The S&P/ASX 200 has followed the lead of U.S. markets and sunk lower on Tuesday. At lunch the benchmark index is down a sizeable 1.4% to 6,992.4 points.
Here’s what has been happening on the market today:
Bank shares lower.
The big four banks are all trading lower with the market on Tuesday. At lunch the Australia and New Zealand Banking Group (ASX: ANZ) share price is the worst performer in the group with a 1.6% decline. Concerns over the coronavirus outbreak is weighing on investor sentiment globally.
The Crown Resorts Ltd (ASX: CWN) share price has come under pressure and is tumbling notably lower. This follows a tough night of trade for U.S. casino stocks. They were sold off due to concerns over the impact that the coronavirus outbreak might have on Chinese tourism. Chinese VIPs contribute materially to Crown’s profits. If they don’t travel to Australia it could create a gap in its earnings in the near term.
Gold miners higher.
Those same concerns have sent gold miners including Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) charging higher on Tuesday. Evolution and Saracen are up around 2% at lunch. This has helped drive the S&P/ASX All Ordinaries Gold index 1% higher at the time of writing.
Credit Corp’s solid half year result.
The Credit Corp Group Limited (ASX: CCP) share price is trading lower despite the release of a solid half year result. For the six months ended December 31, the debt collector reported a 13% increase in its consumer loan book to $230 million. Combined with a very strong performance by its U.S. business and profit growth across all segments, this led to Credit Corp reporting a 15% increase in first half net profit after tax to $38.6 million.
Best and worst performers.
The best performer on the benchmark index on Tuesday has been the Gold Road Resources Ltd (ASX: GOR) share price with a 2.5% gain thanks to a rise in the gold price. Going the other way, the Webjet Limited (ASX: WEB) share price is the worst performer with a sizeable 10% decline. A broker downgrade by Morgan Stanley is weighing on its shares today.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Webjet Ltd. 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.
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