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For a third consecutive month, the Reserve Bank of Australia (RBA), as expected, lifted the cash rate by 50 basis points today.

This brings the cash rate to 1.85% as the central bank tries to fight inflation, currently running at its highest level since the early 1990s.

The RBA is expecting inflation to peak later this year but doesn’t expect it to fall towards the top end of its target range until 2024.

So much for inflation being transitory.

Somewhat counterintuitively, the ASX 200 took the increase in its stride, paring its losses to trade relatively flat on Tuesday.

Prior to today, market expectations were for the cash rate to peak at around 3.3% in March next year before edging lower later next year and early 2024.

Equity bulls are already salivating at the prospect of interest rate cuts, a possibility that helped send the ASX 200 almost 6% higher in July.

The ‘central bank put’ is back in play… even whilst interest rates are still rising. Once a bull, always a bull. Yes, I’m a signed-up, paying member of the club.

It seems I may not be alone, with Scott Haslem, chief investment officer at Crestone Wealth Management recently saying in the AFR that bond yields have just about peaked, something that “signals a respite for many long-duration equities, including quality tech exposures”.

As if to emphasise the point, the S&P/ASX All Technology Index (ASX: XTX) moved sharply higher after the RBA decision.

Bears will point to a raft of challenges, including falling house prices, higher mortgage repayments, lower consumer confidence, lower corporate profitability, the prospect of higher inflation for longer, and the prospect of recession.

All this comes against a backdrop of the lowest unemployment rate for almost 50 years and the RBA’s forecast of economic growth of over 3% in 2022, moderating to 1.75% in each of the following two years.

Close your eyes and look at the numbers and you’d be excused for assuming it’s plain sailing ahead.

I’m not so naive to think everything is golden.

With household debt running at record levels, and with veteran bank analyst Jon Mott saying up to $250 billion of mortgages taken out in the last few years could be at risk of delinquency, there are clearly tougher times ahead.

Equity markets are forward-looking. As opposed to June — a truly horror month for many investors, particularly for small cap stocks — even in the face of today’s RBA interest rate hike, markets are looking ahead to inflation peaking and to the day central banks get back to “the good old days” and start cutting interest rates again.

It won’t be plain sailing. It won’t be the COVID bounce we experienced in 2020. But neither will it be GFC II. The next bull market may already have begun.

The post Here’s why the next bull market may have already begun appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares rocking new, multi-year highs on Tuesday
• Here are the top 10 ASX 200 shares today
• ASX 200 jumps higher as RBA lifts interest rates by another 0.50%
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• What’s going on with the CSL share price on Tuesday?

Motley Fool contributor Bruce Jackson 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price could be in the buy zone.

That’s the view of analysts at Goldman Sachs, which have just upgraded the regional bank’s shares.

What is Goldman saying about the Bendigo and Adelaide Bank share price?

According to a note out of the investment bank, its analysts have upgraded the company’s shares to a buy rating from neutral with an improved price target of $11.89.

Based on the current Bendigo and Adelaide Bank share price of $10.67, this implies potential upside of 11% for investors over the next 12 months.

But it gets better. Goldman is forecasting a 54 cents per share fully franked dividend in FY 2022 and then 62 cents per share in FY 2023. This represents dividend yields of 5.1% and 5.8%, respectively, for investors over the next couple of years.

Why is Goldman bullish?

Goldman is bullish on the Bendigo and Adelaide Bank share price for a few reasons.

This includes the bank’s strong and improving volume momentum and exposure to rising rates. In fact, the broker thinks it is the best-placed bank for the latter.

Its analysts explained:

BEN provides the best exposure of the banks to rising rates, given its overall higher exposure to deposit funding, and higher exposure to rate inert deposits. Furthermore, BEN does not replicate its exposure to higher rates, which will mean the more aggressive cash rate hikes will flow through its P&L quicker than peers. Furthermore, we highlight that to date, BEN has exhibited better discipline than its regional peers on deposit repricing in the face of higher cash rates, which should also support its NIM performance.

Goldman also believes the bank is well-positioned to cope with an economic downturn and a spike in bad debts should would occur.

Our assessment of mid-cycle losses has BEN’s exposures as one of the most conservative of the banks we cover, with an estimated over-the-cycle loss rate of just 15 bp, versus 22 bp on average for the major banks. This leaves it well-placed should the macro environment deteriorate more than what is currently implied by our forecasts.

All in all, the broker sees Bendigo and Adelaide Bank as a great option for ASX investors looking for exposure to the banking sector.

