The S&P/ASX 200 (ASX: XJO) managed to reverse the prior day’s gains, falling 1% on Tuesday after US bond yields jumped on further central bank commentary.
This coincided with agreement on further bans on Russian oil imports which sent the oil price above US$120 per barrel.
Every sector was lower, led by technology and financials, which fell 2% each behind weak performances from National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia Ltd (ASX: CBA).
Weakening building approvals, which fell 2.4% in April, along with comments from major bank CEOs around the growing risks in the construction sector, were enough to hit market sentiment.
The utilities and staples sectors outperformed, as did energy with the likes of Beach Energy Ltd (ASX: BPT) and Paladin Energy Ltd (ASX: PDN), which gained 5% and 2%, respectively.
Star ‘unsuitable’
It was also bad news for Star Entertainment Group Ltd (ASX: SGR) which fell another 2% after the NSW investigation into potential legal breaches found the group ‘unsuitable’ to hold a casino license.
China release sends materials higher
The Chinese government has laid out a 50 point plan to stimulate the economy post the damaging capital city lockdowns, with streamlined building approvals and incentives for electric cars among them.
This comes as Beijing cases fell to just 100 and manufacturing in the city was set to be allowed from 1 June.
Interestingly, China’s manufacturing PMI which reports on the entire economy fell to just 49.6 in April, strong than expected.
The secondary beneficiary of the Chinese policy changes was materials, with Mineral Resources Limited (ASX: MIN) up 1.8% and Fortescue Metals Group Limited (ASX: FMG) jumped 1.3%.
ResApp in Pfizer deal
Shares in microcap healthcare company ResApp Health Ltd (ASX: RAP) entered a trading halt after announcing it had received a bid from giant Pfizer (NYSE: PFE) to take over all shares in the company.
A2 Milk faces challenge
A2 Milk Company Ltd (ASX: A2M) took a breather, gaining just 0.6%, as investors identified the challenge of having its unique product approved in the US market in a short period of time to capitalise on the current shortage.
ASX 200 today
Looking ahead, the ASX 200 is tipped to edge higher this morning despite a slightly negative lead from US markets overnight. To find out more, check out my US stock market report.