Australian shares are tilting lower in the final hours of trading, with gains in a handful of mega-cap stocks struggling to counterbalance a sector-wide rout in tech stocks following results from chipmaker Nvidia in the US.
The S&P/ASX 200 is 0.1 per cent lower after trading largely flat for most of the day. The All Ordinaries is faring worse, down 0.2 per cent.
Tech stocks are 1.4 per cent lower despite Nvidia’s results sailing past analyst expectations. The Nasdaq-listed stock has fluctuated in after-hours trade. It appears the company’s Q4 growth outlook failed to meet the lofty expectations of investors betting on the AI boom.
The company said its revenue in the third quarter ended October 29 rose 34 per cent from the second quarter to $US18.12 billion ($27.7 billion).
Analysts were expecting revenue of $US16.2 billion. For the fourth quarter, Nvidia said it expected its revenue to be $US20.00 billion, plus or minus 2 per cent.
Energy and materials stocks have fallen back after making early gains this morning. At 2pm both sectors are trading largely flat.
Utilities are the best performing, up 0.6 per cent, buoyed by a 1 per cent gain in takeover target Origin Energy, as shareholders await the outcome of the buyout vote.
A 1 per cent gains in healthcare mega-caps CSL and Cochlear are also helping to offset the tech rout.
For local investors, the focus is squarely on the RBA though Wednesday’s commentary won’t arrive until this evening when governor Michele Bullock speaks about monetary policy at the ABE Annual Dinner at 7.35pm AEDT in Sydney.
‘We need to remain focused’
Overnight the US Federal Reserve released minutes from its latest policy meeting, which confirmed that the door is not entirely closed on another potential rate rise.
The Dow Jones closed down 0.2 per cent, the S&P 500 was 0.1 per cent lower and the Nasdaq fell back 0.5 per cent.
The Fed’s message was echoed by Bank of England governor Andrew Bailey and European Central Bank president Christine Lagarde.
“This is not the time to start declaring victory,” Lagarde said in a speech in Berlin. “We need to remain focused on bringing inflation back to our target, and not rush to premature conclusions based on short-term developments.”
Bailey told the UK government hearing that markets are “underestimating” the threat of inflation. In a Berlin speech, Lagarde said it’s “not the time to start declaring victory” over inflation.
Stocks on the move
Healius is down 34.5 per cent to $1.20 after completing a $154 million share offer priced at $1.20 apiece.
Praemium is 22 per cent lower at 45¢. The wealth platform revealed a weak outlook for the first half of FY24 at today’s annual general meeting.
Trans-Tasman pharma distributor EBOS’ $3.75 billion deal to acquire TPG Capital-backed pets and vets business Greencross has fallen through. Shares have slipped 3.3 per cent to $33.85.
Infant formula group Bubs has halted its shares ahead of plans to raise capital to fund its US expansion. Shares will be halted until November 24.
Teen jewellery retailer Lovisa was 1.4 per cent lower at $18.01 after recording declining sales on a per store basis in the first half of FY24.
Shares in real estate conveyancing platform PEXA have slipped 5.6 per cent to $11.46 after CEO Glenn King told investors the economic outlook in Australia was “mixed”.
Nufarm shares trade ex-dividend as of today and are 1.3 per cent lower at $4.52.
