ASX 200 sinks on Thursday after mixed performance across major Wall Street indexes
The ASX 200 is down in the early moments of trading on Thursday following a mixed performance in the US.
The index sank about 0.2 per cent after the first 25 minutes of trading with accounting software company Xero down 7.2 per cent amid investor backlash to its $4b bet on American accounting and invoicing platform Melio Payments.
Credit Corp Group is down about three per cent while family safety app-owner Life360 and data centre owner DigiCo Infrastructure have both lost about 2.5 per cent.
Wall Street was a mixed bag on Wednesday despite the major indexes climbing back to their February highs after the calamity of Donald Trump's "Liberation Day" tariffs.
"It almost feels like back to your regularly scheduled bull market," Ryan Detrick, chief market strategist at Carson Group in Omaha said.
"We've dealt with the tariffs, we've dealt with the Middle East drama, but stocks continue to defy the odds by moving higher with the realization that the U.S. economy remains quite resilient."
Shares in chip-maker Nvidia jumped to a new record high, boosting its market cap to US$3.77 trillion, bumping Apple to reclaim the title of world's most valuable company, after rallying more than 60 per cent since April.
The Dow Jones sank 0.3 per cent, the S&P 500 finished flat and the Nasdaq added 0.3 per cent.
London's FTSE 250 Index shed 0.1 per cent on Wednesday, Germany's DAX fell 0.6 per cent and the STOXX Europe 600 sank 0.7 per cent.
New Zealand's NZX has shed 0.3 per cent while Japan's Nikkei 225 is up 0.6 per cent since trading began on Thursday.
-With Reuters
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Sky News AU
40 minutes ago
- Sky News AU
Labor faces critical 'negotiations' with the Trump Administration to avoid section 899 'revenge tax', WAM Global's lead portfolio manager Catriona Burns declares
Donald Trump's controversial 'revenge tax' will force Australia to bargain with the United States on major points of contention as Labor looks to protect the $4.2 trillion super pool and investment. Section 899 of Trump's 'big beautiful bill' will allow the US to force taxes on nations it believes unfairly treats US firms – such as tech giants Meta and Alphabet. This comes as Australia targets big tech through its media bargaining incentive, while the nation's Pharmaceutical Benefits Scheme has also drawn the Trump Administration's ire. If the bill passes, Australians may be forced to pay upwards of 20 per cent more tax on US investments. WAM Global's lead portfolio manager Catriona Burns said the Albanese government will be forced to bargain with the US. 'We give up some of the penalties that we're potentially putting on the tech companies, for example, in exchange for walking back the penalties that would be put on Australia,' Ms Burns said on Business Now. 'There's absolutely negotiation that will still likely go on and we could come to a much more favourable resolution than what is being proposed at this point.' Treasurer Jim Chalmers on Wednesday told reporters he had discussed section 899 with US Treasury Secretary Scott Bessent and made Australia's case against the looming tax. "We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress,' the Treasurer said. This comes as Prime Minister Anthony Albanese vowed to protect beef trade, the media bargaining code and the Pharmaceutical Benefits Scheme after Trump first revealed sweeping "Liberation Day" tariffs. Despite the threats to Australia's super industry and investment returns, Ms Burns argued that investing in the US may still be more beneficial if section 899 of the bill goes through considering the greater potential for returns. 'When you look at the companies, particularly in the tech space for example, that are in America, there (are) still some wonderful businesses to invest in,' she said. 'Some of the best businesses in the world are in the US, so even with this potentially capping the returns that you can generate out of investing in the US, it still may well be the best place to invest. 'Importantly, it may incentivise the companies that you invest in in the US to actually give more back to investors in the form of buybacks rather than dividends.' Many in Australia's $4.2 trillion superannuation system have expressed concerns about diminished returns if the legislation passes as hundreds of billions of dollars of members' funds is invested in the US. AMP's chief economist Shane Oliver earlier this month said section 899 of the bill, alongside other economic policies by the Trump Administration, 'called into question 'US exceptionalism' and its 'safe haven' status'. The Future Fund chair Greg Combet also expressed concerns about the bill where he argued the US was hurting itself by thwarting investment through section 899. 'Section 899 of the Bill will potentially and dramatically escalate tax rates for Australian institutional investors like the Future Fund,' Mr Combet said in a speech to the Committee for Economic Development of Australia earlier this month. 'In combination these policies and dynamics are making the US a more risky and uncertain investment destination.'
