It was relatively quiet on the ASX on Monday with traders eyeing the Reserve Bank of Australia’s latest interest-rate decision, to be announced today (and a public holiday in most states dampening activity further).
The market slipped close to three-month lows with the benchmark S&P/ASX 200 (INDEXASX: XJO) index down 15.4 points, or 0.2%, at the close to 7033.2, and the broader All Ordinaries (INDEXASX: XAO) index also off 0.2%, in its case 14.2 points, to 7,235.5.
It’s the first cash-rate decision under new RBA governor Michele Bullock, and the consensus view of economists is that the RBA will keep the official rate where it is, for the fourth consecutive month.
Among the big banks, National Australia Bank Ltd. (ASX: NAB) retreated 11 cents, or 0.4%, to $28.96; Westpac Banking Corp (ASX: WBC) eased 2 cents to $21.13; ANZ Group Holdings Ltd (ASX: ANZ) lost 17 cents, or 0.7%, to $25.49 Commonwealth Bank of Australia (ASX: CBA) gave up 12 cents to $99.85.
National Australia Bank Ltd. (ASX: NAB) share price
Biotech leader CSL Limited (ASX: CSL) walked back $4.44, or 1.8%, to $246.36, part of general weakness in the healthcare sector, which was weighed down by a decline in global sleep breathing device heavyweight Resmed CDI (ASX: RMD), which fell 67 cents, or 2.8%, to $22.93 after its shares were downgraded by influential analyst Wolfe Research.
Consumer staples stocks – considered sensitive to interest-rate changes – were also under pressure, led by Woolworths Group Ltd (ASX: WOW), which fell 45 cents, or 1.2%, to $36.87, and Coles Group Ltd (ASX: COL), which slid 9 cents, or 0.6%, to $15.47.
On the bulk mining front, BHP Group Ltd (ASX: BHP) gained 35 cents, or 0.8%, to $44.60; Rio Tinto Ltd (ASX: RIO) lifted $1.29, or 1.1%, to $114.84; and Fortescue Metals Group Ltd (ASX: FMG) appreciated 14 cents, or 0.7%, to $21.06.
In energy, Woodside Energy Group Ltd (ASX: WDS) lost 24 cents, or 0.7%, to $36.25; Santos Ltd (ASX: STO) eased 3 cents, or 0.4%, to $7.87; and Brazilian-based producer Karoon Energy Ltd (ASX: KAR) advanced 6 cents, or 2.3%, to $2.70.
Shine comes off coal
Coal shipments fell more than 20% in August, recording their lowest monthly level out of the Port of Newcastle, the world’s busiest coal export terminal, in at least five years.
Australia is on track for total coal exports to be about 2% lower in 2023, compared to 2022.
In stock news, US/Australian thermal and metallurgical producer Coronado Global Resources Inc (ASX: CRN) sank 8.5 cents, or 4.4%, to $1.86 after revising its full-year production guidance lower following disruptions at its Buchanan mine in Virginia, US.
Coronado Global Resources Inc (ASX: CRN) share price
Elsewhere in coal, Whitehaven Coal Ltd (ASX: WHC) gained 8 cents, or 1.1%, to $7.19; New Hope Corporation Ltd (ASX: NHC) added 6 cents, or 1%, to $6.41; Yancoal Australia Ltd (ASX: YAL) lifted 6 cents, or 1.2%; and Stanmore Resources Ltd (ASX: SMR) gained 5 cents, or 1.4%, to $3.75.
In lithium, Allkem Ltd (ASX: AKE) slipped 5 cents, or 0.4%, to $11.71, while fellow producer Pilbara Minerals Ltd (ASX: PLS) retreated 9 cents, or 2.1%, to $4.21. IGO Ltd (ASX: IGO), which mines nickel as well as lithium, rose 7 cents, or 0.6%, to $12.73; and Mineral Resources Ltd (ASX: MIN), which produces iron ore and lithium, slid 10 cents, or 0.2%, to $67.53.
Lithium project developer Core Lithium Ltd (ASX: CXO) surged 2.5 cents, or 6.2%, to 43 cents, while US-based Piedmont Lithium Inc (ASX: PLL) jumped 3.5 cents, or 5.7%, to 65.5 cents.
Graphite producer Syrah Resources Ltd (ASX: SYR) advanced 4 cents, or 7.8%, to 55 cents, after flagging improved demand for graphite from its Balama project in Mozambique in the most recent quarter.
Syrah Resources Ltd (ASX: SYR) share price
In industrials, communications platform Symbio Holdings Ltd (ASX: SYM) surged 39 cents, or 14.8%, to $3.03 after Aussie Broadband Ltd (ASX: ABB) made a $3.15 takeover bid late on Friday.
In the wake of that news, telco Superloop Ltd (ASX: SLC) allowed its own bid for Symbio to lapse, and saw a gain of 0.5 cents, or 0.8%, to 67 cents on Monday.
Aussie Broadband eased 3 cents, or 0.7%, to $4.08.
Bond yields near 16-year high
In the US, the 30-stock Dow Jones Industrial Average (INDEXDJX: .DJI) declined 74.15 points, or 0.2%, to 33,433.35, while the broader S&P 500 (INDEXSP: .INX) index inched 0.3 of a point higher to 4,288.39 and the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) index gained 88.45 points, or 0.7%, to close at 13,307.77, marking its fourth consecutive positive day.
But the bigger news in the US markets is in bonds, where yields continued their rise.
The 10-year Treasury note yield rose 12 basis points to close at 4.69%, approaching a 16-year high, while the 2-year yield added 7 basis points to 5.12%, narrowing the two/ten curve inversion to 42 basis points.
In commodities, gold is down US$19.52, or 1.1%, to US$1,828.97 a barrel; the global benchmark Brent crude oil grade is US$1.49, or 1.6%, weaker at US$90.71 a barrel; and US West Texas Intermediate crude slipped 17 cents, or 0.2%, to US$88.65 a barrel.
The Australian dollar is buying 63.65 US cents this morning, down from 64 cents at the weekend.