The post Why Goldman Sachs says the Bendigo and Adelaide Bank share price is great value appeared first on The Motley Fool Australia.

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More reading

• Is the Bendigo Bank share price a buy ahead of next month’s earnings?
• What might ANZ’s Suncorp deal mean for competition among ASX 200 banks?
• What’s the outlook in FY23 for ASX 200 bank shares?
• Here are the 5 best ASX 200 bank shares of FY22
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note

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 Bendigo and Adelaide Bank 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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Overall, it wasn’t too pleasant a day for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. The ASX 200 spent most of the day deep in red territory, although it did recover late afternoon to record an overall loss of only 0.07% for the day. But that didn’t stop three ASX 200 shares from hitting new, multi-year highs today.

3 ASX 200 shares that hit new multi-year highs today

Coles Group Ltd (ASX: COL)

It certainly wasn’t ‘down, down’ for the Coles share price today, with the ASX 200 supermarket operator hitting a new record high. Coles shares ended up closing at $19.21 each today, up a healthy 1.91%.

But Coles rose as high as $19.28 around midday. That’s the company’s highest-ever share price since it was kicked out of its old parent company Wesfarmers Ltd (ASX: WES) in 2018.

There wasn’t anything specific that prompted Coles shares to hit this new high watermark, although we did take a look at some of the underlying factors behind this rise earlier today.

Endeavour Group Ltd (ASX: EDV)

Endeavour is our next ASX 200 share to take a look at. This bottle shop and pubs company also had a corker. It closed at $8.11 this afternoon. But rose as high as $8.12 during intra-day trading, the company’s new all-time high.

Of course, Endeavour has only been on the ASX under its own steam for just over a year. It was formerly part of Woolworths Group Ltd (ASX: WOW) before being spun out back in June 2021.

We didn’t hear anything out of this company today either. Saying that, Endeavour has been blessed with some love from ASX experts recently. So that could have played a role in this new high today.

Orica Ltd (ASX: ORI)

ASX 200 explosives manufacturer Orica is our third ASX share lucky enough to hit a new 52-week high today.

In this company’s case, Orica shares closed at $17.20 each today after rising as high as $17.22, the new high watermark. That’s not a record high for Orica, but is still the highest the share has traded at since at least mid-2020. 

Again, there wasn’t any specific news that triggered this new high today. However, the Orica share price has been steadily climbing for months now. It is currently up a healthy 25.6% year to date in 2022  as well as up almost 9% over the past month alone.

The post 3 ASX 200 shares rocking new, multi-year highs on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 jumps higher as RBA lifts interest rates by another 0.50%
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• The Coles share price just smashed its all-time high. Here’s why
• What’s going on with the CSL share price on Tuesday?

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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 COLESGROUP DEF SET and 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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The S&P/ASX 200 Index (ASX: XJO) defied its earlier downturn to close higher after the Reserve Bank of Australia (RBA) lifted interest rates for a fourth consecutive month. The index was 0.07% higher at 6,998.10 points at Tuesday’s close.

The RBA hiked rates by a further 50 basis points today, bringing Australia’s official cash rate to 1.85% in another bid to dampen inflation, which reached 6.1% over the year to 30 June.

The benchmark index lifted out of its earlier slump immediately after the RBA released the outcome of its August meeting. It was driven higher by S&P/ASX 200 Consumer Discretionary (ASX: XDJ) shares and S&P/ASX 200 Consumer Staples (ASX: XCJ) shares. The sectors gained 1.5% and 1.2% respectively today.

Meanwhile, the S&P/ASX 200 Real Estate Index (ASX: XRE) suffered a 1.6% slump and the S&P/ASX 200 Materials Index (ASX: XMJ) fell 1.1%.

All in all, eight of the ASX 200’s 11 sectors ended today’s trade in the green. But which ASX shares outperformed all others on Tuesday? Keep reading to find out.

Top 10 ASX 200 shares countdown

After a brief hiatus from the top spot, Zip Co Ltd (ASX: ZIP) has retaken the crown. The buy now, pay later (BPNL) stock lifted 15% on Tuesday to close at $1.22. Find out what Zip has been up to here.

