ASX 200 bank shares strengthened on Wednesday, outperforming the benchmark S&P/ASX 200 Index (ASX: XJO).

The Index closed 0.52% lower today while the ASX 200 Banks Index (ASX: XBK) finished 1.03% in the green.

The Macquarie Group Ltd (ASX: MQG) share price followed the trend, closing up 0.58% at $169.66.

The investment bank has posted a series of gains and losses these past 12 months but is currently trading down 17% this year to date, as illustrated below.

Macquarie looks attractive at current prices

The investment debate on ASX bank shares has been a contentious one in 2022. On the one hand, rising interest rates look to boost bank profits.

On the other, the industry is heavily tied to the mortgage sector, with higher interest rates increasing the risk of systemic default.

However, one expert likes what Macquarie shares have to offer. Equity strategist at Wilsons Rob Crookston said Macquarie now presents an “opportunity to buy a quality cyclical at a discounted price”.

He wrote on Livewire:

MQG is a quality business with the proven ability to position itself to take advantage of structural growth opportunities, resulting in compound earnings growth over the long-term.

Management’s ability to deploy capital into opportunities has the potential to underpin future years of growth. We think investors will continue to support this approach, given MQG’s track record.

Crookston said Macquarie can sustainably grow earnings given its focus on annuity income, its capital light model, and exposure to alternative investment classes.

He said that Macquarie manages 153 infrastructure assets across the world across all infrastructure asset classes. These range from roads to airports to digital infrastructure.

Macquarie’s current valuation is also attractive, he says, trading at a price-to-earnings ratio (P/E) of 13.6 times. This is “lower than it has been trading on post-2020 and close to its 5-year historical average”, according to Crookston.

“We think this valuation looks reasonable due to the strong long-term earnings growth potential for MQG and unique leverage to the energy transition.”

The post Why Macquarie shares could be a ‘quality cyclical at a discounted price’: expert appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares responding positively to higher interest rates?
• How did the Macquarie share price perform in June?
• How did the Vanguard Australian Shares Index ETF perform in June?
• 3 more of Morgans’ best ASX share ideas for July
• June was a terrible month for ASX 200 bank shares. Here’s why

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Woolworths Group Ltd (ASX: WOW) share price was arguably one of the S&P/ASX 200 Index (ASX: XJO)’s top value shares in financial year 2022 (FY22).

And what a year it was. The supermarket giant battled through COVID-19 outbreaks, supply chain issues, and numerous acquisition challenges.

As of the final close of FY22, the Woolworths share price was $35.60, 0.6% lower than it was at the end of FY21. For context, the ASX 200 fell around 10% last financial year.

So, what went on with the ASX 200 staple over the period? Let’s take a look.

The Woolworths share price outperformed in FY22

Let’s cast ourselves back to the start of FY21. Sydney was in the first few weeks of its multi-month COVID-19 lockdown, Australia’s vaccine rollout was underway, and Woolworths had only just split from Endeavour Group Ltd (ASX: EDV).

Here are all the major happenings that have impacted the Woolworths share price since then.

Woolworths’ earnings

Woolworths’ FY21 earnings, released in August 2021, detailed a strong year’s performance.

The company’s sales increased 5.7% to around $67.3 billion in FY21 while its earnings before interest, and tax rose 13.7% to around $3.7 billion. Finally, its after tax profits lifted 22.9% to $1.9 billion in FY21.

It also announced a $2 billion off-market buyback.

Sadly, the first half of FY22 wasn’t so favourable for the supermarket giant.

Its after-tax profit slipped 6.5% from that of the prior consecutive period, mostly due to costs associated with the spread of COVID-19.

COVID-19 impacts take toll on Woolworths share price

The Woolworths share price dived 7.6% in mid-December when the company updated the market on the expected impact of COVID-19 outbreaks.

Woolworths Group CEO Brad Banducci commented on the struggles facing the company during the first half, saying:

The first half of FY22 has been one of the most challenging halves we have experienced in recent memory due to the far-reaching impacts of the COVID Delta strain and its impact on our end-to-end stock flow and operating rhythm.

The supermarket later thanked customers for their patience as the ongoing COVID-19-related challenges saw some shelves empty in early January.

