Tech Stocks Drag Down the Market: The Australian share market experienced a decline, primarily driven by a 2.6% drop in tech stocks. This decline resulted in a 0.6% decrease in the S&P/ASX 200 index, which closed at 6,812.3. The underperformance of tech stocks was influenced by mixed results from US tech giants Microsoft and Alphabet.
Mixed Results from US Tech Giants: Microsoft’s stock value increased by 3.1% due to positive profit reports, while Alphabet’s stock plummeted by 9.5% as a result of losses in its cloud business.
Impact on Australian Tech Companies: Australian tech companies, including Xero, WiseTech, and Megaport, also suffered losses. Megaport experienced a significant drop of 16.3% following an underwhelming performance for the September quarter.
Utilities Stocks on the Rise: In contrast to the tech sector, utilities stocks saw an increase of 1.3%.
Australian Dollar Falls: The Australian dollar fell to a one-year low of US62.73c after comments by Reserve Bank Governor Michele Bullock regarding higher-than-expected inflation data at Senate estimates.
Westpac Predicts Rate Hike: Westpac’s chief economist, Luci Ellis, predicted a potential rate hike at the Reserve Bank of Australia’s November meeting in response to inflationary pressures.
Pilbara Minerals’ Performance: Pilbara Minerals’ stock fell by 0.5% to A$3.86 after announcing lower quarter figures compared to June, along with the decision to abandon plans for a share buyback or special dividend.
Coles and Fortescue Metals Group: Coles reported a Q1 revenue result of A$9.18 billion, leading to a 0.2% increase in its stock price. Fortescue Metals Group saw a slight increase of 0.9% despite a decrease in iron ore shipments for the September quarter.
Other Noteworthy Events: Westpac reported a loss of A$173 million, leading to a 0.9% drop in its stock value. Azure Minerals also made headlines by agreeing to sell itself to SQM for A$1.63 billion, causing a rally in its stock price.
This article was generated with the assistance of AI and reviewed by an editor, providing an overview of the day’s market events and their implications.
