The Tyro Payments Ltd (ASX: TYR) share price is taking off on Wednesday, and it’s not alone in its gains.

The All Ordinaries Index (ASX: XAO) financial technology share is joined in the green by many of its tech-focused peers as the sector outperforms.

At the time of writing, the Tyro Payments share price is 70 cents, 10.24% higher than its previous close.

For context, the broader market is struggling today. The S&P/ASX 200 Index (ASX: XJO) is down 0.35% while the All Ords has slipped 0.31%.

Let’s take a closer look at what’s going on with the ASX tech sector today.

Tyro Payments share price lifts on Wednesday

The Tyro Payments share price is launching higher alongside its home sector. The S&P/ASX All Technology Index (ASX: XTX) is up 3.46% right now while the S&P/ASX 200 Information Technology Index (ASX: XIJ) has lifted 3.36%

Tech stocks’ strong performance comes amid falling bond yields and rising interest rates.

The Reserve Bank of Australia lifted the nation’s cash rate 50 basis points to 1.35% in its July meeting yesterday. But that hasn’t seemingly dinted ASX tech shares.

Any potential rate-related shock seems to have been absorbed as US Treasury note 10-year yields slipped to 2.8% overnight.

As my Fool colleague Zach reported earlier today, government bond yields and the valuation of risk assets (such as shares) move in opposites.  

Thus, the shift in bond yields may have bolstered ASX tech shares like Tyro Payments.

But today’s gain hasn’t been enough to boost the stock back into the long-term green. The Tyro Payments share price has tumbled 76% year to date and 81% over the last 12 months.

The post Why is the Tyro Payments share price blasting 10% higher? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why BWX, Sayona Mining, Tyro, and Woodside shares are sinking
• Why Carsales, EOS, Imugene, and Tyro shares are sinking today
• These 3 ASX All Ordinaries shares are hitting new 52-week lows today
• Tyro share price sinks 20% to new record low, what’s going on?
• 2 ASX shares rated as strong buys by several brokers

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zgq2ukF

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline amid weakness in the resources sector. At the time of writing, the benchmark index is down 0.4% to 6,601.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 6% to $74.60. This may have been driven by a positive reaction from brokers and investors to the pizza chain operator’s decision to add a service fee to its deliveries. This fee is expected to help offset cost inflation and support profit margins.

EML Payments Ltd (ASX: EML)

The EML share price is up 11% to $1.43. Investors have been buying this payments company’s shares following a rebound in the tech sector and the release of a positive announcement. The latter reveals that EML has signed an agreement with Spain’s national post office network, Correos. EML will support the issuing of a government contract known as the Bono Cultural Joven 2022 (Youth Cultural Bonus) tender.

Talga Group Ltd (ASX: TLG)

The Talga share price is up 3% to $1.13. This morning this graphite developer revealed that the first drilling of the 2km long Niska Link target has intersected wide and high grade graphite zones at its 100% owned Vittangi graphite project in northern Sweden.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is up 3% to $36.96. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded this retail giant’s shares to a neutral rating from sell and increased their price target on them to $37.00. Food inflation and demand for private label goods are expected to benefit Woolworths’ supermarkets.

The post Why Domino’s, EML, Talga, and Woolworths shares are pushing higher appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• These 3 ASX 200 tech shares are on fire today
• EML share price leaps 16% on Spanish government stimulus contract
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Why experts rate these top ASX dividend shares as buys

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 positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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.

from The Motley Fool Australia https://ift.tt/Hha1jLP

It may not feel like your traditional end of year right now, but we’ve just seen the end of FY2022 and the turn of the new 2023 financial year. FY2022 was not kind to ASX shares and the S&P/ASX 200 Index (ASX: XJO), no way around it. Between 1 July 2021 and 30 June 2022, the ASX 200 lost a nasty 10.19% of its value. But what of the Westpac Banking Corp (ASX: WBC) share price?

As an ASX 200 big four bank, Westpac is a major player on the ASX share market. In fact, Westpac is currently the fifth-largest share in the ASX 200 index. So it tends to have a significant influence on the entire market.