One acquisition, two acquisition

And finally, Woolworths was on the hunt for acquisitions in FY22.  

It entered a multi-horse race for formerly-ASX listed Australian Pharmaceutical Industries in early December. It ultimately gave up the chase, allowing ASX 200 conglomerate Wesfarmers Ltd (ASX: WES) to snap up API in March.

But that wasn’t the last of it. The supermarket operator put forward a $1.05 per share bid for an 80.2% stake in online marketplace MyDeal.com.au Ltd (ASX: MYD) in May.

The deal would see MyDeal taken off the ASX, with the remaining 19.8% stake held by its management.

The bid represented a 62.8% premium on MyDeal’s previous close and hasn’t yet been finalised.

The post The Woolworths share price outperformed the ASX 200 in FY22. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Domino’s, EML, Talga, and Woolworths shares are pushing higher
• The Coles share price beat the ASX 200 by over 10% in June
• What’s in store for the Woodside Energy share price in July?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Wednesday was a rough day for many S&P/ASX 200 Index (ASX: XJO) shares as the index was weighed down by the energy and materials sectors. The ASX 200 was 0.52% lower at 6,594.50 points at market close.

A disastrous day for oil prices weighed on the S&P/ASX 200 Energy Index (ASX: XEJ) today. It was 5.8% lower at the end of the session.

The Brent crude oil price plunged 9.5% to US$102.77 a barrel overnight while the US Nymex crude price tumbled 8.2% to US$99.50 a barrel. Their weakness came on the back of fears of a global recession, further lockdowns in China, and a higher US dollar.

Base metal prices also slipped as most Australians slept. Nickel was the only major metal to come out in the green, gaining 0.6%. Meanwhile, iron ore futures lifted around 3.5% to US$113.42 a tonne.

Likely as a result, the S&P/ASX 200 Materials Index (ASX: XMJ) slumped around 5% today.

But it was far from dire across the board. Eight of the ASX 200’s 11 sectors were in the green come market close, led by the tech sector.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) rose more than 3% on Wednesday amid falling government bond yields.

Now, let’s get to the reason we’re all here: Here are the stocks that outperformed all others today.

Top 10 ASX shares countdown

The top performer among the ASX’s 200 biggest stocks by market capitalisation on Wednesday was the Xero Limited (ASX: XRO) share price. The company’s shares lifted around 7% today.

Coming in next best was Domino’s Pizza Enterprises Ltd (ASX: DMP). The stock leapt close to 7% today amid positive responses to news the company will start to charge a service fee on deliveries, reports my Fool colleague James.

Today’s top 10 biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Xero Limited (ASX: XRO)	$86.14	6.82%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$74.94	6.81%
Block Inc (ASX: SQ2)	$99.20	5.14%
Eagers Automotive Ltd (ASX: APE)	$10.35	5.13%
Altium Limited (ASX: ALU)	$28.84	4.76%
Mirvac Group (ASX: MGR)	$2.105	4.73%
Judo Capital Holdings Ltd (ASX: JDO)	$1.3175	4.56%
WiseTech Global Ltd (ASX: WTC)	$42.49	4.4%
HUB24 Ltd (ASX: HUB)	$22.13	4.29%
NextDC Ltd (ASX: NXT)	$11.36	4.13%

Data as at 3:59 pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why Domino’s, EML, Talga, and Woolworths shares are pushing higher
• Top brokers name 3 ASX shares to buy today
• Why are ASX 200 tech shares sprinting higher today?
• The Coles share price beat the ASX 200 by over 10% in June

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., Hub24 Ltd, Judo Capital Holdings Limited, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., Hub24 Ltd, WiseTech Global, and Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price closed 5.6% lower today and it’s down 8.5% in July so far. Is it time to be looking at BHP, and what’s the outlook for the company in July?

As one of the world’s biggest resource businesses, changes in commodity prices can have a big impact on the company’s shorter-term profit prospects and investor sentiment.

BHP’s commodity portfolio is a bit smaller after the company divested its oil and gas segment to Woodside Energy Group Ltd (ASX: WDS). As such, it’s not suffering from the collapse of the oil price right now amid concerns of the world entering into a recession.

