ASX200: Central Bank Chatter and Commodities Remain Centerpiece…

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The ASX200

It was a 2nd consecutive day in the red for the ASX200 on Wednesday, marking a 6th day in the red from 8 sessions.

Following a 0.67% fall on Tuesday, the ASX200 declined by 0.68% to end the day at 7,369.93.

Wage growth figures from Australia failed to deliver support, with falling commodity prices weighing once more.

Upbeat retail sales figures from the U.S had supported a bullish open before the ASX200 hit reverse.

Commodity and bank stocks continued to weigh after having pulled the ASX200 into the red on Tuesday.

The Stats

In the 3rd quarter, wages grew by 0.6% quarter-on-quarter versus a forecasted 0.5% increase. Wages had grown by 0.4% in the previous quarter. Year-on-year, wages grew by 2.2%.

According to the ABS,

  • Private sector wages rose by 2.4% annually, while growth in the public sector continued to track below the private sector.
  • The annual growth rate returned to a more regular September quarter pattern of wage growth, following the labor market disruptions through 2020 and 2021.

The Market Movers

It was a mixed day for the banks. CBA led the way down, tumbling by 8.07%, with ANZ and Westpac seeing losses of 2.04% and 1.67% respectively. NAB saw a more modest 1.10% loss, while Macquarie Group ended the day up by 0.56%.

Commonwealth Bank’s quarterly earnings release weighed on the banking sector. While the results were upbeat, warnings of strong competition weighing on margins sank CBA and the rest of the big-4.

Commodity stocks had a bearish session. BHP Group and Fortescue Metals Group Ltd ended the day with losses of 1.45% and 1.89% respectively. Rio Tinto declined by 0.98%, while Newcrest Mining led the way down, sliding by 2.10%.

Other Asian Markets

Elsewhere, it was a mixed session. The Nikkei 225 and Hang Seng joined the ASX200 in the red, with losses of 0.40% and by 0.25% respectively. Bucking the trend was the CSI300, which eked out a 0.05% gain.

The Day Ahead

It’s a particularly quiet day ahead on the Aussie economic calendar. There are no material stats due out of Australia or China to provide direction.

On the monetary policy front, RBA Asst. Gov. Ellis is due to speak, however, which will draw some interest.

Away from the economic calendar, however, expect commodity prices and the U.S futures to influence.

The Futures

In the futures markets, at the time of writing, the ASX200 was down by 3 points.

For a look at all of today’s economic events, check out our economic calendar.