AU Morning Wrap: Liontown Sinks 34%, Gold Miners Climb

Moomoo News AU wrote a column · Oct 19, 2023 18:55

G'day, mooers! Check out the latest news on today's stock market!
• US 10-year Treasury yield crosses 5%
• ASX falls 1.2%
• Stocks to watch: Liontown, Northern Star, Insignia Financial
- Moomoo News AU

AU Morning Wrap: Liontown Sinks 34%, Gold Miners Climb

Wall Street Summary

Stocks ultimately sank Thursday after being whipsawed by remarks from Federal Reserve Chair Jerome Powell.

Powell's comments jostled markets as investors were weighing bond yields' ascent toward 5%, the continuing conflict between Israel and Hamas, and the influx of corporate earnings results from the third quarter.

The $S&P 500 Index(.SPX.US)$ dropped 0.8% with 10 of its 11 sectors finishing in the red. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ fell 1%, while the $Dow Jones Industrial Average(.DJI.US)$ declined 0.7%.

AU Market Watch

Shares dropped 1.2 per cent at the open to 6892 points not far from an October 4 closing low of 6890.2 points for the $S&P/ASX 200(.XJO.AU)$.

The selling followed Wall Street overnight as investors worry about a war in the Middle East and US 10-year bond yields touching 5 per cent for the first time since July 2007.

Only a handful of large-cap stocks are higher, including gold miners $Northern Star Resources Ltd(NST.AU)$, $Regis Resources Ltd(RRL.AU)$ and E $Evolution Mining Ltd(EVN.AU)$ as the gold price hits a record high in Australian dollars.

The interest rate sensitive tech and real estate sectors are among the worst performers down 1.3 per cent and 1.6 per cent respectively as bond yields rise.

Stocks to Watch

$BlueScope Steel Ltd(BSL.AU)$: Steelmaker BlueScope has cut its EBIT guidance for the first half of financial 2024 to between $620 million and $670 million, versus prior guidance of between $700 million and $770 million.

It blamed weak US steel prices affecting sales at its North Star facility in the US for the downgrade. BlueScope said it would provide more detail at its November 21 annual general meeting.

$Insignia Financial Ltd(IFL.AU)$: Shares in Insignia Financial are down 8.1 per cent after it said chief executive Renato Mota is to leave the business in February.

$Liontown Resources Ltd(LTR.AU)$: Shares in lithium darling Liontown Resources crashed 34.5 per cent after it raised $365 million from institutional investors at $1.80 per share to fund development of its Kathleen Valley Project.