How did the Westpac share price go over FY2022?

Westpac shares started FY2022 at $25.81 each. Last Thursday, the ASX bank closed at just $19.50. That means Westpac lost 24.45% from its share price over FY2022. Not exactly an inspiring performance, one could argue. Especially considering how badly the bank underperformed the ASX 200 as well. Most of these losses occurred last month, which saw Westpac shares lose 18% of their value over June alone.

It’s not as though Westpac was just mirroring the ASX banking sector either. FY2022 wasn’t a good year for ASX 200 banks overall. But consider the Commonwealth Bank of Australia (ASX: CBA) share price. CBA shares did fall over FY2022. But only by 9.5%, which makes Westpac’s 24.45% drop look even more painful.

The only other big four bank that came close to Westpac’s dismal performance was Australia and New Zealand Banking Group Ltd (ASX: ANZ). It fell 21.85% over the financial year just gone. National Australia Bank Ltd (ASX: NAB) defied the trend of its ASX 200 banking peers. It actually rose by 4.46% over FY2022.

But back to Westpac. As is the case with all ASX banking shares, Westpac did fork out some hefty dividends over FY2022 that would have helped ease the pain of the 24.45% drop.

The bank paid out a total of $1.21 in fully-franked dividends per share over FY2022. That gives Westpac shares a trailing yield of 6.08% on current pricing. So that knocks around 6% off of the share price’s losses over the financial year.

Is Westpac a buy today?

So, what’s next for Westpac in FY2023? Well, as we covered earlier this week, broker Citi is expecting big things. This ASX broker has given Westpac shares a 12-month share price target of $29. That would result in a potential upside of more than 45% from where the bank is currently. But we shall have to wait and see if Citi is on the money there.

In the meantime, the current Westpac share price gives this ASX 200 bank a market capitalisation of $69.7 billion.

The post Here’s a look at the Westpac share price’s dismal 2022 financial year appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s going on with ASX 200 bank shares on Tuesday?
• How did the Vanguard Australian Shares Index ETF perform in June?
• Why ASX 200 value shares are surviving the sell-off better than growth shares
• Why did the Westpac share price crash 18% in June?
• June was a terrible month for ASX 200 bank shares. Here’s why

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/YGwCglF

The CSL Limited (ASX: CSL) share price has jumped ahead in the past month, but some analysts are tipping it to go higher.

CSL shares have climbed more than 5% since 6 June this year and are currently trading at $284.94. In today’s trade, the CSL share price is leaping more than 2%. For perspective, the S&P/ASX 200 Index (ASX: XJO) has descended more than 8% in the same time frame.

So why are some analysts predicting that CSL could rise?

CSL tipped to outperform

CSL is an ASX healthcare share with two major revenue streams- plasma products and vaccines. The blood plasma division is responsible for about 70% of the revenue, while the flu vaccine contributes about 26%.

In a recent note, analysts at Macquarie have placed a $312 price target on the CSL share price and maintained an outperform rating.

This price target is nearly 9.5% more than the CSL share price at the time of writing.

Macquarie has tipped the CSL share price to rise due to foot traffic at plasma collection centres jumping in the United States in June.

Due to this data, the broker believes plasma collections could be at levels seen prior to COVID.

Meanwhile, investment management partner Cameron Harrison is also predicting the CSL share price could reach levels beyond $300.

Clark said demand for the company’s plasma products is “very strong” due to supplies falling during COVID-19 lockdowns, as my Foolish colleague Tristan reported.

Finally, Citi analysts have also recently tipped the company’s share price to increase with a $330 price target. In late June, Citi said:

Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume.

Share price snapshot

The CSL share price leapt nearly 3% in the past year. In the year to date, it has descended about 2%.

For perspective, the benchmark ASX 200 has lost close to 9% in the past year.

CSL has a mammoth market capitalisation of about $137 billion based on today’s share price.

