ASX opens 1% lower in broad selloff as gold miners lead losses
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More news: Australian shares opened sharply lower with gold miners leading losses, as each of the 11 sectoral indices fell into the red.
The benchmark S&P/ASX 200 index was down 81 points, or 0.94%, to 8,549.3 at 10:30am AEST.
Gold miners made up nine of the 10 worst performing ASX 200 stocks. Newmont (-4.7%) was one of the hardest hit after announcing divestments in Greatland Resources and Discovery Silver Corp. Northern Star (-2.5%) lowered after selling its 50% stake in the Central Tanami gold project. Evolution Mining (1.4%) resisted the selloff after hitting its FY25 guidance.
Elsewhere, the big banks were all lower, with Commonwealth Bank, NAB and Westpac all dropping more than 1%. Mining giants BHP (-1.4%) and Fortescue (-1.3%) also retreated, while Rio Tinto (-0.4%) saw a more modest fall after reporting improved production for the second quarter.
Australian shares to fall as US stocks retreat on inflation data, mixed earnings
The news: Australian shares are set to fall at the open after a mixed session on Wall Street, where megacap Nvidia powered the Nasdaq to another record close, but mixed banking earnings and inflation data saw the Dow Jones and S&P 500 slide.
The numbers: Updated at 7:30am AEST:
- ASX futures: down 66 points, or 0.8%, to 8,545
- Wall Street: Dow Jones down 0.98%, S&P 500 down 0.40%, and Nasdaq up 0.18%
- Europe: CAC 40 down 0.54%, DAX down 0.42%, and FTSE 100 down 0.66%
- Spot gold: down 0.57% to USD3,325 per ounce
- Oil prices: Brent up 0.22% to USD68.86/bbl, and US WTI down 0.34% to USD66.75/bbl
- AUD: down 0.49% to 65.18 US cents
- Bitcoin: up 0.23% to USD116,707.
The context: The tech-heavy Nasdaq notched its fourth record close in five sessions after AI chip giant Nvidia surged 4%.
Rival chipmakers Advanced Micro Devices (6.4%) and Super Micro Computer (6.9%) also climbed after the US government reversed restrictions on sales of certain AI chips to China.
The first day of second-quarter earnings season in the US was a mixed bag, as BlackRock (-5.9%) and Wells Fargo (-5.5%) ended sharply lower despite positive headline results. JPMorgan Chase slipped 0.7% while Citigroup rose 3.7%.
Elsewhere, new data showed US consumer prices saw their biggest jump in five months in June, potentially signalling that companies are beginning to pass on tariff costs to consumers. The new figures led traders to price in lower odds that the Federal Reserve will cut rates more than once this year.