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

ASX-listed company	Share price	Price change
Zip Co Ltd (ASX: ZIP)	$1.22	15.09%
A2 Milk Company Ltd (ASX: A2M)	$4.90	7.93%
St Barbara Ltd (ASX: SBM)	$1.22	5.17%
Ramelius Resources Limited (ASX: RMS)	$1.03	4.57%
De Grey Mining Limited (ASX: DEG)	$0.94	3.87%
West African Resources Ltd (ASX: WAF)	$1.37	3.79%
Telix Pharmaceuticals Ltd (ASX: TLX)	$7.34	3.38%
Breville Group Ltd (ASX: BRG)	$21.62	3.25%
JB Hi-Fi Limited (ASX: JBH)	$43.61	3.1%
Eagers Automotive Ltd (ASX: APE)	$12.69	3%

Our top 10 ASX 200 shares 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 200 shares today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares rocking new, multi-year highs on Tuesday
• This ASX 200 director bought $1.5 million worth of his company’s shares in July…and he’s still buying
• ASX 200 jumps higher as RBA lifts interest rates by another 0.50%
• Why A2 Milk, Qualitas, Telix, and Ventia shares are pushing higher today
• Here’s why the A2 Milk share price just popped then stopped

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 ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk. 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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With all the economic dramas going on in China these days, it’s reasonable to wonder whether iron ore’s multi-year bull run is over.

It’s important for us to know, given Australia’s gross domestic product (GDP) relies heavily on our resources trade, particularly sales of iron ore, and China is our biggest customer.

In fact, China buys more iron ore than any other country, accounting for 70% of global imports.

So, for better or worse, right now the global iron ore price is inextricably linked to the Chinese economy. And here’s what’s been happening lately: COVID-19 lockdowns, falling property sales, government-backed bailouts of unfinished housing projects, debt defaults, and a “sharp contraction” in the steel industry due to “collapsing domestic demand”.

That’s according to a note from Liberum Capital reported in the Australian Financial Review (AFR) today.

So, what does all this mean for the iron ore price? Is it heading into a bear market?

The rollercoaster of the iron ore price

Before we answer that, let’s review the recent history of the iron ore price.

Back in January 2016, the iron ore price hit an all-time low of US$42 per tonne. Since that time, it has climbed in a sharp jagged line to reach a peak of US$215 per tonne in June 2021.

Then it took a dive. All the way back to US$100 per tonne by November 2021. Then, we saw a recovery to US$158 per tonne by March this year. Then it fell again, back to $US100 per tonne on 21 July. (Anyone feel like we’re on a rollercoaster, here?)

Now what’s happening? Well, in overnight trading, the iron ore price went up 1.28% to US$119 per tonne.

So, it appears to be on the rebound. Or is it just a blip? Simply part of that historically sharp jagged line, whether it’s upwards or downwards?

Is iron ore going bearish?

In an article by Hans Lee on Livewire, commodities analysts from Citi basically say ‘no’ to this question.

They reckon more stimulus as a result of easing monetary policies in China could lift the iron ore price.

They also say the recent dip in the iron ore price has led to less seaborne supply from smaller producers. Plus, recent lockdowns have resulted in less domestic production, so this could lead to higher demand for imports in the second half of 2022. Hence, “the iron ore price could perform strongly through the end of the year”, according to the article.

The Citi team says the demand/supply ‘delta’, which means the rate of change, is turning positive.

According to the article:

Indeed, new home starts and completions are outpacing the rate of ongoing projects. This differential is traditionally a leading indicator for iron ore price movements — one way or the other.

Citi backs BHP and Rio Tinto

Citi notes the price drops of the three major ASX mining shares — BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) — during the recent market sell-off.

Based on current valuation and potential dividend yields, Citi recommends BHP and Rio Tinto as buys. It rates Fortescue a hold.

The analysts say more stimulus in China and a weaker Australian dollar are great news for the miners. When the dollar is weak, the cost to export iron ore goes down.

The post Is the iron ore price entering a bear market? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Credit Corp, Fortescue, and Santos shares are dropping
• Why did the BHP share price slump 6% in July when the ASX 200 leapt higher?
• Why is the Fortescue share price sliding on Tuesday?
• What brokers are saying about the Fortescue share price in August
• Guess which 2 ASX 200 shares have some of the highest dividend yields right now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals Group 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 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 Sayona Mining Ltd (ASX: SYA) share price was well into the green in July, finishing 33.33% higher over the month.

Meanwhile, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) finished flat as global commodities continued to realise a deep pullback.

Strong July for Sayona

Sayona shares gained 35% in the second last week of July on no news.

Investors rallied Sayona alongside other ASX lithium shares whilst the price of lithium carbonate remained buoyant.

In fact, while there’s been a sharp downturn in the price of most commodities since March, lithium has held form and now trades at $100,331 per tonne, in line with its 2022 average.

This was a bullish factor for the Sayona share price according to a recent analysis.

Sayona share price vs the benchmark

The mining benchmark has reversed course and pared 2022’s gains. It approached 52-week lows in July but managed to claw back some on the roll into August.