The post Beating the benchmark: Why this broker is betting on the CSL share price for outperformance appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s what happened to the CSL share price in June
• How did the Vanguard Australian Shares Index ETF perform in June?
• Leading brokers name 3 ASX shares to buy today
• Here’s how ASX 200 healthcare shares performed in June
• Why a CSL share price above $300 is on the cards: expert

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 positions in and has recommended CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/AXxkNbV

Most ASX hydrogen shares suffered through June, with some tumbling more than 35% over the month.

Here’s how some of the market’s favourite ASX hydrogen-focused shares performed last month:

• Fortescue Metals Group Limited (ASX: FMG) – down 12.8%
• Hazer Group Ltd (ASX: HZR) – down 3.8%
• Pure Hydrogen Corporation (ASX: PH2) – down 37.14%
• Sparc Technologies Ltd (ASX: SPN) – down 31.18%
• APA Group (ASX: APA) – down 0.97%

For context, the S&P/ASX 200 Index (ASX: XJO) fell 8.9% last month while the All Ordinaries Index (ASX: XAO) slumped 9.5%.

So, what news did these ASX hydrogen shares announce in June? Read on to find out.

The latest news from ASX hydrogen shares

Some of the market’s favourite hydrogen shares had a poor month’s trade in June despite plenty of exciting news.

Pure Hydrogen, for example, was among the worst-performing ASX hydrogen shares in June. That’s despite the successful initial public offering (IPO) of Botala Energy – which is around 20% owned by Pure Hydrogen – and a favourable tribunal finding.

However, the Pure Hydrogen share price was put in the freezer late last month. It will remain frozen while the ASX makes inquiries into a presentation released by the company.

Meanwhile, ASX 200 giant Fortescue’s green energy leg Fortescue Future Industries (FFI), alongside some notable German companies, released a set of recommendations to the European nation’s government and industry. The Green Hydrogen Taskforce’s recommendations outline a roadmap for Germany to import large amounts of green hydrogen from Australia.

Speaking of FFI, there was also big news from its joint venture partner Sparc last month. The company announced progress that will ensure the commercialisation of its graphene additive coating products.

Finally, ASX hydrogen share Hazer completed construction and commissioning at its commercial demonstration plant and introduced a new CEO. While APA announced it will build a major hydrogen-blend-ready gas pipeline.

Sadly, none of that was enough to save these ASX hydrogen shares, and they all ended June in the red.

The post ASX hydrogen shares announced some big news last month, so why did so many end June in the red? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX lithium stocks avoid share price shock amid commodities lashing
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Why is the Fortescue share price slipping 5% today?
• Why did the Fortescue share price sink in FY22?
• 5 things to watch on the ASX 200 on Tuesday

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 APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6H2hnKF

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.

What happened

Shares of the large crypto exchange Coinbase (NASDAQ: COIN) plummeted more than 81% in the first six months of 2022, according to data provided by S&P Global Market Intelligence. The main reasons for the huge decline are falling cryptocurrency prices and less crypto-trading activity.

So what

Being the largest U.S. crypto exchange, Coinbase makes the bulk of its revenue from commissions on retail trades, so naturally, the stock has a good amount of correlation to the price and movement of large cryptocurrencies like Bitcoin (CRYPTO: BTC).

The price of Bitcoin fell roughly 58% in the first half of the year as inflation set in and the Federal Reserve rapidly raised its benchmark overnight lending rate, the federal funds rate. This usually does not bode well for riskier assets because it makes safer assets yield more.

In the first quarter of this year, Coinbase reported $1.16 billion of revenue, down from nearly $2.5 billion in the fourth quarter of 2021 and nearly $1.6 billion in the first quarter of 2021. The main culprit was the decline in retail-transaction revenue.

But the fall in the price of Bitcoin and other cryptocurrencies has not been the only issue. Coinbase has also seen the fee it charges on retail trades cut significantly as more competition piles into the space. Coinbase currently charges 1% on all crypto transactions, according to its website. That number used to be as high as 4%.

Not too long ago, some of Coinbase’s competitors eliminated fees altogether on certain crypto trades, making investors fear that fees at Coinbase could drop further.

What now

While Coinbase has suffered as the crypto winter has set in, there’s no doubt that the company will need to figure out how to diversify revenue with fees facing further compression.

