AU Morning Wrap: ASX Drops; Energy Stocks Surge

Moomoo News AU wrote a column · Apr 2 18:30

G'day, mooers! Check out the latest news on today's stock market!
• Wall Street fall
• ASX drops; energy stocks surge
• Stocks to watch: Westgold, Mighty Craft, WiseTech

AU Morning Wrap: ASX Drops; Energy Stocks Surge

Wall Street Summary

US stocks closed in a sea of red, but they recovered slightly from their lowest point of the session. This was due to investors considering the likelihood of a delay in an interest rate cut that they were hoping for.

The $Dow Jones Industrial Average(.DJI.US)$ fell by approximately 1%, or almost 400 points, which prevented the index from reaching the critical 40,000 level. The $S&P 500 Index(.SPX.US)$ dropped by around 0.7%, and the $Nasdaq Composite Index(.IXIC.US)$, which is heavily focused on technology, also declined by almost 1%.

AU Market Watch

At the beginning of the trading day, Australian stocks experienced a decline, following the trend set by New York's equities market, which saw a second consecutive session of losses. Bond yields also increased after the release of more robust US data.

Stocks to Watch

$Westgold Resources Ltd(WGX.AU)$, a Western Australia-based gold miner, has adjusted its full-year production guidance for the 2024 fiscal year to 220,000 to 230,000 ounces, with an all-in sustaining cost ranging from $2100 to $2300. In its latest quarterly production update, the company reported producing 52,100 ounces of gold, with an average sale price of $3137 per ounce.

$Mighty Craft Ltd(MCL.AU)$, a struggling craft beer company, has sold two assets, Mismatch Brewing and the 78 Degrees distillery business, for a total of $7.2 million in order to pay off its heavy debt levels. Approximately half of the proceeds will be used to pay the company's bankers, with the rest going towards keeping the business afloat.

$WiseTech Global Ltd(WTC.AU)$ non-executive director Teresa Engelhard will be stepping down from her position on the board. Engelhard, who was previously a member of the board at Origin, will retire from the ASX-listed technology company effective April 8th in order to focus on her personal business interests.