ASX Market Update: Investors panic as bourse drops sharply | August 5, 2024

There has been carnage as the ASX200 dropped nearly 3% today, and the bourse is down 5% total in the worst two days in two years. Mounting fears of a US recession have sparked nervousness, and the Australian market has followed Wall Street lower.

All sectors have red lights flashing, led by IT down more than 5%, followed closely by Financials 4% and Real Estate just under 4%.

Company News

Commonwealth Bank (ASX:CBA) has been down 3.6% and is leading the big 4 lower. CBA has retreated more than 7% from its record high last week and has been swapping hands at $127.68.

Magnetic Resources (ASX:MAU) has been up around 6% this afternoon on release of an update on its Lady Julie Gold Project in Laverton WA.

The company has confirmed a viable standalone project with low cost, high margin gold production, with a payback period of 12 months from the commencement of production.

Magnetic Resources has been trading at $1.56.

Encounter Resources (ASX:ENR) is up more than 8% after striking a thick carbonatite target between two known target areas of interest.

Both known target areas – Crean and Hurley – have been recorded as boasting niobium mineralisation, the metal that made WA1 Resources a darling.

The two targets are 3km apart, indicating a potentially large area where drillers can search for niobium hits.

Encounter Resources has been trading at 58 cents.