Coinbase is clearly aware of the situation and has made efforts to do this, including launching a subscription service and offering users more ways to use the platform other than just trading.

CEO Brian Armstrong noted on the company’s last earnings call that 54% of active users are on Coinbase for something other than just trading, including interacting with merchants, yield farming, and interacting with decentralized applications.

Although Coinbase could face more pressure near term, with its size and brand power, I do think it will continue to find ways to stay relevant so long as cryptocurrencies stay relevant.

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

The post Here’s why Coinbase stock fell 81% in the first half of 2022 appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Coinbase Plunges on Crypto and Celsius Fears, but This Is the Real Threat

Bram Berkowitz has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Coinbase Global, Inc. The Motley Fool Australia owns and has recommended Bitcoin. 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.

from The Motley Fool Australia https://ift.tt/gH8dBjp

The Woodside Energy Group Ltd (ASX: WDS) share price is heading south on Wednesday despite no announcements from the company.

At the time of writing, the energy producer’s shares are swapping hands at $30.28, down 6.66%.

Why are Woodside shares backtracking on Wednesday?

Investors are offloading the Woodside share price following a broader fall across the S&P/ASX 200 Energy (ASX: XEJ) index today.

Comprising 11 companies that operate in the oil, gas and coal sector, the index is shedding 5.55% to 9,593.2 points.

The price of oil slid to around US$100 per barrel as market fears re-emerged regarding a looming recession.

In particular, the West Texas Intermediate (WTI) has now fallen by almost 10% this week to US$99.99 per barrel.

Furthermore, the US dollar rose overnight as the Federal Reserve raises interest rates to cool down 40-year high inflation levels.

The central bank recently handed down a 0.75% interest rate hike that spooked financial markets. A more aggressive monetary tightening policy to combat inflation is sparking concerns about an impending recession in 2023.

Nonetheless, with oil prices backtracking, this will likely put a squeeze on Woodside’s earnings for the short term.

Shares in fellow energy giant, Santos Ltd (ASX: STO) are also treading 4.68% lower to $7.13 apiece.

Woodside share price summary

Despite tumbling today, it has been a positive 12 months for the Woodside share price, up 25%.

When looking at year-to-date, its shares have further accelerated by 38% following the Russian war in Ukraine.

It’s worth noting that the company’s shares reached a 52-week high of $35.77 last month before tracking slightly lower.

In terms of market capitalisation, Woodside is the largest energy company on the ASX with a valuation of approximately $61.60 billion.

The post Why is the Woodside Energy share price slumping 6% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How is the oil price plunge impacting ASX 200 oil shares today?
• What’s in store for the Woodside Energy share price in July?
• Santos and Woodside on watch after oil prices crash 10%
• Here are the top 10 ASX shares today
• Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday?

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/lpv4Qbx

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating but cut their price target on this mining giant’s shares to $50.00. While Macquarie has trimmed its earnings estimates to reflect commodity price and foreign exchange movements, it remains positive. The broker continues to see BHP as the best large cap mining exposure. The BHP share price is trading at $38.14 this afternoon.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Ord Minnett reveals that its analysts have retained their buy rating and $99.00 price target on this pizza chain operator’s shares. The broker highlights that Domino’s has introduced a 6% service fee on deliveries to offset cost inflation. Its analysts believe this fee will boost profitability without impacting its position as a value option in the quick service restaurant market. The Domino’s share price is fetching $74.07 on Wednesday.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Credit Suisse have retained their outperform rating and $13.50 price target on this wine company’s shares. According to the note, the broker believes that Treasury Wine will benefit from a sharp decline in grape prices following a strong 2022 harvest. In addition, Credit Suisse sees opportunities for the company to increase prices in line with inflation to boost its margins. The Treasury Wine share price is trading at $11.30 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 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
• How did the Vanguard Australian Shares Index ETF perform in June?
• Why ASX 200 value shares are surviving the sell-off better than growth shares

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 recommended Dominos Pizza Enterprises Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OLye2Qn

The Ethereum (CRYPTO: ETH) price almost halved in value in June.

