07-08-2025
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.
