The local share market weakened again on Wednesday, with the All Ordinaries (INDEXASX: XAO) down 0.7% and the S&P/ASX 200 (ASX: XJO) falling 0.8% as seven sectors fell by more than 1%.
The rare highlight was the energy sector, which gained 1% on the back of the oil price surging above US$90 per barrel and boosting the likes of Woodside Energy Group Ltd (ASX: WDS), up 1.4%, and Santos Ltd (ASX: STO), which finished 1% higher.
Santos Ltd (ASX: STO)
The weakness came despite a stronger than expected quarterly GDP result which saw the economy grow at 0.4% in June. This converts to a 2.1% annual growth rate, well ahead of the 1.8% expected.
That said, the currency continues to tank on Chinese growth concerns, with the AUD buying just 63 US cents. Exports were a key contributor to the growth result.
Orora Ltd (ASX: ORA) sinks after capital raising
Shares in packaging manufacturer Orora Ltd (ASX: ORA) fell 18% after restarting trading following its $1.3 billion capital raising.
Orora Ltd (ASX: ORA)
While the acquisition is expected to accretive the market sold off on the pricing of the new shares on issue. The NSW government reassured investors that the $2.7 billion royalty on coal production will not hit jobs or investment in the sector, but highlights a growing trend towards extracting higher taxes from the most profitable sectors.
Macquarie Group Ltd (ASX: MQG) retreated 3.8% after the company flagged a slowing in the realisation of asset sales within its green banking business, but still remains on track for the forecast results.
Magellan Financial Group Ltd (ASX: MFG) flagged another $300 million in net outflows during August, with management still unable to stem the bleeding despite improving underlying fund performance.
US markets stall on oil price
All three US benchmarks finished weaker on Wednesday, as higher oil prices signalled a growing inflationary threat.
News that key OPEC+ partners were cutting production sent the oil price higher, which many believe will force another rate hike by central banks. That said, this would do little to crimp demand any further.
Dow Jones Industrial Average (INDEXDJX: .DJI) finished 0.6% lower, the S&P500 (INDEXSP: .INX) 0.7 and the Nasdaq Inc (NASDAQ: NDAQ) underperformed, falling 1.1%.
Technology sank hardest as higher bond yields impacted on valuations. The US trade deficit widened in July to US$65 billion, amid growing data that suggests a gradual weakening of the economy.
Both NVIDIA Corp (NASDAQ: NVDA) and Apple Inc (NASDAQ: AAPL) fell by more than 3% as they are sensitive to bond yield movements.
Zscaler Inc (NASDAQ: ZS) was one of just a few companies to report, flagging an extension in the time required to close deals and noting lower earnings expectations.