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Business Recorder
a day ago
- Business
- Business Recorder
Australia shares close higher after weak growth data bolsters rate cut hopes
Australian shares rose on Wednesday, led by banks and consumer stocks, breaching the psychologically-important 8,500-point level after data showed the economy barely grew in the first quarter and raised hopes for a rate cut stimulus. The S&P/ASX 200 index rose 0.8% to 8,532.70 points at the close of trade. The index also finished the day just shy of the record closing level touched on February 14. Australia's economy grew 0.2% on lower consumer and government spending, data on Wednesday showed, missing market forecasts and reinforcing the need for further rate cuts by the Reserve Bank of Australia (RBA). This is further evidence for the RBA to cut rates in July as inflation continues to remain in the 2-3% target range, said Grady Wulff, market analyst at BellDirect, adding that other drivers continued to trend in favour of more rate easing. Swaps imply an 82% probability of a July rate cut, up from 77% before the data. The central bank made a 25-basis-point cut on May 20. Financial stocks continued to benefit as a low-rate environment translated to higher lending volumes, rising 1% on the day. Top lender Commonwealth Bank of Australia became the first ASX-listed stock to surpass a market value of A$300 billion ($193.59 billion) on Wednesday with a 0.8% gain, according to LSEG data. However, the main risk to banks would be the economy continuing to weaken, 'which could lead to an increase in defaults and delinquencies or bad debts in their loans,' said Shane Oliver, chief economist and head of investment strategy at AMP. Australian main index led higher by banks, RBA minutes boost rate cut bets Consumer discretionary stocks rose 1.2%, with electronic retailer JB Hi-Fi leading the charge, spurred by expectations of cheaper financing. Lynas, the world's biggest producer of rare-earths minerals outside China, rose 2.8% after global automakers flagged production delays citing China's stranglehold on the critical minerals. New Zealand's benchmark S&P/NZX 50 index rose 1.4% to 12,494.71 points to finish the session.
Reuters
3 days ago
- Business
- Reuters
Australia's BlueScope surges on Trump's plan to double tariffs on steel imports
June 2 (Reuters) - Shares of Australian steel producer BlueScope Steel ( opens new tab jumped on Monday to a more than three-month high after U.S. President Donald Trump said he planned to double tariffs on imported steel. Shares of BlueScope, which operates five businesses in North America including the North Star mill in Ohio, were up as much as 9.4% at A$24.88 in early trade. The stock was among the top performers in the broader ASX 200 benchmark index (.AXJO), opens new tab, which was down 0.4%. Trump on Friday said that he planned to double tariffs on imported steel and aluminium to 50%, ratcheting up pressure on global steel producers and deepening his trade war. These proposed tariffs could bode well for BlueScope in enhancing steel prices in the U.S., thus driving tailwinds for the company, said Grady Wulff, a market analyst at Bell Direct. In mid-February, the stock rose 12% after the company's chief executive Mark Vassella said that the business could benefit from Trump's protectionist tariffs. However, shares have slipped nearly 10% since Vassella's statements. Uncertainty of a rebound in demand from China for steel and steelmaking ingredients has weighed on all companies with exposure to this market, Wulff said, along with tariffs which are increasing uncertainty around the recovery of demand for steel-related materials. BlueScope has borne the brunt of weak iron ore prices, which have fallen 3.5% so far this year. North America was BlueScope's biggest revenue-generating segment in the six months to December 31, 2024, accounting for 42%, or A$309 million ($199.77 million), of all underlying earnings before interest, taxes, depreciation and amortisation. Australia made up 39%, or A$288 million. ($1 = 1.5468 Australian dollars)
Yahoo
3 days ago
- Business
- Yahoo
Australia's BlueScope surges on Trump's plan to double tariffs on steel imports
