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ASX 200 Sheds 1.5% as Yields Lift

Published 23/09/2022, 11:08 am
© Reuters.
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By Oliver Gray

Investing.com - The S&P/ASX 200 fell 103.2 points or 1.5% to 6,601.1 after the first hour of Friday’s trade, reopening after a public holiday yesterday, with risk sentiment remaining subdued as central banks around the world pushed ahead with higher interest rates, sending government bond yields higher and heightening recession risks.

ASX 200 Futures were pointing 0.8% lower.

Among stocks, rate-sensitive companies fared the worst, with Real estate falling 3.8%. Mirvac Group (ASX:MGR) dipped 4.9%, Stockland Corporation Ltd (ASX:SGP) fell 1.8%, Goodman Group (ASX:GMG) lost 3.3% and Charter Hall Group (ASX:CHC) retreated 4.4%.

Information Technology fell 3.6% collectively with Block Inc (ASX:SQ2) down 8.9%, Appen Ltd (ASX:APX) falling 3.6%, Megaport Ltd (ASX:MP1) down 5.8% and Xero Ltd (ASX:XRO) shedding 5.8%.

Consumer Discretionary fell 3.3% with Domino's Pizza Enterprises Ltd (ASX:DMP) down 3.3%, Tabcorp Holdings Ltd (ASX:TAH) falling 2.6%, Aristocrat Leisure Ltd (ASX:ALL) down 2.4% and JB Hi-Fi Ltd (ASX:JBH) shedding 3.6%

However, Materials bucked the trend, rising 0.3% as Rio Tinto Ltd (ASX:RIO) added 2.7%, BHP Group Ltd (ASX:BHP) lifted 1.7%, Fortescue Metals Group Ltd (ASX:FMG) gained 1.5% and Champion Iron Ltd (ASX:CIA) added 0.5%.

On the data front, flash Manufacturing and Services PMI figures came in just above expectations. Manufacturing lifted to 53.9 from 53.8 in August while Services lifted to 50.4 from 50.2.

On the bond markets, Australia 10-Year rates were at 3.912% while United States 10-Year yields were at 3.712%.

In New Zealand, the NZX 50 was down 0.7% to 11,435.9.

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