ASX opens lower as WiseTech and CSL plummet
Make us a preferred source
Make us a preferred source on Google
More news: Australian shares fell at the open as WiseTech Global and CSL led heavy losses for the tech and healthcare sectors respectively, despite seven of the 11 sectoral indices moving to positive territory.
The benchmark S&P/ASX 200 index was up 27.6 points, or 0.3%, to 9,028 at 11:02am AEDT.
Healthcare (-6.9%) was the worst performing after CSL (-15.1%) downgraded its full-year profit and revenue outlook on lower-than-expected US vaccination rates and government cost containment measures in China. Pro Medicus (-0.9%) and Resmed (-0.7%) were also lower.
The tech sector (-3.7%) had also performed poorly after WiseTech (-16.3%) told the exchange that its Sydney offices had been searched by the federal police and the Australian Securities and Investments Commission (ASIC) on Monday.
The officials had requested documents relating to trading in the company’s shares by founder and executive chair Richard White as well as three other employees between late 2024 to early 2025.
Liontown Resources (-11%) also fell after posting a 29% quarter-on-quarter fall in revenue while gold miners like Greatland Resources (-9.7%) and Westgold Resources (-8.3%) tracked an overnight fall in the spot price of gold.
Insurance broker AUB group (+8.5%) led gains after announcing it has received an acquisition proposal from Swedish private equity firm EQT that values the company at more than $5.2 billion.
Australian shares to fall as US stocks hit record highs for second straight day
The news: Australian shares are set to open lower after global gold and oil benchmarks fell overnight, while investor optimism over a potential US-China trade deal drove Wall Street's three main indices to record closing highs for the second session in a row.
The numbers: Updated at 7:30am AEDT:
- ASX futures: down 40 points to 9,020
- Wall Street: Dow Jones up 0.71%, S&P 500 up 1.23% and Nasdaq up 1.86%
- Europe: CAC 40 up 0.16%, DAX up 0.28% and FTSE 100 up 0.09%
- Spot gold: down 2.78% to USD3,998 per ounce
- Oil prices: Brent down 0.07% at USD65.90/bbl and US WTI up 0.10% to USD61.56/bbl
- AUD: up 0.66% at 65.59 US cents
- Bitcoin: up 0.20% to USD114,711.
The context: Each of Wall Street's three main indices reset record closing highs, driven by optimism ahead of the highly anticipated meeting between US President Donald Trump and his Chinese counterpart Xi Jinping on Thursday. Trump told reporters on Monday that “I really feel good” about a deal with China, after officials announced a number of agreements to ease tensions.
Traders are also looking ahead to third-quarter earnings from five of the 'Magnificent Seven' tech megacaps, with Microsoft, Apple, Alphabet, Amazon and Meta all due to report later this week.
In the local market, CSL, Credit Corp, PolyNovo and Austal are among the companies holding annual general meetings today.
