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Perth Now
3 hours ago
- Business
- Perth Now
Aussie shares make history with record-breaking streak
Australia's key benchmark index has spiked above 8,900 points for the first time, making five record resets in five sessions for the local bourse. The S&P/ASX200 spiked to a fresh high of 9,177.3, before easing to 8,882.6 points by midday, up 8.8 points, or 0.12 per cent, as the broader All Ordinaries gained 11.9 points, or 0.13 per cent, to 9161. IG Markets analyst Tony Sycamore said it was a feat "unprecedented over the past decade". "This week's gains have followed a rally on Wall Street, the Reserve Bank's recent 25-basis-point rate cut to 3.6 per cent, and July's in-line labour force report, reinforcing the RBA's cautious 2025 rate cut strategy and teasing further cuts ahead, most likely in November and February." Friday's relatively steady start came after a flat US session overnight, after producer price growth in the world's largest economy weighed on expectations of the timing and magnitude of future interest rate cuts. "Today we expect the local market to be mostly flat, as traders await earnings calls," Moomoo market strategist Paco Chow said. "We've got a long way to go in Australian earnings season, but despite some misses, we're seeing good news." Westpac was one such example, leading the big four banks for a second-straight day after it posted a solid boost in quarterly profit on Wednesday and helping financials edge 0.1 per cent higher. CBA was on track for a third session of losses, down 7.5 per cent to $165.60 since its full-year results raised questions about its lofty valuation. Seven of 11 local sectors were trading higher, with energy ahead of the pack with a one per cent gain as Ampol surged more than seven per cent after announcing it will buy up EG Group's Australian service station portfolio for $1.1 billion. Utilities stocks showed continued strength, up more than four per cent since Thursday, as Origin Energy continued to rally after posting a bumper full-year profit. The materials sector was back in the green after snapping an eight-session winning streak on Thursday, up 0.6 per cent and tracking with similar gains in iron ore giants BHP, Fortescue and Rio Tinto. Local gold miners edged higher thanks to an uptick in the greenback against the Aussie dollar, as futures in the precious metal edged 0.5 per cent lower to $US3,383 ($A5,205) an ounce. So-called "digital gold" Bitcoin tanked almost six per cent after hitting a fresh peak above $US124,000 (A$190,830) on Thursday, and is trading just under US$118,700. Healthcare stocks slipped 0.5 per cent and were the worst performing sector, as hearing device manufacturer Cochlear slipped 1.6 per cent after its $392 million underlying net profit missed market expectations. Shares in Mirvac also fell as the property group swung to a statutory net profit of $68 million from a $805 million loss the year before. The Australian dollar is buying 64.96 US cents, down roughly one per cent since Thursday's labour force report, which showed the labour market was re-entering a period of gradual softening, Westpac economist Mantas Vanagas said.
The Star
2 days ago
- Business
- The Star
Asian shares climb on Fed cut hopes; Thai central bank in focus
Asian equities rose on Wednesday, led by gains in Indonesia and Malaysia stocks, as softer U.S. inflation data bolstered hopes of a Federal Reserve rate cut in September, lifting risk appetite among investors. Shares in Jakarta rose as much as 1.4%, to the highest level since mid-September 2024, while those in Kuala Lumpur advanced 1.5%. The equity market in Singapore added 1%, and shares in Taipei rose 0.3%. The broader MSCI gauge of Asian emerging market equities rose 0.3%. The Thai stock market reopened after a two-day public holiday, with the benchmark up 1% ahead of the Bank of Thailand's rate decision due later on Wednesday. Overnight data showed U.S. consumer prices rose modestly in July, in line with expectations, and U.S. equity benchmarks closed at record highs as President Donald Trump's sweeping tariffs have so far not affected the price of goods much. "It's clear that almost any good news leads investors to pile money into markets, particularly tech stocks, despite their lofty price tags," Paco Chow, dealing manager at trading platform Moomoo said in a note. "Investors are riding on 95% odds of a Fed rate cut in five weeks and feeling comfort that inflation is only creeping higher, not running amok." The data lifted investor appetite for risk in Asia, while the growing certainty of a Fed cut next month pushed the dollar lower. Investor confidence in the dollar was further dented after the White House said President Donald Trump was weighing legal action against Fed Chair Jerome Powell over his handling of renovations at the central bank's headquarters. Despite the dollar's decline, Asian currencies were little changed, with the Indonesian rupiah and Malaysian ringgit up 0.3% and 0.2% each, while the Taiwan dollar edged 0.1% higher and the Thai baht was flat. The Bank of Thailand (BOT) is expected to cut its key interest rate by 25 basis points to 1.5%, according to a Reuters poll, to support a slowing economy, after having kept rates steady in June. Sluggish private consumption, weak consumer confidence, high household debt, and slower foreign tourism have piled pressure on the BOT to take action. Meanwhile, stock markets in India rose 0.3% while the rupee held steady, a day after data showed inflation eased to 1.55% in July from 2.10% in June. HIGHLIGHTS: ** Malaysia's top court dismisses appeal against jailed ex-PM Najib's house arrest bid ** US Treasury's Bessent says India has been 'recalcitrant' in trade talks - Reuters
The Age
07-08-2025
- Business
- The Age
Sharemarket dips as buyers take breather; gold miners rise, ASX Ltd sinks
Healthcare stocks were heavy, losing 1.2 per cent as CSL (down 1.5 per cent), Sigma Healthcare (down 1 per cent) and Resmed (down 2.1 per cent) sold off. 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.
