Latest news with #VivekDhar
Perth Now
22-07-2025
- Business
- Perth Now
ASX hits near-record as miners offset banks
A slump in the big four banks offset strong gains in the mining sector as the Australian market was unable to follow strong gains out of Wall Street. The ASX 200 index gained 9 points or 0.10 per cent to 8,677.20 at the end of Tuesday's trading, for its second highest close of all time, while the broader All Ordinaries gained 15.30 points or 0.17 per cent to 8,941.50. Australia's dollar slipped 0.17 per cent and is now buying 65.14 US cents. It was a mixed day for the ASX 200. NewsWire / Jeremy Piper Credit: News Corp Australia On a mixed day of trading, six sectors finished in the green while a further five fell. Materials and Healthcare led the way up 2.37 and 2.08 per cent respectively. BHP gained 2.60 per cent to $41.51, Rio Tinto soared 3.37 per cent to $118.32 and Fortescue jumped 3.25 per cent to $17.81 on higher iron ore prices. Commonwealth Bank mining and energy commodities director Vivek Dhar said the iron ore price was back to its highest point since April 2 on the back of the latest move out of China. 'Over the weekend, the launch of the RMB 1.2 trillion hydropower project on the Yarlung Tsanpo river in Tibet also boosted demand expectations,' he wrote in an economic note. 'However, given policymakers are yet to announce any substantial property stimulus package, and China's economy has proven resilient so far this year, demand alone is unlikely to be the reason that iron ore prices have tracked back above $US100/t.' Offsetting the strong gains in the mining sector was another poor day for the big four banks. CBA slumped a further 3.06 per cent to $172.42, NAB dragged 2.69 per cent to $37.22, Westpac fell 1.27 per cent to $32.65 and ANZ slipped 0.77 per cent to $29.82. The substantial selling in the big banks this week has led to the ASX200 Financial sector falling 5.3 per cent below the record high of 9,676 reached in late June putting it on track for its lowest daily close in seven weeks. Six of the 11 sectors gained while 5 fell. NewsWire / Jeremy Piper Credit: News Corp Australia The fall on the local market comes despite shares in the US reaching another record high. The Dow Jones Industrial Average fell 18.66 points, or 0.04 per cent, to 44,323.53, while the broader S & P 500 gained 8.89 points, or 0.14 per cent, to 6,305.68 and the tech heavy Nasdaq Composite jumped 78.52 points, or 0.38 per cent, to 20,974.18. This was another record high for both the S & P 500 and Nasdaq. senior financial market analyst Kyle Rodda said Wall Street kicked off the week at a record high despite heightened trade tensions and looming tech earnings. 'Investors all but shrugged off reports that the European Union is preparing a suite of retaliatory tariffs on the United States should negotiations break down and tariffs get lifted to the levels that the US has threatened the EU with,' he wrote in an economic note. In company news, Insignia Financial has entered into a scheme implementation deed which will see CC Capital acquire all the businesses shares. Insignia shares will be sold at $4.80 per share, offering a 56.9 per cent premium on its $3.06 price on December 11 2024 when the process of taking over the business began. Bedmakers Technology group told the market it achieved record profitability and positive cash flow. In its latest statement, the company said revenue increased $22.6m and gross margins expanded by 71.5 per cent for an adjusted EBITDA of $3.2m.
