Ltd (ASX: QUB) also finished 0.4% higher, one of just a few to do so, after the company reported a 29% jump in revenue and 13% improvement in earnings.
Management cited the significant diversification across its customer base, lack of any dominant counterparties and a spread of commodities behind the 50% leap in profit to $72 million. The group has overcome supply chain issues and looks well placed for the future.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher this morning after all three US stock markets unexpectedly staged a recovery overnight. The Nasdaq was the standout performing, rallying 3.3%. To find out more, check out my US stock market report.