Share market winning streak at risk as banks, oil slip
Australian shares are on track to break a seven-session winning streak, after hopes of an early uptick crumbled under downward pointing US futures.
The S&P/ASX200 was down 57.9 points, or 0.7 per cent, to 8180.1 by midday, as the broader All Ordinaries lost 54.3 points, or 0.64 per cent, to 8401.9.
After-hours trading on Wall Street's S&P500 mini-futures slipped by 0.7 per cent on Monday morning, after the main index failed to break convincingly above pre-Liberation Day levels last week.
The leading US index could and could be taking a breather after better-than-expected quarterly earnings and hopes of tariff relief helped it to a nine-day winning streak, it's best run in 20 years.
"I think this week's catalysts could see markets become anxious," Moomoo market analyst Jessica Amir said.
"It all depends on the results we see from US, UK and other central banks' meetings, earnings reports from about 100 companies and tariff talks."
Locally, Labor's landslide federal election win at the weekend quelled investor fears of a minority government, with Prime Minister Anthony Albanese's party set to sweep 86 of Parliament's 150 seats.
"Now we can expect the investment world will get back to basics: focusing on fundamentals, the health of the local economy and companies that make up our share market," Ms Amir said.
Financial stocks weighed heavily on the local bourse, down 1.6 per cent as Westpac lost 2.5 per cent slip after posing a one per cent drop in half year profit.
The Commonwealth Bank was also down 2.2 per cent, rejecting from its $169.75 record on Friday to trade at $165.95.
Energy stocks were sharply lower, down 2.1 per cent, tracking with a dip in oil prices after OPEC+ flagged output hikes of up to 2.2 million barrels per day by November.
US President Donald Trump, who has urged OPEC+ to boost crude supply to cut prices at the bowser, is set to visit leader-member Saudi Arabia in May to discuss an arms deal.
Brent crude futures have lost the $US60 level to trade at $US59.13 a barrel.
The slip in fuel prices helped Qantas shares rip 2.7 per cent higher to $9.31, with last month's 18.5 per cent drop in crude prices set to filter through to jet fuel prices.
"Qantas always seems to be quick to add a fuel tax/surcharge to flight prices when the crude oil price is ripping higher," IG Markets analyst Tony Sycamore said.
"Will Qantas be looking to pass on their fuel cost savings to customers?"
Eight of eleven local sectors were trading lower by lunchtime, with industrials bucking the trend with a 0.6 per cent gain.
Materials stocks were down 0.5 per cent, with large cap miners Fortescue (-1.4 per cent), Rio Tinto (-0.8 per cent) and BHP (-0.7 per cent) all trading lower.
Most gold miners were in the red, with the exception of Gold Road Resources, which had rallied almost 10 per cent to $3.26 after the takeover target entered into a scheme implementation deed with suitor Gold Road Resources.
The Australian dollar has continued to make ground against the greenback and is buying 64.68 US cents, up from 64.11 US cents on Friday at 5pm.
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