Sayona and the mining index have tracked each other closely since May. The difference is that Sayona bounced from its low earlier, and with more force, than the benchmark over June and July, as seen below.

On 29 July, Sayona released its quarterly activities and cash flow report.

The lithium miner reported “significant advances towards the recommencement of spodumene (lithium) production at the Company’s North American Lithium (NAL) operation in Québec, Canada”.

In the past 12 months, the Sayona share price has held a 125% gain.

At the market close on Tuesday, Sayona shares were 18 cents, 28.5% higher this year to date.

The post Up 33% in July, why did the Sayona share price have such a stellar month? appeared first on The Motley Fool Australia.

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More reading

• Is ASX lithium company Sayona Mining profitable?
• Why is the Sayona Mining share price up 35% this week?
• Sayona shares sail 8% ahead amid government’s call to secure energy supply
• Why is the Sayona Mining share price tumbling 6% today?
• How did the Sayona Mining share price perform in FY22?

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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After spending most of the trading day deep in red territory, the All Ordinaries Index (ASX: XAO) closed 0.05% higher on Tuesday. However, it was not such a happy ending for the Openpay Group Ltd (ASX: OPY) share price.

Openpay shares also spent much of the day in the red, finishing 3.13% lower at 31 cents a share. The ASX buy now, pay later (BNPL) share dropped as low as 28 cents a share earlier in the day. All up, it means Openpay shares have now lost a painful 40% since hitting 52 cents a share last Friday.

But rather perplexingly, the Openpay share price still remains up by close to 24% over the past five trading days. That’s even after the big falls we have seen since Friday.

This is largely thanks to the massive near-50% move we saw last Thursday. Indeed, between Monday and Thursday last week, the Openpay share price more than doubled from 24 cents to 50 cents.

The jaw-dropping share price move we saw on Thursday seemed to have been sparked by the release of Openpay’s quarterly update. This covered the three months to 30 June 2022.

As we covered at the time, the BNPL company reported a pleasing 50% increase in the number of active plans to 1.8 million for the quarter over the prior corresponding period. Active customers also rose by 21% to 321,000.

Total value transaction was also up significantly, rising by 54% to $97.6 million. Revenues also came in strong, with Openpay recording a record $8.5 million, up 80% over the prior period.

Why has the Openpay share price tanked 40% in three days?

So obviously investors were driven into a frenzy with these numbers. But it seems that many have since had a rethink. Openpay has not given any additional news or updates to investors since this report. So ‘cold feet’ is the most likely explanation for Openpay’s more recent share price woes.

Despite the massive share price movements we saw last week, Openpay shares remain down by almost 60% in 2022 thus far. At its current share price, this ASX BNPL share has a market capitalisation of just over $48 million.

The post The Openpay share price has cratered 40% in 3 days. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX All Ordinaries share has rocketed 40% in 2 days?
• These 3 ASX All Ordinaries shares hit new 52-week highs on Monday
• Why is the Bubs share price smashing the All Ordinaries today?
• Openpay share price explodes 33% on ‘record-breaking quarter’
• Why is the Openpay share price up 55% in a week?

Motley Fool contributor Sebastian Bowen 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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While the S&P/ASX 200 Index (ASX: XJO) is heading south today, this isn’t the case for the Eagers Automotive Ltd (ASX: APE) share price.

This comes after the company announced another sizeable share purchase from one of its directors.

During mid-afternoon trade, the automotive retailer’s shares are swapping hands at $12.58, up 2.11%.

For context, the benchmark ASX 200 index is trading at 6,963.4 points, down 0.42%.

Eagers Automotive insider buying action continues

Despite the Eagers Automotive share price surging 26% in a month, the company’s non-executive director, Nick Politis is continuing to increase his holdings.

According to its release, Eagers Automotive advised that Politis has bought another 10,000 shares at a price of $12.41 apiece. This was conducted through via an on-market trade through his subsidiaries, W F M Motors and NGP Investments.

While the latest transaction equates to the value of around $124,000, Politis spent more than $1.5 million last month.

This means that Politis now has over 70.36 million Eagers Automotive shares and is its largest shareholder by some margin.

Last month, the company received the green light to acquire the rich lister’s privately-owned dealerships in the Australian Capital Territory.

The $193 million deal is expected to generate $450 million in annual revenue for Eagers Automotive.

It is worth nothing that since hitting a 52-week low of $8.65 on 17 June, shares in the company have risen by 45%.

Eagers Automotive share price recap

Although the Eagers Automotive share price has been in fine form lately, it’s down 21% over the last 12 months.

