Mid-Market: S&P/ASX 200 Trading Low; Dragged down by Utilities

On 19 August 2024, at AEST 11:00 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 8.30 points, or 0.10%, to 7962.80. Out of 11 sectors, 03 sectors are trading lower. Utilities and Materials are the top declining sectors, 2.31% and 1.26% in their index values, respectively. On the other hand, Information Technology and Consumer Discretionary are the top two gaining sectors, gaining 6.02% and 5.28% in their index values, respectively.

Audinate Group Limited (ASX: AD8) and Ramelius Resources Limited (ASX: RMS) are the top-gaining stocks, with stock prices increasing by 7.830% and 4.390%, respectively. The A2 Milk Company Limited (ASX: A2M) and Regis Resources Limited (ASX: RRL) are the top-losing stocks, with stock prices declining by 17.689% and 7.273%, respectively.

Factors influencing the market-

• The market is feeling the effects of the earnings season, as Lendlease's 1.6% decline and A2 Milk's 17% decline follow poor results.
• Investor attention is currently focused on consumer mood and discretionary expenditure; further information is anticipated from forthcoming reports from retailers such as Breville and Domino's Pizza.
• Australian resource reserves are under pressure due to China's declining steel industry; iron ore prices fell 9% last week to $US91.9 per tonne.
• Lower global commodity prices, especially for iron ore, affect sales estimates; BlueScope's 4% decline following the company's announcement of a 6% revenue decline to AU$17 billion is one example.
• The real estate and banking industries are still negatively impacted by rising interest rates; GPT Group reported a 2.4% decline in earnings, while Westpac saw a 1% increase in profits.
• Brent Crude down 0.20% to $79.52 and West Texas Intermediate (WTI) Crude down 0.14% to $76.54—are expected to put pressure on Australian energy equities and increase market uncertainty.
• The Dow Jones closed up by 0.24%, with the S&P 500 and NASDAQ increasing by 0.20% and 0.21% respectively. 
• The Hang Seng is flat, and the FTSE 100 is lower by 0.43% today.

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