The ASX fell 2.22% this week, shedding 1.66% just today.
It was a similar dismal story across the indexes, with every one of them in the red. The S&P500 fell 3.67%, the NASDAQ4.20% and the Hang Seng 3.48%. The Nikkei 225 was on par with the ASX200, falling 2.59% as the FTSE100 dropped 1.68%, a modest dip in comparison to the rest.
All eleven sectors were also, unsurprisingly, down, with Information Tech (-5.81%) and Real Estate (-5.31%) shedding the most and Materials (-0.31%) holding mostly steady.
Commodities were a mixed bag.
Nickel was the real winner this week, gaining 6.41%, with silver (+1.94%), tin (+1.73%) and palladium (+1.49%) following the battery metal up.
Lead continued its downward momentum, shedding 5.31% alongside aluminium, which fell 4.55% and zinc (-2.47%)
The other commodities were mostly flat; West Texas Intermediate (WTI) crude oil (-1.89%) and copper (-0.24%) fell, but gold (+0.39%) and platinum (+0.19%) gained marginally.
Pandemic impact on Hong Kong business lessens in third quarter
Research conducted by the Hong Kong Trade Development Council (HKTDC) has revealed improved confidence in short-term export performance among traders, with the HKTDC Export Index increasing 1.9 points to 32.8 in the third quarter of this year.
Conversely, exporters are facing downward pressure on prices, demonstrated by the Trade Value Index falling 11.5 points to 40.2
The HKTDC conducts the Export Index survey every quarter, interviewing some 500 Hong Kong exporters from six major industries - machinery, electronics, jewellery, watches and clocks, toys and clothing - to gauge business confidence in near-term export prospects.
The Index indicates an optimistic or pessimistic outlook, with 50 as the dividing line.
HKTDC director of research Irina Fan highlighted that a deteriorating external environment has slowed economic recovery more than hoped.
“Weakening demand in major markets dampened by high inflation and aggressive monetary tightening, coupled with rising Sino-US trade tensions and other fallouts from the Russia-Ukraine conflict, also cloud the export outlook," she said.
COVID-19 related issues remain among the top concerns for Hong King exporters in the near term, with most respondents saying COVID-19 persistence (40.2%) and border closures (22.6%) are the major impediments to export performance.
"To help them deal with this changing environment, Hong Kong businesses are tending to shift from being market-focused to more money-focused," Fan said.
HKTDC economist Corey To stated pandemic impacts on business tended to be less severe in the third quarter compared to April-June, commenting: "Fewer respondents experienced negative impacts on their business resulting from the pandemic (77.9%, down 1.2 percentage points).
“Among them, those whose business had been very negatively affected fell 11.8 percentage points to 23.4%."
Economist To pointed to transportation costs (64.1%) and logistics disruptions (51.8%) as the key challenges for Hong Kong exporters, though both fell significantly – by 8.5% and 13.4% respectively – from the previous quarter.
Bitcoin reverses week-long sell off; avoids testing mid-June lows
Bitcoin has arrested its fall over the last few days, reversing a week-long sell-off and avoiding a drop beneath its lows of US$17,600 from mid-June this year.
Bitcoin’s price has been fairly stable over the last two months, trading between its low of US$17,600 and recent mid-August highs of US$24,848.
“The flows in and out of Bitcoin and Ethereum have decoupled recently, punctuated by the Ethereum merge last Thursday,” Capital.com Australia head of trading Brian Gould said.
“Volatility begets volatility in these markets, because sharp moves scare off longer-term holders of cryptocurrency, and draw in more speculation. In turn, this speculative money encourages greater volatility.
“In this regard, recent moves in Ethereum may encourage medium-term Bitcoin inflows, as certain traders move money away from the extreme volatility.
“Since its mid-August highs, Bitcoin is down 24%. Ethereum, on the other hand, is down 33% and has swung as hard as 55% since June 1, top to bottom.
“These extremes will not scare away all traders; in fact, they will lure many speculative traders who are seeking price action.
“In the case of Ethereum, we need to let the September 15 ‘merge’ event bed down and get behind us before we can read too far into these changes in behaviour.
“At this stage, indications seem to show ongoing interest in Bitcoin, despite sentiment being adversely affected in the lead up to the Fed decision on Thursday morning.
“Although many anticipate the Fed to follow market expectations with a 75 basis point hike, the risk of a 100 basis point hike is still not off the cards – essentially creating downward pressure that may be relieved if these market expectations are met.”
Fuel exercise to end; petrol to spike 25c per litre
The moment Australian motorists have been dreading has arrived; the fuel excise tax cut is set to end on September 29, reverting back to 46 cents and lifting petrol prices 25 cents per litre.
Research from Finder.com has indicated Aussies will be hit hard by the petrol price jump, with almost a third (28%) of respondents listing petrol expenses as the greatest stress point for finances.
“Fluctuating fuel prices are putting a lot of financial strain onto the lives of Australians, and it’s only set to get worse,” Finder money expert Sarah Megginson said.
“Many Australians are dreading filling up at the pump, and with the fuel excise set to end in a week, now is the time to grab cheaper fuel while it’s still available.”
Volatiles fuel prices have prompted 2.6 million Australians (13%) to consider ditching conventional cars altogether, a potential windfall for the electric vehicle market.
While owners of electric vehicles remain unaffected by climbing fuel prices, the New South Wales State Government has set out plans to introduce road-user charges for electric vehicles from mid-2027.
Megginson recommends planning ahead and shopping around for the best fuel price should you still own a combustion engine.
“If you've ever filled up the car and then driven past a service station 10 minutes away with a much cheaper price, you'll know it pays to shop around,” She said.
“Luckily, there are plenty of apps that do the legwork for you.
“Depending on where you are, you could get a government app, such as the NSW Fuel Check app or WA's FuelWatch.
“There are also plenty of independent apps such as MotorMouth and FuelPrice Australia, plus some options through existing apps for brands, including NRMA and 7-Eleven.”
Fill up before the September 29 change over to get the best price you can, says Megginson, who recommends Tuesdays as the cheapest average day of the week.
“I filled up my tank last Tuesday morning for 151.9 cents per litre, and by Tuesday evening it was 195.9 cents per litre. I bought 58L of fuel, a difference of $25.52,” She said.
“If you have to spend money on petrol, you might as well get rewarded for it with points. BP (LON:BP) Rewards, Flybuys and Everyday Rewards also let you redeem points for cash off your fuel spend.”
Small caps wins for the week
Gains in the small cap index were muted this week on the back of a rough market, although some bright spots shone through the murk.
Flynn Gold surges 30%
Flynn Gold Ltd (ASX:FG1) gained 30% over the last five days, buoyed by more high-grade gold results from drilling at Trafalgar in Tasmania.
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AuKing Mining jumps 16.6%
AuKing Mining Ltd (ASX:AKN) has climbed 16.6% following the appointment of an experienced investment banker, public company director and manager as new independent non-executive chair. The company also increased its interest in the Koognie Park Joint Venture to 80%.
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St George Mining lifts 16.1%
St George Mining Ltd (ASX:SGQ) shares increased 16.1% this week, boosted by early indications that the company’s Mt Alexander lithium project may be part of an underexplored lithium province.
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Way2Vat climbs 14.2%
Way2VAT Ltd (ASX:W2V) completed the acquisition of DevoluIVA S.L.U., Spain's first fully digital solution for corporate expense and VAT recovery, lifting shares about 14% intraday and maintaining that momentum through to the end of the week.
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