Latest news with #IGMarkets
The Age
4 days ago
- Business
- The Age
ASX dips as gold, energy stocks soar after Iran attack
The Australian sharemarket drifted lower while gold and energy stocks soared after Israel launched airstrikes targeting Iran's nuclear sites and military leadership, raising fears over a significant escalation of hostilities in the Middle East. The ASX 200 opened higher but fell into negative territory after the strikes were reported, with Israel claiming responsibility for the incident. The index closed 17.7, or 0.2 per cent, lower at 8,547.40, with eight of 11 industry sectors in the red. Israel's attack on Iran came ahead of a sixth round of nuclear talks between US officials and Tehran over the gulf state's uranium enrichment activities, and a day after the US authorised a partial evacuation of its embassies in the Middle East. Israeli officials said its defence force had launched attacks on 'dozens of military targets', and declared a state of emergency ahead of expected retaliation from Iran. The escalation was a blow to risk sentiment and came at a crucial time after macro and systematic funds had rebuilt long positions and investor sentiment had rebounded, IG Markets analyst Tony Sycamore said. 'While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend,' he said. Israel's strike on Iran has also injected a fresh bout of geopolitical risk into an oil market that has been in the doldrums due to concerns about the global economy and supply increases from OPEC+. Brent crude jumped more than 13 per cent following the attacks, and energy stocks on the ASX surged, with Woodside jumping by 7.4 per cent while Santos climbed 3.7 per cent. Fears of an oil glut later this year are now being replaced by calls for higher prices, at least in the short term. Much will depend on Iran's response and whether key energy assets in the Middle East or tanker traffic through the region are affected.
The Advertiser
4 days ago
- Business
- The Advertiser
New Middle East conflict sends jitters through market
Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents
Perth Now
4 days ago
- Business
- Perth Now
Shares drop, oil and gold surge as Israel attacks Iran
Australia's share market has given up early gains after Israel's military launched air strikes against Iran, hammering risk sentiment. The S&P/ASX200 is down 12.5 points, or 0.15 per cent, to 8552.6, as the broader All Ordinaries fell 21.3 points, or 0.24 per cent, to 8,774.7. Israel's attack on Iran came ahead of a sixth round of nuclear talks between US officials and Tehran over the gulf state's uranium enrichment activities, and a day after the US authorised a partial evacuation of its embassies in the Middle East. Israeli officials said its defence force had launched attacks on "dozens of military targets", and declared a state of emergency ahead of expected retaliation from Iran. The escalation was a blow to risk sentiment and came at a crucial time after macro and systematic funds had rebuilt long positions and investor sentiment had rebounded, IG Markets analyst Tony Sycamore said. "While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend," he said. Seven of 11 local sectors were trading lower after the attack, but a resulting surge in oil prices pushed energy stocks 3.9 per cent higher and utilities stocks jumped 3.8 per cent. Brent crude futures rocketed more than seven per cent to 10-week highs to trade at $US73.76 a barrel by midday, injecting more than five per cent into the market capitalisations of Woodside and Santos. Woodside was the best performer of the top-200, up 5.7 per cent to $24.80. The safe haven of gold spiked more than one per cent to a new all-time high, with futures trading around $US3,450 ($A5,320) an ounce. The precious metal was already on the way up ahead of the air strikes, after softer-than-expected US inflation numbers narrowed bets on future interest rate cuts by the US Federal Reserve. Australia's gold miners were among the top-200's best performers, with Ora Banda, Emerald Resources and Newmont Corporation all up roughly six per cent. The rally in gold stocks limited losses to the materials sector, which fell 0.4 per cent as large cap miners BHP, Fortescue and Rio Tinto traded lower. Financials weighed on the bourse, sliding 0.4 per cent, tracking with the performance the four big banks, as CBA fell 0.3 per cent to $180.31. Australia's tech sector fell 1.3 per cent, as investors backed away from high-growth in favour of more defensive assets. Utilities stocks rallied after Israel's attacks, up 3.9 per cent, as Origin surged more than five per cent to $10.48 and AGL gained 3.5 per cent The Australian dollar has slipped almost one per cent to 10-day lows to buy 64.86US cents, down from 64.96 US cents on Thursday at 5pm.
