Sharemarket dips as buyers take breather; gold miners rise, ASX Ltd sinks
Iron ore mining heavyweights lost ground on Thursday as prices slid lower. BHP fell 0.1 per cent, Rio Tinto gave up 0.5 per cent and Fortescue lost 0.4 per cent.
The big four banks were mixed, with Commonwealth Bank down 0.5 per cent and NAB down 0.4 per cent, while Westpac added 0.2 per cent and ANZ Bank added 0.3 per cent. AMP shares reversed early losses to close 4.8 per cent higher after it reported a 4.9 per cent fall in first-half statutory profit, to $98 million, after its bottom line was affected by costs relating to 'business simplification', litigation and remediation. On an underlying basis, profits rose 9.2 per cent to $131 million.
The lifters
Consumer discretionary stocks outperformed the broader market, gaining 1 per cent with strong performances from Wesfarmers (up 0.7 per cent), JB Hi-Fi (up 1.8 per cent) and Aristocrat Leisure (up 1.5 per cent).
Loading
Gold miners extended their winning run, as gold futures continue to edge higher to trade at $US3445 ($5292) an ounce, less than two per cent from all-time highs. Newmont was up 1 per cent, Evolution Mining rose 0.4 per cent and Northern Star closed 1.5 per cent higher. Westgold Resources was the day's top performer, up 5.1 per cent.
The energy sector was stronger after a slow start, with Yancoal up 0.9 per cent, Woodside 0.4 per cent higher, and Ampol gaining 0.9 per cent. Santos, however, shed 1 per cent. Australian IT stocks also showed strength, gaining 0.4 per cent after a strong lead from the US tech sector overnight.
The lowdown
Australia's sharemarket edged lower a day after breaking all-time highs, but all's not lost as the bourse posted its second-highest close in history.
'Australian shares were muted on Thursday, slipping from a record high hit in the previous session as losses in financials weighed (-0.3 per cent), while investors remained cautious awaiting monetary policy decisions from central banks in Australia and the US in the near term,' CommSec chief economist Ryan Felsman said.
The ASX hit new all-time highs on Wednesday on expectations of cheaper borrowing costs and commodity price strength supporting the materials sector.
'The steadiness in precious metals suggests investors remain risk-averse, while the calm overall tone points to traders avoiding extremes despite ongoing macro uncertainty,' Moomoo market strategist Paco Chow said.
'If investor bullishness over corporate earnings and rates cuts continues, we could see Australia become the ultimate 'value play' in the coming weeks.'
Interest rate sensitive stocks such as real estate and consumer discretionary lifted amid expectations of a Reserve Bank interest rate cut next week. Markets have priced in a 25- basis-point cut to the cash interest rate.
As gold's gains gave Australian miners a boost, traders weighed uncertainty created by US President Donald Trump's latest trade moves, including threatening a 100 per cent tariff on chip imports.
Trump's new tariff rates on US imports from dozens of countries took effect on Thursday, the latest chapter in the saga of Trump's reshaping of global trade. But many questions remain.
Loading
Traders also watched for the expected nomination of a temporary Federal Reserve governor who will likely be more aligned with Trump's agenda to ease monetary policy. Lower rates benefit gold, which doesn't yield interest.
The precious metal's recent rally has been driven by rising market expectations for rate cuts. Central bank buying and a broad trend of diversifying away from US dollar-denominated assets have also offered support.
Overnight, the S&P 500 rose 0.7 per cent, the Dow Jones added 81 points, or 0.2 per cent, and the Nasdaq composite climbed 1.2 per cent as US stocks reclaimed more of their sharp losses from last week.
Apple alone accounted for more than a third of the S&P 500's gain. It rose 5.1 per cent ahead of a White House event where it was announced the tech giant would increase its US investments by an additional $US100 billion ($153 billion) over the next four years.
Trading elsewhere on Wall Street was mixed following a jumble of profit reports. McDonald's and Shopify rose following their latest updates, while Super Micro Computer tumbled after its earnings and revenue came in below analysts' expectations. The Walt Disney Co. fell after its earnings beat forecasts but its revenue fell short.
Worries are still high that Trump's tariffs may be hurting the US economy, but hopes for coming cuts to interest rates by the Fed and a parade of stronger-than-expected profit reports from US companies have helped steady the market.
