The ASX 200 index fell 0.59% on Wednesday, as investors watched US midterm election results unfold and US futures sank. The index had been down close to 1% in late trade, but recovered some ground to finish 0.59% lower. Nasdaq futures were off more than 2% at one point.
Materials and financials were the main sectors to feel the pain, while utilities and staples led the defensive charge. Copper also fell, losing around 1.5-2%, as concerns about the economics of the AI data-centre boom continued to swirl.
Market Mayhem
Closer to home, household spending rose 0.6% in September, largely due to higher fuel costs. This was good news for servo owners, but not necessarily a sign of increased consumer confidence. Block was one of the few companies to have a decent day, up around 6% after lifting guidance and delivering 22% growth in quarterly gross profit.
At the other end of the spectrum, 4D Medical continued to struggle, while AMP finally managed to stop falling. The post-RBA hangover also continued, with rates now at 4.85% and UBS predicting a greater chance of another hike or two than none at all, with February the next likely date.
US politics and stock markets remained in a deeply dysfunctional relationship, with banks and miners taking a hit and defensives hiding behind the couch. Copper lost its nerve, and the ASX finished the day with a loss.
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Big Tech and AI
AMD exceeded forecasts and increased its earnings outlook, causing its stock to surge after trading hours due to sustained AI-driven demand. Meanwhile, Meta secured roughly $58 billion in orders for a $15 billion bond issuance, reflecting how major tech firms are aggressively financing AI infrastructure with massive debt.
Canva is restructuring around 22% of its workforce, with 1,271 staff losing jobs, changing roles or relocating as the company simplifies ahead of a potential listing. David Jones failed to reach a deal with landlords, with its board reportedly meeting as voluntary administration looms over the 188-year-old retailer.
Utility stocks led gains on Wednesday with a 1.17% rise, while energy climbed 0.86% and staples added 0.28%. Tech stocks barely turned positive at 0.17%, but materials dropped 1.46%, industrials fell 1.25%, and real estate declined 1.09%. Consumer discretionary and healthcare also underperformed, losing 0.68% and 0.65% respectively.
The ASX 200 closed 0.59% lower, with the All Ordinaries index down 0.60% and Small Ordinaries off 0.86%. Resources declined 1.03%, and the Gold index fell 0.79%. The session saw mixed results, with four sectors gaining ground while seven declined.
Axtec is bringing in fintech veteran Andy Taylor as its new boss, subject to final conditions, to take its property payments business into AI-powered financial services. The company has also secured a $1 million cap raise at 1c a share, with Taylor putting in $250,000 of his own money.
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BPM Minerals has struck high-grade gold in its first drilling at Bonnie & Clyde in WA, hitting 4m at 20.57g/t and 8m at 9.23g/t. Cynata Therapeutics has wrapped up a $913,000 entitlement offer and secured commitments for another $550,000 cap raise at 1c a share.
The extra cash will give Cynata more room to pursue new assets as it weighs up what to do next with its Cymerus stem cell technology. However, the placement still needs shareholder approval. As the market continues to react to the US midterm election results, investors will be watching closely to see how the ASX responds in the coming days, with ASX traders bracing for potential volatility.
Market Updates
BOA Resources announced high-grade copper findings at its Ricci Lee prospect. Core Energy has begun its inaugural uranium drilling program at a joint venture project in Namibia, expressing enthusiasm for the venture’s potential as it advances its plans.
Latitude 66 has received clearance to progress work at its KSB project. LTR Pharma has brought in Shark Tank investor Nick Bell to help drive its next stage of growth. The company is looking to expand and is bringing in experts to help them achieve their goals.
Waratah Minerals has defined a maiden 3.1Moz gold resource across Spur and Consols. Riversgold has been granted a trading halt due to a capital raise. The company is looking to raise funds and is taking the necessary steps to achieve their goals.
