There are few signs that the global selloff is slowing down, with a weak US lead on Friday contributing to another 1.2% fall on the S&P/ASX 200 (ASX: XJO) to start the week.
The threat of higher interest rates and inflation have now been compounded by news that the Chinese government had extended lockdowns in key capital cities, potentially adding further pressure to economic growth and supply chains.
The less cyclical businesses outperform, with staples and healthcare alongside energy, the only industries able to deliver a positive return; property and tech fell 4.1% and 3.2%, respectively.
CSL Limited (ASX: CSL) and Woolworths Group Ltd (ASX: WOW) were highlights, gaining 0.8% and 0.6% on an otherwise rough day.
Westpac reports
But the standout was Westpac Baking Corp (ASX: WBC), which gained 3.2% after delivering a $3.1 billion first half profit, a 71% jump on the prior half.
The result was driven by a resilient business bank, where earnings increased 36%, however, the consumer banking and mortgage division contracted by another 7%.
This coincided with a fall in the net interest margin from 1.98% to 1.85% due to the bank offering special rates in order to regain market share.
The bank continues to focus on cost cutting, dropping 4,000 staff, and delivered a 61 cent dividend, still well below the 94 paid in 2019.
TPG sells infrastructure
TPG Telecom Ltd (ASX: TPG) was another standout, with the group gaining 2.3% after announcing the sale of its extensive mobile and tower infrastructure business.
The group will receive $950 million from Canadian pension fund OMERS for 428 telecom towers and 809 rooftop installations that represent 21% of the group’s network.
Magellan out of tacos
Shares in Magellan Financial Group Ltd (ASX: MFG) were hit by global weakness in fund managers, with the company falling 8.4% after announcing the sale of its ‘non-core’ investment in taco fast food chain Guzman y Gomez.
Magellan’s 11% share in the group was sold for $140 million, a 36% return in less than 18 months, with capital likely to be paid back to shareholders.
The asset was purchased by Barrenjoey, the investment bank which Magellan also owns, and will be offered to clients of the firm.
ASX lithium shares retreat
Uncertainty in the outlook and pricing of battery materials continues to grow after comments from BHP Group Ltd (ASX: BHP) in the prior week.
ASX lithium miners were among the biggest detractors on Monday with Liontown Resources Limited (ASX: LTR) and Pilbara Minerals Ltd (ASX: PLS) falling 8.7% and 6.2%.
ASX 200 today
Looking ahead, the ASX 200 is expected to open lower this morning following another negative lead from US stock markets.
The sell-off continues, with the Dow Jones down 2.0%, the S&P 500 falling 3.2% and the Nasdaq slumping 4.3%. To find out more, check out my US stock market report.