After that divestment, BHP has a portfolio comprising iron ore, copper, coal, and potash.

But, some of these commodities aren’t doing so well either. The copper price is at a 19-month low while the iron ore price has fallen by more than US$20 per tonne since the start of June.

Why do commodity prices matter for the BHP share price?

BHP is a price-taker business. In other words, whatever price iron ore or copper are currently trading at is generally the price that BHP can sell its resources for.

It typically costs BHP the same amount of money to extract the resource out of the ground, whether the commodity is priced $50 per tonne higher or $50 per tonne lower.

If the costs are largely fixed, higher revenue can largely go straight to BHP’s net profit after tax (NPAT) in its financial accounts (except for things like company tax, which would rise too).

Larger profits can also lead to big dividend payments as well.

However, the reverse is true when resource prices fall. When commodity prices fall, it largely gets wiped off the NPAT. Dividends can quickly get reduced as well.

So, getting back to the situation for the iron ore price – which is the key profit generator for BHP – the iron ore price has reduced 15% since the beginning of June to the mid-US$110s per tonne.

What do brokers think of the BHP share price?

While Macquarie’s pick of the major miners is BHP, it has just cut its profit expectations because of the lower commodity prices. Even so, Macquarie’s price target is $50, suggesting a possible rise of around 30% in the next year.

Other brokers are less optimistic.

For example, Morgan Stanley is ‘equal-weight’ on the business, which is similar to a ‘hold’ rating. Its price target is $40.05, suggesting a mid-single-digit rise.

The broker Ord Minnett rates the business as ‘hold’ with a price target of $44. That implies a mid-teen rise for the ASX mining share. It notes the lower resource prices, which is why it reduced its price target slightly.

The post Should investors dig the BHP share price in July? appeared first on The Motley Fool Australia.

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More reading

• Why Beach, BHP, Bubs, and Galileo Mining shares are sinking
• Top brokers name 3 ASX shares to buy today
• ASX lithium stocks avoid share price shock amid commodities lashing
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• 5 things to watch on the ASX 200 on Wednesday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX renewable energy shares incorporate a range of companies involved in producing clean energy sources.

They span several sectors including resources, materials, and energy. Think lithium explorers, battery producers, electric vehicle manufacturers, clean energy providers… arguably, they’re all in the renewables space. But for now, let’s just focus on clean power producers.

Power has been a hot topic in the Australian economy of late. Electricity prices have skyrocketed and are contributing significantly to rising inflation, which is currently running at 5.1% per annum.

This problem highlights the urgent need for more renewable energy sources. Not only to lower power costs for consumers but also to support a lurching grid at risk of more frequent blackouts and outages.

So, why did several ASX renewable energy shares fall in June?

ASX renewable energy shares dip in June

Well, let’s remember that ASX renewable shares are a relatively young and growing part of the market. And like any growth sector, it will have its ups and downs — and that’s what we saw in June.

Mind you, June was a volatile month for ASX shares in general. The S&P/ASX 200 Index (ASX: XJO) lost 8.9% and the S&P/ASX All Ordinaries Index (ASX: XAO) lost 9.5% over the month.

First up, let’s look at the broad picture.

Clean energy shares generally form part of the utilities segment of the ASX energy sector. The S&P/ASX 200 Energy Index (ASX: XEJ) fell 0.3% in June and is up 16.9% over the year to date.

There’s no index for ASX renewable shares, however, we can look to the VanEck Global Clean Energy ETF (ASX: CLNE) for guidance. It’s an exchange-traded fund trading on the ASX and it’s chock-a-block full of global renewable energy companies. So it serves as a good proxy for ASX renewable energy shares.

The VanEck Global Clean Energy ETF share price dipped 2.5% in June. Year to date, it’s down 9.6%.

Here’s how some of the big players performed

Let’s look at the performance of the bigger players among ASX renewable energy shares in June.

The Meridian Energy Ltd (ASX: MEZ) share price dropped 3% in June. Year to date, Meridian shares are down 6.5%.

Meridian is New Zealand’s largest energy producer and uses 100% renewables. It owns five wind farms, scores of commercial solar arrays, and seven hydropower stations, including the country’s largest.

