ASX drops as iron ore miners drag
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The news: The Australian sharemarket ended lower as iron ore investors were left disappointed that China's National Development and Reform Commission (NDRC) did not announce any new fiscal measures.
The numbers: The benchmark ASX 200 dropped 0.35% to end at 8,176.9, with seven out of 11 sectors finishing in red.
Materials was the worst performing sector, down 1.74%, followed by IT (-1.07%). Iron ore miners Fortescue (-5.21%), BHP (-2.03%) and Rio Tinto (-0.43%) shares tumbled after China held off announcing new stimulus but said it looked to speed up spending.
Rio and Arcadium Lithium (-2.63%) reversed earlier gains after the former confirmed on Monday that it had approached Arcadium for a potential acquisition.
Neuren Pharmaceuticals dropped 4.51% after a muted update on its drug trial design for Phelan-McDermid syndrome despite Wilsons Advisory analysts retaining their ‘overweight’ rating on the stock.
Clarity Pharmaceuticals fell 3.3% despite the company entering into a clinical manufacturing agreement to produce a diagnostic product for prostate cancer.
The best performing sector was healthcare, up 0.75%, followed by utilities (0.29%).
Gold miners were some of the best performers across the ASX 200 with West African Resources (7.09%) taking the top spot after it was told by government officials that its mining permits in Burkina Faso are in "good standing". Vault Minerals (4.84%), Bellevue Gold (2.72%) and Capricorn Metals (1.92%) all gained.
DroneShield shares lifted 1.13% after announcing it had secured a $13.5 million repeat order from a US government customer for its counterdrone systems.
Judo Bank shares rose 1.08% after UBS initiated coverage of the bank with a 'buy' rating as it had carved out a ‘credible niche’.
The Australian dollar is buying 67.37 US cents.
The context: Overnight will see the US Federal Reserve release its latest monetary policy minutes.
Wednesday will see REA Group hold its annual general meeting while Christopher Kent, the Reserve Bank’s assistant governor (financial markets), will speak.
