ASX Market Wrap: Good news hard to find, but rate cut odds firm

The market took the PPI numbers to all-but-confirm an interest rate cut next week, and ended down 0.3%

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ASX shook off a solid lead from Wall Street on Friday, and a positive ASX SPI futures number to finish the first day of the trading week in the red.

The S&P ASX 200 (Index: ^AXJO) (ASX: XJO) and the All Ordinaries (Index: ^AORD) (ASX: XAO) both ended down 0.3%, at 4,352.4 and 4,430.3 points, respectively.

Dominating today's headlines was the Producer Price Index (PPI), the inflation gauge for products purchased by industry. The PPI was down for the first time in two years, dropping 0.3% for the March quarter.

The market saw the decline as further support for a cut in the Reserve Bank of Australia's (RBA) official cash rate, believing the decline is likely to be mirrored in soft consumer inflation numbers due out next week.

The minutes from the RBA's last meeting suggested that the bank would be carefully watching the CPI numbers as a key input into the next rates decision, with a low CPI expected to give the RBA room to cut rates.

Meanwhile, ASX biotech Biota (ASX: BTA) agreed to a merger proposal from US-based Nabi Pharmaceuticals that will see Biota leave the ASX for the bigger (and the company says more biotech-friendly) Nasdaq exchange, while both Paladin (ASX: PDN) and Ainsworth Game Technology (ASX: AGI) were the two latest companies to jump on the equity raising bandwagon, with plans to raise US$220m and $44m respectively.

Back on the markets, only the Telecomms and Financials (ex-Property) sectors saw gains, with Information Technology (down 0.9%), Health Care (down 0.8%) and Energy (off 0.8%) leading the losses.

Only 1 in 4 ASX 200 companies saw gains on the day, led by Senex Energy (ASX: SXY) which closed up 4.5%, and Alacer Gold (ASX: AQG), up 4.3%. Other notable gainers included Dart Energy (ASX: DTE), which gained 3.3%, Discovery Metals (ASX: DML), which put on 3.2% and Spotless Group (ASX: SPT), up 2.5%

Of the two-thirds of ASX 200 components to lose value, Resolute Mining (ASX: RSG) was the largest loser, off 5.2%, while Mount Gibson Iron (ASX: MGX) lost 4% and Ramelius Resources (ASX: RMS), Imdex (ASX: IMD), Panoramic Resources (ASX: PAN), Aquila Resources (ASX: AQA) and Gryphon Minerals (ASX: GRY) and 6 others lost more than 3%.

After losing almost one-quarter of one per cent (24 basis points for those with a preference for analyst-speak) after the PPI numbers were released, the Australian dollar was trading at 103.13 US cents, down two-thirds of a cent, in late afternoon trade.

The Motley Fool is helping Australians invest. Better. If you're looking for income from your ASX shares, look no further than "Secure Your Future with 3 Rock-Solid ASX Dividend Stocks". In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

 Take Stock is The Motley Fool Australia's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691).

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »