ASX rebounds after global rout; Woodside shares tumble

The Australian sharemarket rebounded on Tuesday as investors took a breather from the heavy selling that was triggered by fears of a US recession.

The benchmark S&P/ASX 200 Index rose 0.4 per cent, or by 31 points to 7680.6 at the closing bell, with seven out of the 11 sectors in the green. The All Ordinaries also added 0.4 per cent.

The local bourse held steady after the Reserve Bank left the cash rate at 4.35 per cent and as governor Michele Bullock poured water over the possibility of an interest rate cut in Australia this year.

The central bank’s decision comes after the local sharemarket suffered its worst day in more than four years on Monday, following weaker than expected US jobs figures which ignited fears of a hard landing in the world’s largest economy.

RBA holds firm

“While one day of volatility on the ASX may not influence the board’s policy decisions, sharper-than-expected rate cuts from the [Federal Reserve] may open the door for the RBA to ease monetary policy sooner than anticipated,” said eToro market analyst Josh Gilbert.

Even so, Ms Bullock told the media that the recent market volatility had no bearing on the rate decision, before adding that only the possibility of a rate increase and keeping rates on hold was discussed at the two-day meeting.

Elsewhere in the world, Japanese equities powered higher, retracing some of the brutal losses sustained in Monday’s global rout. US equity futures also pointed higher on Tuesday.

On the ASX, interest rate sensitive consumer discretionary and real estate stocks recorded the most gains. Retail conglomerate Wesfarmers added 2.3 per cent to $70.73 and property heavyweight Goodman Group climbed 2.2 per cent to $32.82.

Meanwhile, the energy sector was the worst performing, down 2 per cent. The losses tracked lower commodity prices as global economic malaise dimmed the outlook for industrial demand and sent traders rushing to cash out of profitable positions.

Oil since rebounded slightly from a seven-month low as Brent climbed towards $US78 a barrel after tumbling more than 5 per cent over the previous three sessions.

Within the sector, Woodside Energy dropped 5.1 to $25.12 after the oil and gas producer got a harsh reception to its surprise $3.7 billion purchase of a lower-carbon ammonia project under construction in the United States.

Ampol slid 0.8 per cent to $32.21 and Beach Energy lost 0.7 per cent to $1.405.

Stocks in focus

Three of the four major banks recorded gains, led by index heavyweight Commonwealth Bank rallying 2.2 per cent to $127.69. National Australia Bank rose 0.7 per cent to $35.05 and Westpac firmed 0.5 per cent to $27.82.

ANZ was an exception, falling 0.5 per cent to $27.30.

Coal miner Coronado Global Resources’ shares fell 0.8 per cent to $1.27 after it reported a 10 per cent slump in revenue to $1342 million in the half-year due to lower average metallurgical coal prices. Net income came in at $16.2 million.

Winemaker Treasury Wine Estate added 1 per cent to $11.70 after the company said it would shop around its cheaper wine brands as part of a strategic reset for the Penfolds owner.

And audiovisual networking business Audinate Group shares tumbled 36.3 per cent to $8.48 after the company provided a soft FY25 outlook which implied a large consensus downgrade. It was the worst performing stock on the ASX 200.

With Bloomberg