West Australian
22-07-2025
- Business
- West Australian
BHP hits year-to-date share price peak as iron ore reaches $US105/t on China's big dam build and steel cuts
China's mega-dam build helped spark an iron ore price revival that has lifted shares in Australia's largest mining company to a 2025 high, but Beijing's clampdown on steel mill cannibalisation is stoking uncertainty. Iron ore futures in Singapore jumped $US1.60 per tonne on Tuesday to trade at $US105/t ($161) after leaping over the $US100/t ($153) barrier late last week. This benchmark price has now rallied 11 per cent since touching lows of $US92/t ($141) less than a month ago — defying predictions by local and international banks that the commodity's value drop would below $US90/t ($138) this year. Iron ore's recent price spike has been attributed to China starting construction on the world's biggest hydropower dam in Tibet. The dam, once complete, will reportedly generate the same amount of energy each year as the entire United Kingdom. The $255 billion infrastructure project requires significant volumes of steel and subsequently boosts demand for steel-making ingredient iron ore. Shares in Australia's major iron ore producers have recorded strong gains over the past few trading days and continued the ascent on Tuesday. Stock in BHP, Australia's biggest miner by market value, rose 2.6 per cent to $41.51 —its highest level since December. Rio Tinto finished up 3.4 per cent at $118.32 and Fortescue lifted 3.3 per cent to $17.81. But Commonwealth Bank analyst Vivek Dhar said the Tibet dam breaking ground was 'unlikely' the sole reason iron ore has rebounded beyond $US100/t. 'We continue to attribute most of the price increase to supply‑side reform in the steel sector,' he said. 'These reforms primarily aim to curb 'involution,' whereby intense competition and overcapacity has crushed margins across several industries.' Competition between China's steel mills has eaten into profit margins, jeopardising the steady supply of steel to the Asian powerhouse's key manufacturing and property sectors. This has led Beijing to intervene with orders limiting steel output across China. How this plays out for iron ore in the longer-term is difficult to predict, according to Mr Dhar. Mandated steel output cuts mean mill owners are usually willing to pay a premium for iron ore, but lower output means an iron ore oversupply could then emerge and drag the commodity's price down. Mr Dhar believes the oversupply scenario is likely. 'It is this logic that underpins our view that the recent rally in iron ore prices is unsustainable,' he said. 'It's worth noting that it is possible for supply‑side reform in China's steel sector to result in sustainably higher iron ore prices. We would need to see outdated and unused steel capacity exit the market.' Citi analyst Paul McTaggart echoed Mr Dhar's sentiment. 'Citi remains cautious on this iron ore rebound; steel production cuts in China should favour steel pricing rather than iron ore pricing,' Mr McTaggart told clients. 'However, for now the interest seems to lie with iron ore and its exposed equities.' Mr Dhar said CBA is predicting iron ore will fall to $US95/t by year's end. Australia's biggest bank had originally expected iron ore to sink to $US80/t this year.
Yahoo
01-07-2025
- Business
- Yahoo
Gold jumps as weak dollar, trade talks uncertainty drive safe-haven demand
Gold futures prices jumped more than 1.5% on Tuesday buoyed for a second consecutive day as investors look to president Donald Trump's looming deadline of 9 July to broker trade deals. Futures prices rose to near $3,360 an ounce by the afternoon. Traders are pricing in higher odds of at least two US interest rate cuts before 2026. With markets increasingly optimistic that a rate cut from the Federal Reserve could be around the corner, Thursday's jobs report takes on even more importance this week. Investors will be watching for signs of cooling in the labour market, which could bolster the case for a cut sooner rather than later. Spot prices also rose 1.6%. The yellow metal is now trading about $200 short of record highs earlier this year. Prices were supported by a weak dollar. Gold tends to have an inverse relationship to the dollar, as it is typically traded in the US currency, so weakness in the greenback makes the precious metal cheaper for overseas buyers. 'Gold, despite its recent losses, has the most potential to gain in the short term if the US dollar continues to decline,' Commonwealth Bank of Australia analyst Vivek Dhar said in a note, reported by Bloomberg. While the dollar declined, the pound headed higher once again, trading just below the $1.38 mark. For the year to date, sterling has gained almost 9.8% due to weakness in the greenback. The last time the pair reached this level was late 2021. The dollar index ( dipped around 0.5%, having suffered its worst start to the year since 1973. Volatility in president Donald Trump's trade policies has led to a pullback in confidence in US assets this year. The market is now looking to ISM manufacturing and JOLTs data, said analysts at ING in a note. "On the former, the market will be looking at the trade-off between higher prices paid and lower demand/employment. Any softer prices paid with soft demand/new orders/employment is a dollar negative. "Equally, higher prices paid and reasonable demand could be a mild dollar positive. And on the JOLTS data, any downside surprise to the 7300k consensus level could hit the dollar on the view that the resilient jobs market is starting to creak after all," they added. The pound also ticked slightly higher against the euro, following flash inflation estimates from the bloc. Sterling traded around 1.16 euro as data showed June's inflation rate was around the 2% target the European Central Bank looks to when setting interest rates. Oil prices continued to normalise on Tuesday afternoon, with futures back below levels seen before the escalation of the conflict between Iran and Israel. Brent crude futures headed 0.7% higher, hitting $67.20 a barrel, while West Texas Intermediate rose 0.7% to $65.56 a barrel. "The Middle East risk premium has completely disappeared," said David Morrison, senior market analyst at fintech and financial services provider Trade Nation. "It got knocked out of the oil price at the beginning of last week as it became apparent that Iran, Israel and the US were, despite all the airstrikes and missile launches, making efforts to avoid damage to oil and gas infrastructure." The threat of disruption to the Strait of Hormuz has also receded, with the ceasefire between Israel and Iran apparently on solid footing following a shaky start. "Market participants remain focused on geopolitical developments, particularly around tariffs," added Morrison. "However, the lack of a clear market-moving catalyst has kept oil in a holding pattern for now, with traders awaiting fresh signals to determine the next move. Many may be content to sit on their hands ahead of the OPEC+ meetings this weekend."
