ASX breaks rally after US credit rating cut

The news: The Australian sharemarket ended the day lower, breaking an eight-day rally, as investors reacted to a downgrade in US credit while China reported a slowdown in industrial output and retail growth.

The benchmark ASX 200 fell 0.58% to close at 8,295.1, with only two of the 11 sectors finishing in the green.

Biggest movers:

• Energy sector (-1.92%) — Was the worst performing as oil prices fell on news that Moody's Ratings downgraded the US credit from AAA to AA1. Woodside (-1.51%), Santos (-1.71%), Ampol (-0.45%), and Viva Energy (-1.53%) all dropped. Coal miner New Hope lost 7.13% after lowering its guidance.
• Materials sector (-1.49%) — Lithium miners led declines, with Liontown Resources (-16.57%) posting the biggest losses on the ASX 200 on no news. Peers Pilbara Minerals (-9.94%) and Minerals Resources (-8.79%) also fell sharply. Mineral Resources (-8.79%) announced that its chair James McClements would step down and would be replaced by Malcolm Bundey.
• Gold miners — Made up nine of the top 10 movers on the ASX 200 following a rise in gold prices after Moody's US credit rating downgrade. The best performers were Capricorn Metals (+3.44%), Regis Resources (+3.38%), and Evolution Mining (+3.18%).
• Clarity Pharmaceuticals (-12.8%) — Reversed gains made late last week.

Other news:

• NSX (+50%) — Announced that the market operator for the Canadian Securities Exchange intends to buy the stock exchange.
• Domino’s (-2.58%), Mineral Resources (-8.79%), and Hearts and Minds (-1.29%) — All announced leadership changes.
• Lendlease (-0.36%) — Confirmed that it had sold six UK development assets into a 50/50 joint venture with The Crown Estate.
• Mayne Pharma — Is in a trading halt ahead of news on US-based Cosette Pharma’s plan to buy out the Adelaide-headquartered firm.
• Telstra (-0.66%) — Vodafone has accused the top telco of misleading customers over the extent of its mobile network coverage and has applied to the competitions regulator to launch an investigation.
• Worley (-0.69%) — Announced it is reassigning its two regional group presidents to newly created global roles to help streamline delivery of major energy, chemicals, and resources projects.
• Insurer IAG (-0.92%) is trading lower after paying off $450 million in debt 20 years before its due date.
• Gentrack (-2.78%) — Flagged that its revenue during the first half of the 2025 financial year was up 9.8% year on year to NZD112 million ($103 million).