The Mercury General Corporation (ASX: MCY) share price dropped 9.5% in June. Year to date, Mercury shares are down 16.5%.

Mercury is another New Zealand-based green energy provider that uses 100% renewables. The company owns nine hydro stations that supply 10% of the country’s electricity annually. It owns five geothermal plants and four wind farms. It’s currently building what will be New Zealand’s largest wind farm.

The Infratil Ltd (ASX: IFT) share price rose by 0.6% in June. Year to date, Infratil shares are down 7.7%.

Infratil is a different kind of ASX renewable energy share. It’s an infrastructure investment company that owns several green energy assets in New Zealand.

Genesis Energy Ltd (ASX: GNE) shares lost 0.15% in value in June. Year to date, Genesis shares are down 6.9%.

Genesis is a leading New Zealand electricity and gas retailer that owns a bunch of thermal and renewable generation assets.

Some ASX renewable shares had a shocker

The Genex Power Ltd (ASX: GNX) share price dropped 14% in June. Year to date, Genex shares are down 32.5%.

Genex is an Australian power generation company specialising in the generation and storage of renewable energy.

Ongoing challenges for ASX renewable energy shares

As my Fool colleague Bernd Struben reported in March, the renewables sector has experienced years of underinvestment, so it’s difficult to ramp up production rapidly to meet today’s soaring demand.

Plus, many clean energy companies are spending a lot — as you do when you’re in growth mode — which is narrowing profit margins.

And it appears ASX investors don’t like that, especially when a booming commodities cycle is delivering massive profits to the big resources companies digging fossil fuels out of the ground.

The post Here’s why ASX renewable shares slipped in June appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Should investors dig the BHP share price in July?
• Why did the Lynas Rare Earths share price tumble in June?
• Telstra share price rises as Optus folds to inflation
• What Tesla’s production slowdown could mean for its stock

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lynas Rare Earths Ltd (ASX: LYC) share price struggled in June, but it was not alone among S&P/ASX 200 Materials Index (ASX: XMJ) shares.

Lynas shares shed more than 11% in June. At the close of trade on Wednesday, they have dropped another 5.12%, finishing the day at $8.53 each.

So how did the Lynas Rare Earths share price perform in June?

What happened in June?

Lynas Rare Earths shares fell in June, but they were not alone within the sector. For perspective, the ASX 200 Materials Index slid more than 12% during the month.

Lynas is mining the Mt Weld mine in Western Australia. The company touts it as one of the “world’s premier rare earths deposits”. Lynas also drives rare earths processing from the “world’s largest” processing plant in Malaysia.

Investors appeared to sell down Lynas shares amid a wider market selloff in June, despite the company releasing some positive news.

Multiple shares involved in battery technology for the electric vehicle (EV) market fell during the month. Lithium share Pilbara Minerals Ltd (ASX: PLS) descended 22% in June while metals miner IGO Ltd (ASX: IGO) lost 21%.

In mid-June, Lynas USA, a subsidiary of the company, signed a US$120 million contract for a commercial rare earths separation facility.

The contract provides an opportunity for Lynas to operate in the United States. The deal will complement the company’s light rare earth separation facility. It also involves working with the United States Department of Defense (DOD).

And this agreement appears to be attracting attention from China. According to recent reports, Lynas has recently been subject to a pro-China social media campaign. It calls for protests against the company’s facility in Texas. The US DOD responded to this campaign, saying:

The Department of Defense is aware of the recent disinformation campaign, first reported by Mandiant, against Lynas Rare Earth Ltd…the department has engaged the relevant interagency stakeholders and partner nations to assist in reviewing the matter.

Lynas Rare Earths share price snapshot

Lynas Rare Earth shares have gained around 50% in the past year, but they have dived 16% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed about 9% in a year.

Lynas has a market capitalisation of about $7.7 billion based on today’s share price.

The post Why did the Lynas Rare Earths share price tumble in June? appeared first on The Motley Fool Australia.

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More reading

• Own Lynas shares? Here’s the latest challenge faced by the rare earths miner
• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• Guess which ASX 200 mining shares these experts are backing
• How is the Lynas share price performing against its sector this month?
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telstra Corporation Ltd (ASX: TLS) share price is on form on Wednesday.

