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Iron ore hits S&P/ASX 200 (INDEXASX:XJO): AMA Group Ltd (ASX:AMA) tumbles on raising

Both benchmarks weakened into the close, as both the S&P/ASX200 (INDEXASX: XJO) and All Ordinaries (INDEXASX: XAO) fell 0.2% on Friday.

The weakness was driven by the materials sector, which fell 1%, driven lower by BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Ltd (ASX: FMG), down 1.2% and 2.4%.

The highlight was the utilities sector which gained 1.1%.

Iron ore remains under pressure as weakness in the Chinese economy continues. Smash repairer AMA Group Ltd (ASX: AMA) fell 50% after the company resumed trading following a $55 million equity raising, with pressure continuing to grow.

AMA Group Ltd (ASX: AMA)

It was a similar story for Platinum Asset Management Ltd (ASX: PTM) as shares fell 4.4% following a report from broker Barrenjoey that suggested the business would face continued competitive pressure. Across the weak both benchmarks fell 1.7%, with energy the only positive contributor, up 0.6%.

The materials sector fell 3%, despite Liontown Resources Ltd (ASX: LTR) topping the market up 16.4%.

US markets gain on Apple Inc (NASDAQ:AAPL): Docusign Inc (NASDAQ:DOCU) improves

All three US benchmarks finished the week lower, with Dow Jones Industrial Average (INDEXDJX: .DJI) down 0.7%, the S&P 500 (INDEXSP: .INX) 1.3% and the Nasdaq Inc (NASDAQ: NDAQ) 1.9%.

This was despite a positive end to the week, in which the Dow Jones added a 0.2% gain on Friday.

Among the key drivers was some settling in Apple Inc (NASDAQ: AAPL) shares, which gained 0.4% after a week of sustained losses.

Apple Inc (NASDAQ: AAPL)

The rally came after NY Fed President delivered an address suggesting he was comfortable with the current level of interest rates.

Shares in digital document platform Docusign Inc (NASDAQ: DOCU) fell more than 3% despite the company topping earnings expectations and increasing guidance for the year ahead.

There was positive news for Australian grocers after Kroger Co (NYSE: KR) added 3.1%, despite a downbeat report.

The ARM IPO is nearing settlement, with management now expecting an 11% revenue growth in the year ahead.

GDP slows but recession averted

News that both Russia and Saudi Arabia would be cutting production and thus sending oil prices higher stands out as an unexpected drag on an economy that appeared resilient in the face of aggressive rate hikes.

As inflation recedes, the threat of oil putting a handbrake on growth is becoming a heightened concern.

The weakness in China and the impact of rates was evidenced by the slowing domestic economic growth rate, which fell to 2.1% despite being supported by an incredible surge in inflation. Consumer spending is buckling in the face of impact of cost of living increases.

This week was all about capital raisings, with the likes of Orora Ltd (ASX: ORA) raising capital for aggressive acquisitions, AMA simply to boost operations and finally the growing energy in the lithium and materials sector.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author or their clients may have a financial interest in some of companies or securities mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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