End of Day Report – Thursday 19 December: ASX falls 1.7% on Fed | MSB soars on FDA approvals

The ASX 200 tumbled 141 points to 8168 as the Fed grew hawkish and warned on rate cuts next year. Everything was hit hard. The banks fell with CBA down 2.3%, ANZ dropped 2.6% as the AGM saw another shareholder strike against Shayne Elliott. The Big Bank Basket fell to $253.85 (-2.3%). MQG down only 1.3% with some insurers up on the day, QBE up 2.1% with MPL rallying 0.5%. REITs were sold down on higher rates, GMG down 2.3% and SCG off 1.2% with industrials under pressure. Retail fell as JBH dropped 2.4% with LOV down 3.2% and WES off 1.3%. WOW fell 1.3% but COL rose 0.3%. Tech stocks came under pressure, REA down 2.5% and WTC off 2.2% with XRO falling 2.6%. In resources, most rallied off lows, BHP down 1.5% and FMG falling 3.9%. Gold miners under pressure on bullion falls but in AUD terms, it held steady, EVN down 2.8% and NEM off 3.6%. Energy stocks fell, WDS down 1.9% despite a deal with Chevron, WHC dropped 4.0% and PDN rose 1.3% as Canadian authorities cleared the Fission bid. DYL hammered 12.1% as the FID was postponed until early next year. In corporate news, MSB went ballistic, up 54.0% on FDA approvals, IPL fell 2.9% on its AGM update. PMT rose 15.9% on a deal with VW. AGL fell 0.7% as a court ordered it to pay $25m over customer failings. In economic news, Australian household wealth increased by 2.4% in the September quarter.  The BoJ left rates unchanged. Tonight, we get the BoE and rates are likely to be left unchanged.

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