ASX opens lower as gold producers slide; Bapcor dives 17%
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More news: Australian shares edged down at the open, as broad gains across the market were offset by a selloff in mining stocks.
The benchmark S&P/ASX 200 index was down 3.2 points, or 0.04%, at 8,992.1 at 10:30am AEDT. Nine of the 11 sectoral indices were in the green as the mining sector dropped 1.9%.
Gold miners made up most of the worst performers on the ASX 200, tracking a slide in gold prices. Emerald Resources (-7.9%), Catalyst Metals (-7.7%) and Westgold Resources (-6.3%) were the hardest hit.
Vehicle parts provider Bapcor tanked 17.4% after unveiling a slate of cost-saving initiatives and confirming a $12 million hit to first-half earnings.
Uranium miner Deep Yellow tumbled 14.2% after announcing the departure of long-time managing director and CEO John Borshoff.
Meanwhile, Neuren Pharmaceuticals was the best performer on the ASX 200, adding 8.8% after the US Food and Drug Administration granted the biotech fast track designation for its clinical-stage drug to treat Phelan-McDermid syndrome.
Zip (+5.2%) and Beach Energy (+4.6%) were also higher after releasing positive trading updates this morning.
Australian shares to fall with US data, earnings in focus
The news: Australian shares are set to drop at the open, as investors await further developments on the US-China trade war and prepare to assess another batch of high-profile Wall Street earnings reports due this week.
The numbers: Updated at 7:30am AEDT:
- ASX futures: down 21 points to 8,966
- Wall Street: Dow Jones up 0.52%, S&P 500 up 0.53% and Nasdaq up 0.52%
- Europe: CAC 40 down 0.18%, DAX down 1.82% and FTSE 100 down 0.86%
- Spot gold: down 1.81% to USD4,250 per ounce
- Oil prices: Brent up 0.38% at USD61.29/bbl and US WTI up 0.14% to USD57.54/bbl
- AUD: up 0.01% to 64.88 US cents
- Bitcoin: up 1.61% to USD108,943.
The context: Wall Street traders will turn to another round of third-quarter earnings this week, including reports due from Netflix, Tesla, Procter & Gamble and Coca-Cola.
Meanwhile, the US government has said it will release the US consumer price index (CPI) for September on Friday, nine days late.
The federal government has been shut down since 1 October, preventing the release of official economic data, but said the CPI report allows the Social Security Administration to meet deadlines for benefits payments.
The data will be released days before the US Federal Reserve's next monetary policy meeting on 28-29 October, with the central bank widely expected to cut interest rates by 0.25% again.
In the local market, Tabcorp, Meridian Energy and Cleanaway Waste Management will host their annual general meetings this morning.