Companies are under pressure to deliver bigger profits to justify the big gains their stock prices have made since the US market hit a low point in April. The S&P 500 is only a bit below its record, which was set late last month, and the big rally fuelled criticism that the broad market has become too expensive.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
28 minutes ago
- West Australian
ADX clinches Sicily gas permit in European energy hotspot
ASX-listed ADX Energy has finally put its foot on one of Europe's most tantalising offshore gas plays after formally receiving 100 per cent of a high-impact exploration permit covering 346 square kilometres off the western tip of Sicily in Italy. Fresh from a big in-country oil and gas exploration policy change, Italy's Environment and Energy Security Ministry has given ADX the green light for gas-only exploration after putting the company's finances, technical skills and organisational muscle through a thorough health check. ADX says the potential prize waiting for it on the back of a successful exploration program is a juicy 369 billion cubic feet (Bcf) of gas from five prime prospects. Historic 2D seismic has hinted at stacked reservoirs with top-notch, 30 per cent porosity at some of the targets and points to the potential of a juicy low-risk, high reward exploration play of cheap drilling coupled with the chance of outsized returns. The lease sits in shallow waters less than 100 metres deep, just 30 kilometres off Sicily's shoreline and comes with potential access to the Transmed pipeline, which runs directly past the permit from North Africa to its point of entry at Mazara del Vallo in western Sicily. The company's new grounds cover a patch of the Sicily Channel that has been largely overlooked for gas despite historic oil exploration and drilling. The geology is almost a carbon copy of nearby producing fields, such as Italian energy heavyweight ENI's Argo-Cassiopea offshore and Lippone-Mazara onshore discoveries, where similar stacked gas sands have delivered hefty resources from compact structural traps. If ADX's prospects end up mirroring those at Argo-Cassiopea - which holds almost 360Bcf of stacked gas across two fields in the same Miocene-Pliocene sands - the company says each of its wells could potentially pump out 20–30 million cubic feet of gas a day and notch up about 50Bcf each. Adding to the buzz, past exploration work has already lit the path. Old seismic and well logs, including those from the Nilde-2 well within the lease, strongly point to 99 per cent biogenic methane, a sweet gas requiring minimal processing. This gas appears trapped in Miocene sandstones between 700 and 2000 metres below surface. ADX lodged its bid for the Sicily Channel permit in January, hot on the heels of Italy's long-awaited policy shift that ended a freeze on new exploration licences. The freeze dated back to 2019, when Rome pulled the plug on all hydrocarbon exploration in a bid to cut carbon emissions. But Europe's scramble for alternatives to Russian gas after its Ukraine invasion flipped the script. With demand surging, Italy's new centre-right, pro-gas government under Prime Minister Giorgia Meloni moved quickly to revive domestic exploration, eyeing home-grown clean gas to shore up energy security. For ADX, the numbers stack up nicely. Robust European gas prices – currently around €34 (A$61) per megawatt – coupled with favourable tax terms of a 10 per cent royalty and 28 per cent corporate tax make the economics of the Sicily Channel permit hard to ignore. Moving forward, a treasure trove of old wells and 2D seismic, previously aimed at deeper oil, has given ADX a head start in sizing up its new permit. The company says it's now ready to hit the ground running by reworking seismic, picking up well logs and fast-tracking fresh 3D surveys, aiming to mature its prospects and secure an independent expert's tick to highlight the permit's full gas potential. All up, ADX's Sicily Channel prize looks like the real deal - shallow waters, stacked sands, premium pricing and a government that's suddenly rolling out the welcome mat for gas. With the groundwork already mapped and the drills not far off, the company now has a golden chance to turn an overlooked corner of the Mediterranean into a serious gas play – and the punters are likely to be watching every move. Is your ASX-listed company doing something interesting? Contact:
Sky News AU
41 minutes ago
- Sky News AU
Google hit with $55m fine after ACCC took it to court over 'anti-competitive' Android deals with Optus and Telstra
Google Asia-Pacific has agreed to pay a $55m fine after the Australian Competition and Consumer Commissions took the search engine to court for striking a 'anti-competitive' deals with the nation's two largest telcos. The search engine made a deal with Telstra and Optus to only pre-install Google Search, and not other search engines, on Android phones the telcos sold to customers between December 2019 and March 2021. In return for Google's exclusivity on these devices, Optus and Telstra would receive a share of the revenue the search giant earnt from ads on Google it showed to customers on the Android phones. Google admitted that by striking the deal with the telco giants it would likely reduce competition. The search engine's massive fine comes alongside Telstra, Optus and TPG last year agreeing not to enter exclusivity deals with Google. ACCC chair Gina Cass-Gottlieb said the deal between Google and the telcos posed a detriment to Aussie consumers. 