Year to date has fared slightly better, a 6% loss for the period.

Based on today’s price, Eagers Automotive presides a market capitalisation of approximately $3.17 billion.

The post This ASX 200 director bought $1.5 million worth of his company’s shares in July…and he’s still buying appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 share this billionaire has been topping up on
• Here are the top 10 ASX shares today
• Eagers Automotive share price lifts on ‘improved outlook’
• Why Eagers Automotive, Viva Energy, Woolworths, and Zip shares are rising
• ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack

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.

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The Novonix Ltd (ASX: NVX) share price is dragging on the tech sector on Tuesday despite the company’s silence.

At the time of writing, the Novonix share price is $2.455, 4.47% lower than its previous close.

That makes it the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s worst performer. The sector is currently recording a 0.72% gain while the S&P/ASX 200 Index (ASX: XJO) is lifting 0.09%.

So, what might be weighing on the ASX 200 battery technology and materials stock today? Let’s take a look.

What’s weighing on the Novonix share price?

The Novonix share price is defying its sector’s gains on Tuesday to tumble lower.

Interestingly, there’s been no word from the company to explain investors’ apparent shifting sentiment. Though, it’s worth noting today marks the second consecutive day in which the stock has plummeted.

Shares in Novonix fell 9% yesterday after posting an 11% gain over the course of last week. Thus, its latest slip may represent extended profit taking.

It’s also worth noting the company was mentioned in Phillips 66’s latest quarterly report, released after the market closed on Friday. The New York-listed company snapped up a 16% stake in Novonix in August 2021.

Sadly, that holding’s value fell by US$240 million over the three months ended June 2022 and US$398 million over the first six months of this year.

But Novonix isn’t alone in the red today. Many of its fellow battery-focused stocks are also suffering.

Lithium and boron producer Allkem Ltd (ASX: AKE) is the worst performing S&P/ASX 200 Materials Index (ASX: XMJ) share right now, recording a 4.75% tumble.

Meanwhile, lithium shares Core Lithium Ltd (ASX: CXO) and Lake Resources N.L. (ASX: LKE) are down 3.4% and 3% respectively.

The Novonix share price is now 77% lower than it was at the start of 2022. It has also fallen 14% since this time last year.

The post Why is the Novonix share price sliding on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Novonix share price just soar 13%?
• Why Block, Iluka, Nitro, and Novonix shares are dropping today
• Powering down: Novonix share price slumps following quarterly results
• After gaining 27% last week, the Novonix share price is struggling this week. What gives?

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 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 Santos Ltd (ASX: STO) share price is in the red today on the back of falling oil prices.

The company’s share price is down 1.83% and is currently trading at $7.245. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.92%.

So what’s going on with the Santos share price?

Oil prices slide

Santos shares may be falling today, but it is not the only oil and gas producer struggling. The Woodside Energy Group Ltd (ASX: WDS) share price is 0.64% lower while Beach Energy Ltd (ASX: BPT) is down 1.1%.

Brent crude oil is down 0.78% to US$99.25 a barrel, while the price of West Texas Intermediate oil is falling 0.71% to US$93.22, Bloomberg data shows.

Oil prices are dropping amid a weaker demand outlook and recession fears, Reuters reported. OANDA senior market analyst Edward Moya said (cited by Reuters):

Crude prices tumbled after a wealth of factory activity data suggested the world is headed towards a giant global economic contraction, and on expectations for more oil output following a very good earnings season for oil companies

Natural gas prices are also down 1.61% to US$8.15 MMBtu, according to Bloomberg.

Meanwhile, Morgans has named Santos as one of three shares to buy in August, my Foolish colleague James reported yesterday. This is due to its “diversified earnings base” and the resilience of its growth profile, the broker says.

Analysts have placed a $9.30 price target on the company’s share price. This is 28% more than its price at the time of writing.

In financial results released in late July, Santos reported record first-half sales revenue of US$3.8 billion.

Share price snapshot

The Santos share price has jumped almost 12% in a year and gained around 15% year to date.

For perspective, the ASX 200 energy index has soared 30% in a year and 31% year to date.

Santos has a market capitalisation of about $24 billion based on the current share price.

The post Why is the Santos share price lagging the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Credit Corp, Fortescue, and Santos shares are dropping
• 5 things to watch on the ASX 200 on Tuesday
• ‘Alarming’: ASX 200 energy shares lift despite increasing government pressure over supply outlook
• Morgans name 3 of the best ASX shares to buy in August
• 5 things to watch on the ASX 200 on Monday

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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