The ASX has fallen more than 1%, proving once again September is rarely a good month for the exchange. The ASX200 fell 1.15% or 83.1 points to 7,174.0 today, crossing below its 200-day moving average and putting hopes of a bullish resurgence to bed.
All sectors were down without exception, none more so than Materials, which shed 3.04%, and Energy, with a 1.49% fall.
Better-than-expected GDP growth of 0.4% (forecast: 0.3%) did little to reverse bearish sentiment, as China’s economic recovery continues to falter and concern over more rate hikes in the US pushes the US dollar higher against just about every currency, sending Forex speculators scrambling for the greenback.
Oil has also been on the rise, prompted by continued supply cuts from OPEC and Russia – West Texas has gained 0.97% today, and 4.79% over the last five days, now up 7.25% for the year despite having fallen steadily from May 2022 peaks.
Commodities have suffered in the face of economic uncertainty and China’s ailing property market:
Copper is down 1.37%, nickel 1.15%, tin 0.61% and zinc 0.51%. Gold (-0.48%), silver (-1.63%) and platinum (-1.87%) also fell, with palladium just about breaking even.
Aluminium and lead bucked the trend, gaining 0.80% and 0.52% respectively, and iron ore has made an unexpected revival, having gained 9.50% to its spot price over the last five days.
Government calls for greater diversity in capital markets
The Federal Government yesterday passed legislation to improve competition in the capital markets of Australia, encouraging greater diversity in a country dominated by the ASX.
The new legislation involves a framework designed to facilitate fair, transparent and non‑discriminatory access to market infrastructure for any emerging competitors, which would allow them to offer their own clearing and settlement services.
The move comes after the ASX backed out of an overhaul of its trading platform, prompting the government to call for more diversity in share trading platforms.
The new legislation also gives the Reserve Bank of Australia and ASIC greater powers to regulate and set operating standards, and to intervene on pricing and access disputes.
"It creates a framework for fair, transparent and non-discriminatory access to market infrastructure for any emerging competitors, allowing them to offer their own clearing and settlement services," Federal Treasurer Jim Chalmers said in a statement.
An ASX spokesperson said the company supported "measures designed to facilitate safe and effective competition".
"With the new legislation now in place, ASX intends to engage constructively with further consultations on the scope of clearing and settlement services to be covered and the ASIC rules relating to clearing and settlement," the spokesperson said.
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