News.com.au
an hour ago
- News.com.au
Tech, property stocks drop as ASX closes lower on mixed day of trading, investors weigh up oil prices
Australia's sharemarket edged lower during Thursday's trading, with gains in the healthcare and materials sector offset by falls in technology and property stocks. The benchmark ASX 200 dropped just 8.40 points or 0.10 per cent to close Thursday's trading at 8,550.80. The broader All Ordinaries also slipped down 6.30 points or 0.07 per cent to finish at 8,773.60. Australia's dollar is now buying around 65.30 US cents. On a quiet session for the ASX, seven of the 11 sectors finished lower with gains in healthcare, materials and energy offset by falls in technology, property and industrials. These gains were offset by larger falls in the technology and property shares, down 2.05 and 0.71 per cent respectively. Market heavyweight CSL gained 0.64 per cent to $239.98, while Pro Medicus was up 0.25 per cent to $277.73 and ResMed finished in the green gaining 1.19 per cent to $39.97. The major iron ore miners had mixed results despite the price of the underlying commodity rising. Fortescue metals gained 0.34 per cent to $14.93, while BHP traded basically flat, up just 0.03 per cent to $36.12 and Rio Tinto retreated slightly down 0.11 per cent to $104.19. IG market analyst Tony Sycamore said it was a mixed day for the ASX 200. 'The ASX200 has seen a return to narrow daily ranges and low volumes, characteristic of last week's trading patterns, with just a 26-point range today after yesterday's narrow 30-point range,' he said. 'The quiet session for the ASX200 followed a dull session on Wall Street, as Middle East tensions faded further into the background.' Oil prices rose again after US President Donald Trump said the US has not given up on its 'maximum pressure on Iran' including restrictions on sales of Iranian oil. The price of Brent crude futures rose by 0.35 per cent to $US67.99 on the back of Mr Trump's comments. Shares in Santos rose 0.79 per cent to $7.63, while Woodside slid 0.62 per cent to $23.85 despite the price of oil rising. In company news ANZ was one of the stronger performing shares on the ASX 200 despite the big four bank announcing the retirement of group executive technology group services Gerard Florian will retire. Xero led tech stocks down after the accounting software provider announced a $3.9bn cash and shares plan to buy the US based software company Melio. Shares slumped 5.26 per cent to $184.00 on the back of this announcement. Meanwhile, the saga between Betr and MIXI for control of PointsBet continues, with Betr slamming PointsBet for an 'unprofessional and irresponsible' behaviour after saying a takeover bid from MIXI had passed as a result of Betr revoking its votes. Shares in PointsBet fell 1.26 per cent to $1.18 while Betr shares were up 1.82 per cent to $0.28. Defence contractor DroneShield continued its march higher, after it rose another 11.7 per cent to $2.39 on Thursday. This follows gains of almost 20 per cent in the previous session after the defence technology company announced a $61.6 million European military deal for its handheld detection and counter-drone systems.
