Markets are turning: US earnings warnings and China’s growth fears stifle early ASX gains

It seemed the Australian stock market on Tuesday would strengthen before an alarming echo from across the Pacific turned the mood into a negative one.

The ASX 200 rose 0.2 percent on the open market, but soon receded into the background after banking heavyweights UBS and JP Morgan lowered their growth forecasts in China to 2022.

A warning about profits from the US company on social media Snap also slowed the local index and dragged technology stocks into decline.

Postpaid owner Block Inc fell 7.3 percent to $ 115.56, and there were big losses for Xero, Wisetech Global, Sezzle, Zip Co and Tyro Payments when the ASX 200 ended the day at 20.1 points, or 0.3 percent lower by 7,128.8.

The Broad All Ordinary lost 25.7 points, or 0.4 percent, to 7373.2, while the Australian dollar fell below 71 cents at the local close, rising after Labor won the federal election over the weekend.

Pushpay’s church payment app rose 15.6 percent to $ 1,295 after it was noted to have received additional interest on the takeover.

Meanwhile, shares of gambling giant Tabcorp ended the day 80.2% below $ 1,055 after the company split its more lucrative business in Keno and lotteries.

The organization – known as The Lottery Corporation – closed at $ 4.70 on Tuesday.

Initially, Wall Street set the local market up for a strong session, and the Dow Jones, Nasdaq and S & P500 indexes rose sharply overnight.

U.S. stocks rose sharply as JP Morgan raised earnings forecasts and was optimistic about the U.S. economy.

But the whole momentum was destroyed by several ads during non-business hours, which caused chills on the backs of traders in the Asian sector.

Snap’s nasty forecast for the quarter toppled its shares, dragging down Facebook owner Meta.

“Snap, Crack, Pop may evoke memories of breakfast cereals, but for Snap Inc their quarterly recommendations were more like dog breakfasts,” said OANDA Asia Pacific senior analyst Jeffrey Halle.

The fall in US futures came after JP Morgan and UBS sharply reduced growth in China. where Covid-19 cases remain stubbornly high.

“The market continues to turn inside out and reverse as it tries to decide whether it will be able to push everyone’s price to push for higher rates, soft landing or recession, inflation or stagflation, China, Ukraine, US summer season, supply chains, list goes on” , – wrote Mr. Haley.

“The result is a daily holiday, and it seems clear that volatility is the winner.”

Local banks and miners were mostly solid on Tuesday, with Macquarie Group and BHP down 0.6% to $ 178.81 and 0.1% to $ 47.80, respectively.

CSL rose 0.4 percent to $ 274.15, retail and industrial conglomerate Wesfarmers added 0.3 percent to $ 46.13, while Goodman Group and Woodside Petroleum also increased.

But it was scary for media and TV stocks: Telstra fell 1.3 percent to $ 3.87 amid the Red Sea.

Jobs Seek was down 4.2% to $ 24.35, REA Group was down 3.6% to $ 110.04, and carsales.com was down 3.5% to $ 19.27.

Woolworths supermarket also fell, losing 0.7 percent to $ 34.34, while Coles fell 0.6 percent to $ 17.65.