'Conduct that restricts competition is illegal in Australia because it usually means less choice, higher costs or worse service for consumers,' Ms Cass-Gottlieb said. 'Today's outcome, along with Telstra, Optus and TPG's undertakings, have created the potential for millions of Australians to have greater search choice in the future, and for competing search providers to gain meaningful exposure to Australian consumers. 'Importantly, these changes come at a time when AI search tools are revolutionising how we search for information, creating new competition.' A Google spokesperson said the search engine was "pleased to resolve the ACCC's concerns". 'We are committed to providing Android device makers more flexibility to preload browsers and search apps while preserving the offerings and features that help them innovate, compete with Apple, and keep costs low,' the spokesperson said. Ms Cass-Gottlieb lashed out at the deal as she noted the increasing availability of AI search tools allowed consumers opportunities to 'experiment with search services on their mobiles'. Google's fine follows a long investigation by the ACCC and concerns from the consumer watchdog about the contractual arrangements for Google search, which include how ubiquitous it is as the default search engine on devices. The ACCC chair stressed that co-operation with the ACCC is encouraged as it "avoids the need for protracted and costly litigation and leads to more competition'. 'More competition in markets drives economic dynamism, but the reverse is true when markets are not sufficiently competitive,' Ms Cass-Gottlieb said. 'The ACCC remains committed to addressing anti-competitive conduct like this, as well as cartel conduct. Competition issues in the digital economy are a current priority area.' The consumer watchdog settled on this matter with Optus and Telstra in June 2024 and with TPG in August 2024.
ABC News
an hour ago
- ABC News
BlueScope warns soaring energy costs threaten Australian manufacturing as profit drops 90pc
BlueScope has sounded the alarm over Australia's energy crisis, warning that unsustainably high gas prices are pushing domestic manufacturing to a "tipping point". The steelmaker has reported a full year profit of $84 million, a 90 per cent drop from the $721 million reported a year ago. Speaking after the company's AGM, BlueScope CEO Mark Vassella said energy costs in Australia are now three to four times higher than in the US and risked undermining the country's Future Made in Australia vision. Mr Vassella said BlueScope had submitted a detailed response to the federal government's Gas Market Review including suggested immediate and long-term changes. "LNG spot cargos going offshore should come back to the domestic market, exporters not buying domestic gas and re-exporting, and then longer term we need structural reform," he said. BlueScope's neighbour Squadron Energy is planning to impart gas through its Port Kembla Energy Terminal, but Mr Vasella ridiculed the idea of Australia needing to import gas. "In what world does exporting LNG in massive quantities only to reimport to supply a shorted domestic market make any sense?" he said. Mr Vassella said Australia still needed more reliable and affordable renewable energy after the last remaining proponent of the proposed Illawarra offshore wind project abandoned it this month amid a global investor retreat. BlueScope had previously lodged a submission in support of the project. "We need more energy, we need it to be renewable, we need it to be reliable, we need it to be affordable," Mr Vassella said. "And we were supportive of the wind industry. Our products go into the wind farm industry." He acknowledged the challenges facing developers but stressed that all energy projects come with a cost, and even so should be judged on whether they represent the "least-cost option". The sharp downturn in profits was mainly due to a $439 million write-down in its US coated products business. CEO Mark Vassella described tariffs as a "moving feast" for the steel industry. Mr Vassella said a recently proposed 50 per cent tariff on Brazilian pig iron, which was later reversed, highlighted the volatility of trade policy. He said while some tariffs negatively affected Australian exports, BlueScope benefited from its multi-domestic strategy, particularly in North America, where local production shields it from price swings. "There's a lot of movement, lots of volatility and variability," he said. While energy costs dominated the national conversation, BlueScope was also eyeing opportunities closer to home, including the future of the Whyalla Steelworks. Mr Vassella expressed cautious excitement about the steelmaker's offer to step in and support the steelworks. BlueScope has assembled a consortium with global steelmakers including Nippon Steel, JSW Steel, and POSCO to bid for the facility. The consortium aims to transform Whyalla into a hub for low-emissions steel production, aligning with Australia's broader industrial strategy "This is a wicked problem, and one we are not [yet] committed to doing anything at all," he said. "We've got optionality, we've got the right partners. "There's a bunch of work to determine what future or structure steelmaking might look like in Whyalla."