News.com.au
2 hours ago
- News.com.au
Closing Bell: Xero losses undercut tech sector as ASX dips
ASX falls 8.4 points, which was about 0.1% Xero sheds 4.7% on $3.9b acquisition of Melio Payments Info tech sector slumps 2% ASX edges lower on Xero acquisition The ASX 200 has fallen 8.4 points or 0.1% in trade today, after major information technology stock Xero (ASX:XRO) fell 4.7%. The damage came after XRO made a $3.9 billion offer for US-based invoicing and accounting platform Melio Payments in a bid to enter the North American market. The big draw points for the acquisition are integrated payments, expanded revenue streams and accelerated US growth, allowing Xero to expand into payment flows as well as accounting services. Analysts reckon the price is pretty steep at 13.4-times Melio's annual revenue of US$187 million, especially since the company printed a cash flow loss of $US154 million in the previous quarter. That said, they also think there are some synergies at play here, and a real opportunity for Xero to break into the American market. In the meantime, it's cut the legs out from under the Aussie market as the info tech sector slides 2%. The only solid gains today were in health care, with several biotech stocks making moves. Clarity Pharmaceuticals (ASX:CU6) jumped 14%, Botanix Pharmaceuticals (ASX:BOT) 8.6%, and Cogstate (ASX:CGS) and Orthocell (ASX:OCC) added 8.2% each. As for our indices, the ASX All Tech was predictably down 0.96%, with the All Ord Gold not far behind, shedding 0.84%. The Small Ords made an effort, adding 0.46% but the ASX 200 Resources and ASX Banks indices were the only others in the green, adding just 0.08% and 0.05% respectively. ACCC slams Australian Gas Network's renewable gas claims With oil prices stabilising at around US$67.88 a barrel of Brent today, the energy sector is almost dead flat. A Federal Court action from the ACCC against gas distributor Australian Gas Networks certainly isn't helping matters. The ACCC alleges AGN made misleading claims in its 'Love Gas' TV and digital advertising campaign, where the company claimed it would be distributing renewable gas to households within a generation. 'It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so when, this would be possible,' ACCC chair Gina Cass-Gottlieb said. 'We allege that even though Australian Gas Networks knew the future of renewable gas was uncertain, it made an unqualified representation to consumers that it would distribute renewable gas to households within a generation.' The ACCC is seeking declarations, penalties, costs and other orders. Parent company Australian Gas Infrastructure Group vowed to defend its subsidiary's claims. 'We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future,' AGIG's statement read. 'For this reason, we are disappointed with the ACCC's decision to take proceedings and will be defending these claims. AGIG will not be making any further comment at this stage." ASX SMALL CAP LEADERS Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap VML Vital Metals Limited 0.003 200% 10668158 $5,895,067 PFM Platformo Ltd 0.085 81% 5000 $4,460,690 LKY Locksleyresources 0.088 52% 22958926 $10,633,333 ALR Altairminerals 0.003 50% 264438 $8,593,488 EEL Enrg Elements Ltd 0.0015 50% 354475 $3,253,779 RCM Rapid Critical 0.003 50% 22383999 $2,831,556 TEG Triangle Energy Ltd 0.003 50% 2942226 $4,178,468 OPL Opyl Limited 0.028 47% 14061855 $4,464,398 SPQ Superior Resources 0.005 43% 5075539 $8,298,440 PV1 Provaris Energy Ltd 0.017 42% 4201927 $8,376,015 LOC Locatetechnologies 0.245 40% 6432545 $40,307,564 SLZ Sultan Resources Ltd 0.007 40% 5173612 $1,157,350 AMS Atomos 0.004 33% 4718113 $3,645,055 BP8 Bph Global Ltd 0.002 33% 105539 $1,576,477 CZN Corazon Ltd 0.002 33% 667996 $1,776,858 VN8 Vonex Limited. 