In afternoon trade, the telco giant’s shares are up 1.5% to $3.95.

Why is the Telstra share price rising?

The catalyst for the rise in the Telstra share price today appears to be news that Optus is lifting the prices of its legacy mobile plans.

Optus has informed customers on its legacy $39/$49/$59 plans that pricing will increase $4 per month from 8 August to $43/$53/$63, respectively. The telco explained that the higher pricing was justified because of ongoing network investment and cost inflation.

Why is this good news?

Goldman Sachs highlights that this is good news for Telstra, which also announced price increases recently, because it “is another positive sign supporting a rational mobile market.”

And while Optus has yet to increase its in-market pricing, the broker expects this to happen before the end of the year.

Furthermore, although TPG Telecom Ltd (ASX: TPG) has not followed suit yet, Goldman isn’t overly surprised. This is because the ACCC is currently looking at its proposed Multi-Operator Core Network (MOCN) deal with Telstra.

Goldman explained:

We expect TPG will wait until early 2023 before making a decision. At this point its proposed MOCN deal with Telstra will have been implemented if successful (ACCC ruling due by 17th October), and the company will face the choice of targeting ARPU growth or market share. Commentary at its recent Investor Day was non-committal on this, which we see as unsurprising given the ongoing ACCC review.

Are Telstra’s shares a buy?

Goldman Sachs currently has a neutral rating on Telstra’s shares. However, with a price target of $4.30, this still implies potential upside of 9% for investors.

And if you include dividends, the potential total return stretches to approximately 13% over the next 12 months.

The post Telstra share price rises as Optus folds to inflation appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares that analysts are tipping as buys in July
• The Telstra share price outperformed the ASX 200 in June
• Could July be a good month for the Telstra share price?
• Telstra share price slides as Optus exec ramps up calls for TPG deal to be canned
• 4 ASX dividend shares to buy that aren’t banks or miners: expert

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) has grown to become the largest producer of electric vehicles (EVs) worldwide. It has always been a trailblazer, leading this new industry with its innovation not just inside each car but also in the manufacturing process.

But 2022 has been challenging. The automotive industry is facing supply chain disruptions that have slowed production, and a brutal sell-off in the stock market has sent company valuations in the tech sector plunging. 

Tesla just reported its production figures for the second quarter of 2022, and it revealed the largest sequential drop in two years. While this is a short-term speed bump, it shouldn’t alter the company’s long-term trajectory. 

Tesla management is navigating tough times

The automotive industry has grappled with shortages of key vehicle components like semiconductors since the pandemic began, as lockdowns across Europe and Asia caused production to grind to a halt. Semiconductors are advanced computer chips that power the digital features inside new cars, but in Tesla’s electric vehicles, they do far more.

The infotainment system inside a Tesla is responsible for controlling many of the car’s core functions like charging and comfort, in addition to enabling the user to browse the internet and play games. It’s a step above the processing power required in a traditional combustion engine car, to the point that semiconductor giant Micron Technology has described electric vehicles as data centers on wheels.

Tesla has navigated the chip shortage well, generating quarterly production growth for most of the past two years. But it was hit with a further challenge when its production facility in Shanghai, China, was shut down for the majority of April as part of COVID-related temporary closings. The facility has an annual manufacturing capacity of 450,000 vehicles, which is almost half of the company’s total capacity (until new factories in Texas, Berlin and Germany ramp up), so the downtime heavily impacted second-quarter output. 

The slowdown at Tesla might be temporary

When all was said and done, Tesla produced 258,580 vehicles in Q2, which was a 15% drop compared to Q1. But it was still 25% higher than the number of cars produced a year ago, in Q2 2021. 

In the commentary that accompanied the Q2 numbers, Tesla informed investors that June was actually its highest production month in the company’s history. It suggests two things: The Shanghai plant is nearly back in full swing, and supply chain issues (like chip shortages) are beginning to resolve.

But it’s also attributable to the fact that Tesla’s two brand new gigafactories in the U.S. and Germany have begun to manufacture vehicles. Once they ramp up to full capacity, it’s expected that Tesla could produce 2 million cars every year, which is almost double the number it could make with its existing factories. 