By Nikita Maria Jino (Reuters) -Shares of Australian steel producer BlueScope Steel jumped on Monday to a more than three-month high after U.S. President Donald Trump said he planned to double tariffs on imported steel. Shares of BlueScope, which operates five businesses in North America including the North Star mill in Ohio, were up as much as 9.4% at A$24.88 in early trade. The stock was among the top performers in the broader ASX 200 benchmark index, which was down 0.4%. Trump on Friday said that he planned to double tariffs on imported steel and aluminium to 50%, ratcheting up pressure on global steel producers and deepening his trade war. These proposed tariffs could bode well for BlueScope in enhancing steel prices in the U.S., thus driving tailwinds for the company, said Grady Wulff, a market analyst at Bell Direct. In mid-February, the stock rose 12% after the company's chief executive Mark Vassella said that the business could benefit from Trump's protectionist tariffs. However, shares have slipped nearly 10% since Vassella's statements. Uncertainty of a rebound in demand from China for steel and steelmaking ingredients has weighed on all companies with exposure to this market, Wulff said, along with tariffs which are increasing uncertainty around the recovery of demand for steel-related materials. BlueScope has borne the brunt of weak iron ore prices, which have fallen 3.5% so far this year. North America was BlueScope's biggest revenue-generating segment in the six months to December 31, 2024, accounting for 42%, or A$309 million ($199.77 million), of all underlying earnings before interest, taxes, depreciation and amortisation. Australia made up 39%, or A$288 million. ($1 = 1.5468 Australian dollars)
Business Recorder
22-05-2025
- Business
- Business Recorder
Australian shares end two-day winning run as investors lock in profits
Australian shares fell on Thursday, weighed down by losses in energy and banking stocks, as investors booked profits after a two-session winning streak. The S&P/ASX 200 index was down 0.5% at 8,341.4 by 0047 GMT. The benchmark had ended 0.5% higher on Wednesday. 'We are also sitting around 2% off record territory on the ASX so investors have likely pulled back to take profits today and assess the outlook on both a macro and valuations front,' said Grady Wulff, market analyst at Bell Direct. Energy stocks shed 1.2% and were among the top laggards on the benchmark, tracking global oil prices, which declined after Oman's foreign minister said that Iran and the US would resume nuclear talks later this week. Shares of top Australian oil and gas firm Woodside Energy were down 1%, while Santos dropped 1.3%. Banks fell 0.8%, dragged down by losses in Commonwealth Bank of Australia, Westpac and National Australia Bank, which fell 0.9%, 0.8%, and 0.7% respectively. Investors are likely taking profits from the financials sector after a strong run for big banks, Wulff said. Australian shares rise, boosted by financials after RBA rate cut In contrast, gold stocks, jumped nearly 2%, buoyed by higher global prices on a softer US dollar and safe-haven demand. Shares of gold miners Bellevue Gold and Evolution Mining were each up 2.8% and 2.5%. In corporate news, real asset manager Dexus dropped 2.6%. The company said it filed a case against the board of Australia Pacific Airports Corporation contesting a notice it received that alleged breach of confidentiality agreements related to its 27% stake in the Melbourne Airport. Meanwhile, Insurance Australia Group gained 1.9% after Australia's competition regulator said it would not oppose its proposed acquisition of RACQ Insurance. New Zealand's benchmark S&P/NZX 50 index fell 0.5% to 12,638.55.
Business Recorder
08-05-2025
- Business
- Business Recorder
Banks drag Australian shares lower after ANZ reports flat half-year earnings
Australian shares slipped on Thursday, dragged by banks, after lender ANZ Group reported flat first-half cash earnings and flagged margin pressures due to high interest rates and living costs. The S&P/ASX 200 index fell 0.3% to 8,157.50, as of 0040 GMT. The benchmark climbed 0.3% on Wednesday. Financial stocks fell 0.8%, weighing the most on the benchmark. ANZ Group declined as much as 2% to hit its lowest level since April 29, after the country's fourth-largest lender by mortgages reported largely flat first-half cash earnings, as competition in the home loan market and a rise in asset impairments hurt its performance. The remaining three of the 'big four' banks were down between 0.4% and 3.6%. This week traders have been closely watching earnings results for Australian banks to gauge the impacts of US President Donald Trump's tariffs on the local financial sector. Energy stocks dropped 0.3% as oil prices fell on doubts that upcoming US-China trade talks will result in a breakthrough. Gold stocks were up 1.5% tracking a rise in bullion prices. 'There is no assurance on the terms of US-China trade war negotiations yet which prompts investors to continue buying into safe-haven assets like gold in such highly volatile times,' said Grady Wulff, a market analyst at Bell Direct. Banks, miners lead Australia shares higher; NAB beats estimates Meanwhile, in a widely expected move, the US Federal Reserve held interest rates steady on Wednesday but said the risks of higher inflation and unemployment had risen. The Reserve Bank of Australia (RBA) is set to meet for its two-day monetary policy meeting on May 19. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.4% to 12,547.68. The country's central bank said the impact from US tariffs on global supply chains could affect the country's economy.