0.024 33% 360256 $13,546,863 WWG Wisewaygroupltd 0.185 32% 140498 $23,429,447 EVR Ev Resources Ltd 0.009 29% 6333485 $13,900,857 DY6 Dy6Metalsltd 0.11 28% 362157 $5,708,107 OLH Oldfields Holdings 0.025 25% 60000 $4,261,183 JAV Javelin Minerals Ltd 0.0025 25% 4377333 $12,252,298 KPO Kalina Power Limited 0.005 25% 2945589 $11,731,983 SHP South Harz Potash 0.0025 25% 3977937 $2,205,457 VRX VRX Silica Ltd 0.086 23% 4347080 $52,311,230 BTE Botalaenergyltd 0.06 22% 58960 $12,797,475 Making news… Vital Metals (ASX:VML) is about to initiate a share consolidation on a 50 to 1 basis after shareholders voted in favour at today's general meeting. That'll reduce the company's issued shares from 5 billion to just under 118 million, in turn bumping its share price up 50-fold. As the company hit 2 cents a share in trade today, that will translate to a $1.00 price tag for VML shares post consolidation. Rapid Critical Metals (ASX:RCM) has its eyes set on the Conrad and Webbs silver projects in New South Wales after securing firm commitments to raise $10.5m in a share placement at $0.024 a share. There's been no modern exploration on either project for a decade, offering an opportunity to expand and upgrade existing resource estimates. RCM will begin with the Webbs project, employing targeted geophysics, drilling and metallurgical studies. Opyl (ASX:OPL) has snapped up two Bitcoin for about $330k as part of a treasury diversification process led by executive Tony G. Tony is chair of SOL Strategies, a CSE-listed Solana-based crypto company with a market cap of CAD$375M. OPL reckons the asset class is gaining momentum and offers high levels of liquidity, as well as opening up opportunities to plug into blockchain-based AI infrastructure. Locksley Resources (ASX:LKY) has officially listed to the OTCBQ under the ticker LKYRF, gaining broader access to North American investors and a deeper capital pool for its flagship Mojave rare earths project VRX Silica (ASX:VRX) has received the green light from the WA Minister for Environment for its environmental protection proposal at the Arrowsmith North silica sand project. Originally knocked back by an appeal from the Conservation Council of WA, the Minister has accepted recommendations to amend conditions addressing vegetation dieback, which VRX is happy to address. ASX SMALL CAP LAGGARDS Today's worst performing small cap stocks: Security Name Last % Change Volume Market Cap AOA Ausmon Resorces 0.001 -50% 515819 $2,622,427 C7A Clara Resources 0.0025 -38% 5508687 $2,353,084 HCD Hydrocarbon Dynamics 0.002 -33% 33333 $3,234,328 PIL Peppermint Inv Ltd 0.002 -33% 137297 $6,903,269 QXR Qx Resources Limited 0.002 -33% 1148011 $3,930,987 WEL Winchester Energy 0.001 -33% 4062051 $2,044,528 TML Timah Resources Ltd 0.024 -31% 10000 $3,106,592 ASP Aspermont Limited 0.005 -29% 1191980 $17,312,314 LU7 Lithium Universe Ltd 0.005 -29% 13733062 $5,501,857 FHS Freehill Mining Ltd. 0.003 -25% 4970168 $13,655,414 HLX Helix Resources 0.0015 -25% 350000 $6,728,387 MGU Magnum Mining & Exp 0.003 -25% 2731100 $4,486,603 MTB Mount Burgess Mining 0.003 -25% 4843886 $1,406,811 RDS Redstone Resources 0.003 -25% 1100000 $4,137,069 BLU Blue Energy Limited 0.005 -23% 2147376 $12,031,328 SPX Spenda Limited 0.0055 -21% 1872752 $32,306,508 ERL Empire Resources 0.004 -20% 100000 $7,419,566 PKO Peako Limited 0.002 -20% 233022 $3,719,355 RDN Raiden Resources Ltd 0.004 -20% 12447509 $17,254,457 TFL Tasfoods Ltd 0.004 -20% 2242057 $2,185,478 TGH Terragen 0.018 -18% 1770327 $11,110,378 NSB Neuroscientific 0.074 -18% 729709 $13,014,438 ALY Alchemy Resource Ltd 0.005 -17% 45000 $7,068,458 BLZ Blaze Minerals Ltd 0.0025 -17% 416000 $4,842,000 DAF Discovery Alaska Ltd 0.01 -17% 48333 $2,810,816 IN CASE YOU MISSED IT Neurizon Therapeutics (ASX:NUZ) has developed a liquid version of its ALS treatment drug with the goal of improving the patient experience as the disease progresses. X2M Connect (ASX:X2M) has scored $1m of water monitoring contracts in South Korea, bringing total contract value in the country to $5.5m. Brightstar Resources (ASX:BTR) reckons it can grow the maiden ore reserve for its Second Fortune and Fish underground mines with more surface and underground drilling, which is due to start imminently. Everest Metals Corporation (ASX:EMC) have confirmed an extensive regional gold trend that highlights the considerable scale of the Revere gold project. Hillgrove Resources (ASX:HGO) has revealed more copper beyond the confines of its Kanmantoo mine resource base, thanks to deep diamond drilling. HyTerra (ASX:HYT) has expanded drilling plans at the Nemaha project, increasing the number of white hydrogen wells from two to three. TRADING HALTS Astron Corporation (ASX:ATR) – work plan application update Percheron Therapeutics (ASX:PER) – pending licensing deal PointsBet Holdings (ASX:PBH) – outcome of scheme meeting hummgroup (ASX:HUM) – potential acquisition offer Xero Limited (ASX:XRO) – corporate transaction and equity raise At Stockhead, we tell it like it is. While Locksley Resources is a Stockhead advertiser, it did not sponsor this article.
