There was little in the way of positive news on Monday, with the S&P/ASX 200 (ASX: XJO) ultimately capitulated to a lack of direction, gaining just six points to start the week.
Just four of the 11 sectors finished higher but among them were the ASX 200’s two biggest, being materials and financials, which gained 1.3% and 0.6%, respectively. BHP Group Ltd (ASX: BHP) continues to defy expectations, closing above $50 per share once again after gaining 2.3%.
Star CEO steps down
Shares in Star Entertainment Group Ltd (ASX: SGR) gained 0.3% despite CEO Matt Bekier announcing his resignation following revelations of potential breaches of regulations in the group’s casinos.
Bond yields spike
One of the more powerful trends in the market this week, ahead of an early Federal Budget, will be the movements in the government bond yield, an important input into valuations. The 10-year yield hit the highest point since 2014, ahead of the US, despite vastly different domestic conditions.
The ASX technology sector was sold off in response, down 2.7% behind significant falls in Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC), down 5.2% and 4.1%.
AMP closes sale to Macquarie
Shares in AMP Ltd (ASX: AMP) barely moved following confirmation that the sale of its $47 billion Global Equities and Fixed Income asset management division to Macquarie Group Ltd (ASX: MQG) had been completed.
The deal is immaterial to the AMP share price representing just $63 million plus a potential $75 million in performance-based settlements.
Qube sells development property
It was a similar story for Qube Holdings Ltd (ASX: QUB), which agreed to sell an option held over land in Beverage, on Melbourne’s Hume Freeway, to the Commonwealth Government which will seek to develop a rail freight terminal. The deal includes an option to buy back certain parcels of land for future development.
ASX delays CHESS replacement system, ASX gold miners struggle
Shares in the market operator ASX Ltd (ASX: ASX) gained 0.4% after the market was informed of a ‘strong likelihood of delay’ in the rollout of its CHESS replacement system that will leverage the benefits of the blockchain.
Meanwhile, once again, the operational risks of commodity producers were on display after Gold Road Resources Ltd (ASX: GOR) cut its dividend on a 19% fall in revenue due to production and St Barbara Ltd (ASX: SBM) cut production forecasts due to surging COVID cases; shares were down 4.4% and 3.3%, respectively.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher this morning following a positive lead from US stock markets overnight. To find out more, check out my US stock market report.