Perth Now
5 days ago
- Business
- Perth Now
Australian shares edge higher as energy stocks rally
The Australian share market has shrugged off a weak Wall Street session to push higher, as escalating tensions in the Middle East light a match under energy stocks. By midday, the S&P/ASX200 gained 24.4 points, or 0.28 per cent, to 8,617.3 as the broader All Ordinaries rose 24.4 points, or 0.28 per cent, to 8,844.1. The tentative start came after the top-200 hit a fresh intraday peak of 8,639 on Wednesday. However, Iranian threats against US bases in the Middle East and disappointment over a US-China trade agreement "framework" weighed on sentiment. "US stock markets finished lower overnight following a sharp escalation in Middle Eastern geopolitical tensions and the realisation that yesterday's much-hyped US-China trade deal merely maintains the status quo of elevated tariffs agreed in Geneva and offered little new," IG Markets analyst Tony Sycamore said. Under the agreement, the US will impose a 55 per cent tariff on imports from China, while China will grant US export licenses for rare earths and magnets and gain eased restrictions on international students. While investors' reactions to the development have been subdued, US President Donald Trump has hailed them a success. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!" Trump wrote on Truth Social. Eight of 11 local sectors were in the green by lunchtime, with energy stocks surging 1.8 per cent higher after the tensions with Iran sent oil prices to two-month highs. Brent crude futures are up more than four per cent since Wednesday, trading at $US68.90 a barrel. Australia's financial sector was up 0.4 per cent with all big four banks in the green but none by more than 0.4 per cent by lunchtime. Materials weighed on the bourse, down 0.3 per cent and the worst performing sector, with large caps BHP (-0.8), Rio Tinto (-1.2 per cent) and Fortescue (-.19 per cent) all trading lower. Geopolitical concerns helped push investors to the safe have of gold, with futures up 1.4 per cent to $US3,395 ($A5,235) an ounce, and sending miners in the precious metal higher. Genesis Minerals was the top-200's best performer, up 5.4 per cent and followed by Qantas, up more than four per cent a day after announcing plans to scrap its Jetstar Asia arm. Monash IVF rallied more than seven per cent after chief executive Michael Knaap resigned following its latest mistaken embryo scandal. Hearing device manufacturer Cochlear is up 0.4 per cent after it trimmed forward guidance but launched its latest generation implant. The Australian dollar is buying 64.87 US cents, down from 65.13 US cents on Wednesday at 5pm.
West Australian
6 days ago
- Business
- West Australian
Australian share market soars to fresh high
Australia's share market surged in morning trading to a new record, lifting past the high-water mark set in February. The benchmark S&P/ASX200 was up 34.2 points, or 0.40 per cent to 8,621.4 by midday on Wednesday, topping the Valentine's Day record of 8,615.2 points and building on the previous day's record close. The broader All Ordinaries was up 34.9 points, or 0.40 per cent, to 8,847.4, just 35 points shy of its intraday record of 8,882 points, also set on February 14. The uptick followed a positive session on Wall Street and came after officials from the US and China agreed on an in-principle framework to resolve export restrictions on rare earths and magnets. Details on the agreement remained light, and it still required approval from US President Donald Trump and China's President Xi Jingping, IG Markets analyst Tony Sycamore said. "If the two presidents review and approve the outcome of today's trade talks, it will likely include maintaining the reduction in US tariffs on Chinese goods at 30 per cent (down from 145 per cent) and Chinese tariffs on US goods at 10 per cent (down from 125 per cent)," he said. The de-escalation in US-China tensions helped lift large cap miners Fortescue (up two per cent) and BHP (up 1.8 per cent), but Rio Tinto continued to be the laggard of the iron ore giants, grinding 0.3 per cent higher. Materials stocks were among the best performing sectors, up 0.7 per cent, as energy stocks pushed 0.8 per cent higher and real estate lifted one per cent. Only two of 11 local sectors - IT and utilities stocks - were in the red by midday. Gold miners were down again as the precious metal continued to consolidate at around $US3,350 ($A5,140) an ounce. The US-China rare earths "agreement" weighed on local miners of the minerals, with Lynas Rare Earths the top-200's worst performer and down more than six per cent in early trade. An 0.8 per cent lift in energy stocks was helped by a more than two per cent charge from Woodside to $23.56, as oil prices rolled over after hitting seven week highs on Tuesday. Commonwealth Bank hit a fresh record high for a second day in a row, reaching $183.19 before easing to $182.46 and taking its value to $305 billion. CBA's big three competitors traded either side of flat as investors tempered their appetite for Australian banks' famously lofty valuations. The financial sector is trading at record levels, up 0.2 per cent for the day and up by more than 25 per cent since early April's post-"liberation day" lows. Buy now, pay later provider Zip Co was leading the top-200, rallying 14.4 per cent after upgrading forward guidance on the back of strong growth in its US business. Qantas has slipped 1.2 per cent to $10.52 after announcing it will close Jetstar Asia, its Singapore-based intra-Asia airline, due to weak earnings. The airline will redeploy 13 aircraft to Australian and NZ. The call comes two weeks before its domestic rival Virgin Australia relists on the Australian Securities Exchange. Local technology stocks took a breather after rallying on Tuesday, shedding 0.2 per cent, but data centre plays were still pushing higher, with Megaport and NextDC both up more than 1.7 per cent each. The Australian Dollar is buying 65.04 US cents, up from 65.12 US cents on Tuesday at 5pm.
