Disappointing economic data from China and revised US interest rate views dragged the Australian share market lower on Wednesday. The benchmark S&P/ASX 200 (INDEXASX: XJO) index share price fell 21.7 points, or 0.3 per cent, to 7393.1, with five of the 11 sub-sectors retreating. The broader All Ordinaries (INDEXASX: XAO) share price shed 24.6 points, also 0.3 per cent, to 7,622.
The market was already dealing with an overnight lead from Wall Street that showed lowered expectations that the Federal Reserve will cut rates in March, and it wasn’t in the mood for a tepid number from Beijing. China’s economy grew 5.2 per cent in the fourth quarter from a year earlier, official data showed, missing analysts’ expectations. The result, which was largely driven by government stimulus, beat an official forecast of a roughly 5 per cent growth, but not the market’s view.
A “miss” from the Chinese economy does not usually go down well in the resources world, but some miners did well. Among the bulks, BHP Group Ltd (ASX: BHP) share price added 7 cents to $46.57; and Fortescue Ltd (ASX: FMG) share price gained 13 cents, or 0.5 per cent, to $26.78; but Rio Tinto Ltd (ASX: RIO) share price eased 12 cents, to $126.54. Champion Iron Ltd (ASX: CIA) share price strengthened 4 cents, or 0.5 per cent, to $8.06, while iron ore royalties player Deterra Royalties Ltd (ASX: DRR) share price was up 19 cents, or 3.9 per cent, to $5.04.
BHP share price
IGO Ltd (ASX: IGO), which mines nickel and lithium, share price gained 1 cent to $7.46, but Mineral Resources Ltd (ASX: MIN), which produces iron ore as well as lithium, share price lost 37 cents, or 0.6 per cent, to $59.47.
Lithium producer Arcadium Lithium CDI (ASX: LTM) share price advanced 2 cents, to $8.28, but fellow producer Pilbara Minerals Ltd (ASX: PLS) share price dropped 7 cents, or 1.9 per cent, to $3.53, and lithium project developer Liontown Resources Ltd (ASX: LTR) share price was down 2 cents, or 1.5 per cent, to $1.36.
Energy stocks tracked the lower crude oil price and was the worst performing sector, down 1.2 per cent. Woodside Energy Group Ltd (ASX: WDS) share price dropped 42 cents, or 1.4 per cent to $30.71; Santos Ltd (ASX: STO) share price fell 6 cents, or 0.8 per cent, to $7.63; Beach Energy Ltd (ASX: BPT) share price retreated 1.5 cents, or 1 per cent, to $1.545; and Brazilian-based producer Karoon Energy Ltd (ASX: KAR) share price walked back 4 cents, or 2.1 per cent, to $1.825.
Gold loses its shine
Gold producers were under the pump as the gold price continued to slide. Evolution Mining Ltd (ASX: EVN) share price plunged 65 cents, or 17.3 per cent, to $3.10, after production figures and guidance disappointed the market. Also on planet gold, Newmont Corporation CDI (ASX: NEM) share price lost $2.84, or 5 per cent, to $53.38; Northern Star Resources Ltd (ASX: NST) share price shed 57 cents, or 4.4 per cent, to $12.30; Bellevue Gold Ltd (ASX: BGL) share price was down 6 cents, or 4 per cent, to $1.43; De Grey Mining Limited (ASX: DEG) share price weakened 3.5 cents, or 2.9 per cent, to $1.155; Ramelius Resources Ltd (ASX: RMS) share price dropped 2.5 cents, or 1.6 per cent, to $1.51; Genesis Minerals Ltd (ASX: GMD) share price was down 3 cents, or 1.8 per cent, to $1.62; Gold Road Resources Ltd (ASX: GOR) share price shed 4.5 cents, or 2.6 per cent, to $1.66; and Perseus Mining Ltd (ASX: PRU) share price lost 5 cents, or 2.8 per cent, to $1.71.
Evolution Mining share price
In uranium, Namibia-based producer Paladin Energy Ltd (ASX: PDN) share price eased 2 cents, or 1.6 per cent, to $1.255; while Boss Energy Ltd (ASX: BOE) share price lost 4 cents, or 0.7 per cent, to $5.50. Rare earths producer Lynas Rare Earths Ltd (ASX: LYC) share price was down 18 cents, or 2.9 per cent, to $6.00; multi-commodity miner South32 Ltd (ASX: S32) share price retreated 12 cents, or 3.5 per cent, to $3.29; and copper player Sandfire Resources Ltd (ASX: SFR) share price lost 10 cents, or 1.5 per cent, to $6.55.
In coal, Whitehaven Coal Ltd (ASX: WHC) share price dropped 17 cents, or 2.1 per cent, to $7.87; New Hope Corporation Ltd (ASX: NHC) share price was down 13 cents, or 2.5 per cent, to $5.18; Yancoal Australia Ltd (ASX: YAL) share price softened 8 cents, or 1.5 per cent, to $5.25; and Stanmore Resources Ltd (ASX: SMR) share price eased 2 cents, or 0.5 per cent, to $4.02; but Coronado Global Resources Inc (ASX: CRN) didn’t get the memo, share price advancing 3.5 cents, or 2.1 per cent, to $1.705.
Among the big banks, Westpac Banking Corp (ASX: WBC) share price retreated 17 cents, or 0.7 per cent, to $22.90; Commonwealth Bank of Australia (ASX: CBA) share price shed 67 cents, or 0.6 per cent, to $112.33; ANZ Group Holdings Ltd (ASX: ANZ) share price gained 2 cents, to $25.76; and National Australia Bank Ltd (ASX: NAB) share price added 1 cent, to $30.74. Biotech heavyweight Csl LTD (ASX: CSL) share price lifted $1.22, or 0.4 per cent, to $285.91.
Westpac share price
US consumer still spending
Retail sales data for December showed a very resilient US consumer, putting aggressive rate cuts from the Federal Reserve into doubt. Retail sales rose by 0.6 per cent from November; economists polled by Dow Jones Industrial Average (INDEXDJX: .DJI) had estimated a 0.4 per cent month-to-month increase.
The 30-stock Dow Jones Industrial Average share price slipped 94.45 points, or 0.3 per cent, to close at 37,266.67, while the broader S&P 500 (INDEXSP: .INX) share price fell 26.77 points, or 0.6 per cent, to 4,739.21, and the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) index share price gave up 88.72 points, also 0.6 per cent, to 14,855.62.
Bond yields continued their uptick, with the US 10-year yield share price gaining 4.2 basis points, to 4.109 per cent, and the 2-year yield lifting 13.9 basis points to 4.363 per cent.
Gold share price tracked US$21.99 lower, down 1.1 per cent to US$2,006.36 an ounce, while the global benchmark Brent crude oil grade share price slid 20 cents, or 0.3 per cent, to US$78.09 a barrel, and US West Texas Intermediate crude strengthened 16 cents, or 0.2 per cent, to US$72.56 a barrel.
The Australian dollar is buying 65.51 US cents this morning, down from 65.58 cents at the ASX close on Wednesday.