Mint
01-07-2025
- Business
- Mint
Gold Edges Higher on US Rate-Cut Bets and Dollar Weakness
Gold rose for a second day on optimism the Federal Reserve will resume rate cuts later this year, while investors continued to monitor US trade talks ahead of a July 9 US tariff deadline. Bullion traded near $3,310 an ounce, after rising 0.9% on Monday as traders priced in higher odds of at least two US rate reductions in 2025. A jobs report on Thursday also looms as a potential catalyst for a drop in yields on Treasuries — a scenario that typically tends to benefit gold. Gold is up by about a quarter this year and is trading less than $200 short of April's record high, supported by elevated trade and geopolitical risks. Uncertainty over the economic impact of Trump's tariff agenda and a rush to get out of US assets has seen a gauge of the dollar drop almost 11% in the first six months of year, the worst performance since 1973. 'Gold, despite its recent losses, has the most potential to gain in the short term if the US dollar continues to decline,' Commonwealth Bank of Australia analyst Vivek Dhar said in a note. Spot gold rose 0.3% to $3,311.64 an ounce as of 8:44 a.m. in Singapore. The Bloomberg Dollar Spot Index slipped 0.1%, after falling 0.5% Monday. Platinum climbed 0.6% to $1,367.10 an ounce after surging almost 29% in June, its best ever monthly performance. The rally has been driven by signs of extreme tightness in the spot market amid strong demand from Chinese jewelry manufacturers, as well as speculative buying led by the US and China. Silver and palladium also advanced.
Yahoo
01-07-2025
- Business
- Yahoo
Gold Edges Higher on US Rate-Cut Bets and Dollar Weakness
(Bloomberg) -- Gold rose for a second day on optimism the Federal Reserve will resume rate cuts later this year, while investors continued to monitor US trade talks ahead of a July 9 US tariff deadline. Struggling Downtowns Are Looking to Lure New Crowds Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer Bullion traded near $3,310 an ounce, after rising 0.9% on Monday as traders priced in higher odds of at least two US rate reductions in 2025. A jobs report on Thursday also looms as a potential catalyst for a drop in yields on Treasuries — a scenario that typically tends to benefit gold. Gold is up by about a quarter this year and is trading less than $200 short of April's record high, supported by elevated trade and geopolitical risks. Uncertainty over the economic impact of Trump's tariff agenda and a rush to get out of US assets has seen a gauge of the dollar drop almost 11% in the first six months of year, the worst performance since 1973. 'Gold, despite its recent losses, has the most potential to gain in the short term if the US dollar continues to decline,' Commonwealth Bank of Australia analyst Vivek Dhar said in a note. Spot gold rose 0.3% to $3,311.64 an ounce as of 8:44 a.m. in Singapore. The Bloomberg Dollar Spot Index slipped 0.1%, after falling 0.5% Monday. Platinum climbed 0.6% to $1,367.10 an ounce after surging almost 29% in June, its best ever monthly performance. The rally has been driven by signs of extreme tightness in the spot market amid strong demand from Chinese jewelry manufacturers, as well as speculative buying led by the US and China. Silver and palladium also advanced. America's Top Consumer-Sentiment Economist Is Worried How to Steal a House SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