Depending on your time zone, Ethereum began the month trading for US$1,989. By the evening of 30 June, it was trading for US$1,025, down 47%.

The world’s number two token by market cap never regained the level it opened June with, hitting as low as US$896 mid-month, according to data from CoinMarketCap.

The Ethereum price has rebounded slightly in July, currently trading for US$1,118. Still, that leaves the crypto down 77% from its 16 November record high.

Why did the Ethereum price collapse in June?

To be fair, it was far from just Ethereum that sold off heavily last month.

Bitcoin (CRYPTO: BTC) fell 41% and most every single top crypto – save the stablecoins – was deep in the red as well.

There were a few hefty tailwinds at work here, the strongest being fast rising prices and aggressive interest rate increases from lead central banks. This saw risk assets, like cryptos high growth tech shares, all come under pressure last month, with the NASDAQ closing down 9% and the S&P/ASX All Technology Index (ASX: XTX) losing 10%.

What else pressured prices?

While Ethereum’s 8 June proof-of-work switchover to a proof-of-stake protocol test went without a major hitch, this success was overshadowed by wider concerns about the stability in the crypto markets.

Only one month after markets were roiled by the meltdown of Terra’s USD stable coin and its supporting token Luna, crypto lender Celsius (CRYPTO: CEL), which promised investors yields of up to 17%, halted withdrawals as investors speculated it might not be able to meet those lofty obligations.

The Ethereum price tumbled on the news.

Commenting on Celsius’ woes at the time, Vijay Ayyar, vice president of corporate development Luno, said, “The Celsius news added fuel to the fire, adding to the uncertainty in the market. There is a lot of pressure on prices as we go into the week of Fed decision coupled with concerns on the protocols offering high-yield products.”

The post The Ethereum price collapsed 47% in June. Here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How did the price of crypto assets perform in June?
• Ethereum price falls after hackers begin laundering $100 million bridge exploit
• What one tech guru thinks of the current crypto market
• Why Bitcoin, Ethereum, and Dogecoin are down today
• The ATO is collecting crypto taxes. Here are 5 handy expert tips come tax time

Motley Fool contributor Bernd Struben 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 Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ngwERtk

ASX 200 tech shares have lifted and are currently leading the other Australian sectors during Wednesday’s trade.

The S&P/ASX All Technology Index (ASX: XTX) has jumped over 3% into the green, extending the past week’s gains to 2.5%.

Meanwhile, several names have pushed higher and are standouts amongst the pack. Let’s take a look.

Why are ASX 200 tech shares tracking higher?

Yields on long-dated bonds have wound back in recent weeks leading to a re-rating of tech shares in the near term.

This is despite the Reserve Bank (RBA) lifting the target cash rate by another 50 basis points to 1.35% in its monthly meeting yesterday.

The United States Treasury note 10-year yield came in to 2.8% overnight, down from highs of 3.4% on 14 June. Meanwhile, the Australian 10-year yield is commanding 3.5%, off a high of 4% in mid-June as well.

Government bond yields are inversely related to the valuation of risk assets like shares. As yields rise, valuations compress, and vice-versa.

Current yields often reflect the attitude towards risk in financial markets, but also represent the situation in the real economy as well.

With macroeconomic themes of inflation, surging interest rates, geopolitical tension, and supply shortages, there’s little room to hide for investors.

However, with yields retracing, it appears investors have regained some near-term confidence in the sector and hence several ASX 200 tech shares are catching a bid today.

The shift in short-term sentiment has been good for names such as Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU).

Investors have bid for each of these names up by 5.85%, 3.8% and 3.5% respectively since the opening of trade today.

That puts them ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s 50 basis point drop today. Three-month returns are seen below.

The post Why are ASX 200 tech shares sprinting higher today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How did Xero shares do in the 2022 financial year?
• Top broker picks two ASX 200 tech shares for today’s economy
• Here are the top 10 ASX shares today
• Analysts name 2 ASX growth shares to buy this week
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

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 positions in and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UVsf75X