At lunch on Wednesday the S&P/ASX 200 index has followed the lead of U.S. markets and tumbled lower. The benchmark index is down 0.8% to 6,523 points at the time of writing.
Here’s what has been happening on the market today:
Regional banks sued by ASIC.
The Bank of Queensland Limited (ASX: BOQ) share price and the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price have dropped lower today after ASIC commenced proceedings against them in the Federal Court of Australia. ASIC has alleged that both banks have used unfair contract terms with some of their small business loans.
Domino’s added to conviction list.
The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has pushed higher on Wednesday after analysts at Goldman Sachs added the pizza chain operator to its conviction list. According to the note, the broker has a conviction buy rating and $51.80 price target on its shares. It believes its European operations are at an inflection point and should underpin double-digit EBITDA growth in FY 2020 and FY 2021.
Gold miners charge higher.
The market may be sinking lower, but Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) are pushing notably higher thanks to a rise in the gold price. Overnight the gold price pushed 1.7% higher to US$1,555 an ounce after weak manufacturing data in the United States sparked recession fears. At the time of writing the S&P/ASX All Ords Gold index is up a solid 2.4%.
Best and worst performers.
The best performer on the benchmark index at lunch is the Metcash Limited (ASX: MTS) share price with a gain of 4%. Its shares were given a lift this morning when Goldman Sachs upgraded them to a buy rating with a $3.07 price target. Going the other way is the CSR Limited (ASX: CSR) share price which is down 6.5% at lunch. The building products company’s shares and a number of its industry peers appear to have come under pressure due to the weak U.S. economic data.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. 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 Scott Phillips.