ASX opens lower as energy stocks lead losses; Iluka and Lynas plunge
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More news: Australian shares slipped at the open, tracking losses on Wall Street overnight as energy stocks slumped. The benchmark S&P/ASX 200 index was 28.6 points, or 0.32%, lower at 9,039.8 at 10:30am AEDT. Seven of the 11 sectoral indices were in the red.
Energy stocks (-1.8%) were the big losers in early trading, as oil giants Woodside (-1.6%) and Santos (-1.1%) followed benchmark crude prices lower. Uranium miners Paladin Energy (-6.8%), Deep Yellow (-6.5%) and Boss Energy (-4.6%) also saw sharp losses.
Meanwhile, critical minerals miner Iluka Resources tanked 12.8% after withdrawing guidance for synthetic rutile sales. Rare earths producer Lynas (-9.9%) also dived.
Gold miners made up most of the top performers on the ASX 200, as benchmark prices continue to soar. Westgold Resources (+4.3%), Greatland Resources (+4.2%) and Newmont Corporation (+4.1%) led the way.
Financial software provider Iress jumped 5.5% after confirming further engagement with multiple new potential suitors.
Australian shares to extend rally, even as credit fears wobble Wall Street
The news: Australian shares are set to lift at the open after rallying to a new record close on Thursday, as each of the three main US indices lowered overnight.
The numbers: Updated at 7:30am AEDT:
- ASX futures: up 23 points, or 0.25%, to 9,099
- Wall Street: Dow Jones down 0.65%, S&P 500 down 0.60% and Nasdaq down 0.47%
- Europe: CAC 40 up 1.38%, DAX up 0.38% and FTSE 100 up 0.12%
- Spot gold: up 2.54% to USD4,316 per ounce
- Oil prices: Brent down 2.23% at USD61.03/bbl and US WTI down 2.12% to USD57.51/bbl
- AUD: up 0.40% to 64.87 US cents
- Bitcoin: down 2.29% to USD108,223.
The context: Wall Street closed lower as shares in Zions Bancorporation (-13.1%) and Western Alliance (-10.8%) both tanked, after the regional banks disclosed losses on loans tied to alleged fraud. The news stoked concerns about credit quality in the US economy, sending bonds and gold higher.
Meanwhile, US President Donald Trump and his Russian counterpart Vladimir Putin agreed to meet in Budapest during a two-hour phone call. The conversation took place a day before Ukrainian President Volodymyr Zelenskiy's next visit to the White House.