That’s a sign that the Q2 production slump might be a mere speed bump on the road to much, much higher numbers in the near future. Given Tesla stock is currently down 45% from its all-time high, this might be an opportunity for investors to build a position. For those deploying smaller amounts of capital, keep an eye out for the company’s stock split later this year.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What Tesla’s production slowdown could mean for its stock appeared first on The Motley Fool Australia.

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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Australian markets are rangebound today with tech and financial leading into afternoon trade.

ASX 200 bank shares have been net-winners today, following news that the Reserve Bank (RBA) hiked the cash rate by 50 basis points to 1.35% on Tuesday.

Investors have rallied the sector amid speculation the hikes may be passed immediately through to consumers.

In broad market moves, the S&P/ASX 200 Index (ASX: XJO) is rangebound today.

Tackling macroeconomic worries

The rate increases are also hoped to compress the level of inflation, a common theme currently plaguing equity markets.

“Global inflation is high,” the RBA said.

“Monetary policy globally is responding to this higher inflation, although it will be some time yet before inflation returns to target in most countries,” it added.

The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

ASX 200 bank shares rise amid rate hikes

In an effort to uphold net interest income (NII) and net interest margins (NIMs), the big Australian banks have folded the cash rate hikes into their lending rates.

It wasn’t long after the RBA’s decision that the Commonwealth Bank of Australia (ASX: CBA) passed on the full 50 basis point increase to its standard variable mortgage rates.

Macquarie Group Ltd (ASX: MQG) and Australia New Zealand Banking Group Ltd (ASX: ANZ) each passed through the 0.5% raise as well.

CBA, Macquarie and ANZ are each up around 1% on the day at the time of writing.

However, CBA and Macquarie have also passed on rate increases to their deposit rates. For example, CBA also fed the 50 basis point jump through to its GoalSaver and YouthSaver accounts.

ANZ also followed suit and now offers a 2.5% rate of interest on an “advance notice” term deposit with an 11-month maturity.

As a result of the shift in rates, investors have rallied ASX bank shares amid speculation the interest rate rises could be a net positive to NII and NIMs.

Should that be the case, it would address the NIM issue that’s been festering amongst ASX bank shares for some time.

The post Why are ASX 200 bank shares responding positively to higher interest rates? appeared first on The Motley Fool Australia.

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• What happened with the CBA share price in the 2022 financial year? 
• What’s going on with ASX 200 bank shares on Tuesday?
• How did the Macquarie share price perform in June?
• CBA share price slips as analyst warns of $2 billion Klarna scratch
• Why did the ANZ share price underperform the ASX 200 in June?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Santos Ltd (ASX: STO) share price had a turbulent year in FY22 and managed to finish in the green.

Investors rallied behind commodity giants like Santos, particularly as the new year rolled around. On the last trading day of June, Santos shares were trading at $7.42 apiece.

The company’s share price has taken a tumble since then. It’s down 5.88% so far today at $7.04.

In broader market moves today, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also down 5.42% on the back of falling commodity prices.

Santos compounds upward in FY22

The big story behind moves in the Santos share price is the tremendous rally in oil and gas markets that have ensued since the pandemic.

In the 12 months of FY22, Brent Crude oil surged more than 45% to trade at US$109 per barrel on June 30.

It nudged past US$123 per barrel back in March 2022, its highest level since 2014.

Meanwhile, natural gas posted triple-digit returns in FY22 amid extreme volatility, particularly in European gas contracts.

These moves are plotted against the Santos share price below.

The oil and gas trade was certainly active this past financial year with momentum picking up from February amid tensions in Europe.

The bullish momentum in these commodity markets provided the perfect underlying conditions for the Santos share price to rally back near its pre-pandemic high.

It topped $8.53 before entering a consolidation phase and levelling off toward the end of June.

As such, the Santos share price had a successful FY22, rewarding shareholders in the process. It gained around 4% in that time.

The post How did the Santos share price perform in FY22? appeared first on The Motley Fool Australia.

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• How is the oil price plunge impacting ASX 200 oil shares today?
• Leaking oil price sends Santos shares into the red
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Santos and Woodside on watch after oil prices crash 10%
• 2 bargain ASX shares with good times ahead: expert

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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