Perth Now
07-08-2025
- Business
- Perth Now
Australian shares ease back from record highs
Australia's share market is taking a breather after setting records but managed to hold onto most of its recent surge. The S&P/ASX200 edged 10.2 points lower, or down 0.12 per cent, to 8,833.5 in Thursday morning trade, while the broader All Ordinaries lost 7.8 points, or 0.09 per cent, to 9,103.3. The local bourse 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." Six of 11 local sectors were trading lower by midday with industrials, financials and energy stocks leading losses but none down more than 0.3 per cent. The consumer staples and discretionary sectors, along with real estate and IT stocks were at the other end of the scale, each up between 0.3 per cent and 0.4 per cent. Three of the big four banks were trading lower with CBA having sunk 0.3 per cent to $178.63, while ANZ eked a 0.4 per cent lift to $30.98. AMP overcame an early dip to lift more than one per cent after posting a nearly five per cent drop in interim net profit, as chief executive Alexis George touted strong cashflow in its wealth business and decreasing costs at an earnings briefing. Australia's materials sector eased by less than 0.2 per cent, as large cap iron ore miners BHP, Fortescue and Rio Tinto faded from recent strength, but gold miners continued to rally with Westgold Resources a top performer and up more than six per cent. Gold futures continue to edge higher to trade at $US3,445 ($A5,292) an ounce, less than two per cent from all-time highs. Energy stocks fell 0.4 per cent by lunchtime, tracking with a dip in oil prices overnight after the White House flagged progress on potential talks with Russia over an end to the Ukraine war. Exchange operator ASX Limited has sunk more than seven per cent after tagging TPG Telecom in an announcement relating to TPG Capital, a private equity firm not listed on the Australian exchange. The bungle temporarily wiped more than $400 million from the telco's market cap. Investment giant UBS has reiterated its "sell" rating on the beleaguered market operator, which is also under pressure from regulators over the long-delayed replacement of its settlement system. The Australian dollar is buying 65.11 US cents, up from 64.88 US cents at Wednesday's ASX close.
Perth Now
01-08-2025
- Business
- Perth Now
Aussie shares fall as Trump imposes sweeping tariffs
The local share market has fallen even as Australia dodged being hit by higher tariffs imposed by the Trump administration on dozens of its trading partners. Near noon on Friday, the benchmark S&P/ASX200 index had fallen 72 points, or 0.81 per cent, to 8,672.4, while the broader All Ordinaries had dropped 70.6 points, or 0.78 per cent, to 8,928.4. In Washington, the White House said tariffs on Australian exports would remain at the baseline rate of 10 per cent while imposing higher levies on more than 60 other countries including New Zealand, Fiji, Papua New Guinea and Canada. Mexico was granted a 90-day tariff reprieve. Moomoo dealing manager Paco Chow said that the imposition of higher tariffs and more economic uncertainty worldwide was reigniting investor fear, with most markets and asset classes showing declines. Traders were also awaiting the release of monthly US jobs figures known as the non-farm payroll report that will be released late on Friday, Australia time, and could influence whether the Federal Reserve cuts rates in September. "Urgent tariff fears are compounding with worries we'll see fewer-than-expected US rate cuts and some US companies showing softer earnings," Mr Chow said. The Australian dollar had fallen to a two-month low against its strengthening US counterpart, buying 64.31 US cents, from 64.73 US cents on Thursday. At midday, nine of the ASX's 11 sectors were lower, with materials and utilities higher. The technology sector was the biggest mover, dropping 1.4 per cent as Xero subtracted 1.9 per cent and WiseTech Global retreated 2.1 per cent. In health care, ResMed was up 2.9 per cent to $43.70 after the medical devicemaker posted better-than-expected fourth-quarter earnings. Also, 4D Medical had soared 29.8 per cent after medical imaging giant Pro Medicus invested $10 million into its respiratory imaging peer. In the heavyweight mining sector, Syrah Resources had plunged 23.9 per cent to 27.5 cents after completing a $42 million capital raising at 26 cents a share. The iron ore giants were all higher, however, with BHP rising 1.0 per cent and Rio Tinto and Fortescue both advancing 1.2 per cent. In the financial sector, three of the big four banks were lower. CBA and NAB had both dropped 1.6 per cent and Westpac had retreated 1.4 per cent. ANZ was the outlier, edging 0.1 per cent higher.
