Market Wrap: No relief as ASX drops on China worries

The ASX surged higher immediately after the open, but soon crashed to end the day in the red once again.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.3% to 4892 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.3% to 4948 points
  • AUD/USD at US 69.46 cents
  • Iron Ore at US$40.22 a tonne, according to the Metal Bulletin
  • Gold at US$1,080.77 an ounce
  • Brent oil at US$30.54 a barrel

The ASX lifted as much as 1.8% this morning, fuelled by rising commodity prices and a strong performance in Wall Street overnight. It proved incapable of holding onto those gains however as Chinese shares once again traded lower.

Despite starting the day on a positive note, all four of Australia’s major banks closed lower. Commonwealth Bank of Australia (ASX: CBA) was the worst, sliding 0.7%.

BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and South32 Ltd (ASX: S32) all lifted for the day, although they closed considerably lower than their intraday highs.

BHP rose as much as 5.8% despite announcing a major write-down, but ended the day just 1.3% higher, while the others rose 1.7% each.

Telstra Corporation Ltd (ASX: TLS) and QBE Insurance Group Ltd (ASX: QBE) also fell 0.7% and 3.2%.

Liquefied Natural Gas Ltd (ASX: LNG) managed to buck the trend, rising 15.3%, while Sundance Energy Australia Ltd (ASX: SEA) was by far the worst-performing share, losing 11.5%.

Here are Friday’s top stories:

  1. BHP Billiton Limited announces US$7.2 billion writedown: What you need to know
  2. Dick Smith to save Dick Smith shareholders?
  3. Technology and health care sectors to be big winners in 2016
  4. National Australia Bank Ltd. shares lift on Clydesdale Bank update
  5. The Hub24 share price is soaring: Here’s why
  6. Is the party over for the a2 Milk Company Ltd (Australia) and Bellamy’s Australia Ltd share price?

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Motley Fool contributor Ryan Newman owns shares of Bellamy's Australia. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia owns shares of Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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