ASX opens lower as mining stocks drag for a second consecutive session
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More news: Australian shares fell at the open as mining stocks dragged the market index lower for a second consecutive session.
This decline cancelled out the positive momentum from weaker crude oil prices, which slid after Trump stated that talks with Iran were progressing well overnight, despite Hezbollah rejecting a US-brokered ceasefire agreement between Israel and Lebanon.
The benchmark ASX 200 was down by 53.5 points, or 0.62%, to 8,632 at 10:39am AEST. Seven of the 11 sectoral indices opened in the red.
Healthcare (+2.2%) was the strongest performing sector at the open, supported by a lift in CSL (+2.5%), Pro Medicus (+2.4%), Resmed (+4.6%) and Cochlear (+3.4%).
Megaport (+22.1%) climbed at the open after completing its $827.3 million entitlement offer, raising around $518 million.
Tuas (+4.5%), Life360 (+4.1%), Mesoblast (+3.9%) and Netwealth (2.6%) were among the best performing stocks across the ASX 200.
Elsewhere, mining (-1.8%) was the weakest performing sector for a second straight session at the open, weighed down by BHP (-2.4%), Fortescue (2.4%), South32 (-2.7%) and PLS (-3.9%).
Resolute Mining (-7.5%) slumped at the open after slashing its second-quarter gold production forecast due to ongoing logistical and supply chain disruptions in Mali.
Miners accounted for the top 10 ASX 200 laggards at the open.
On the data front, the ABS is scheduled to release the labour account data at 11:30am AEST.
Australian shares to open higher as Dow closes at record high
The news: The Australian sharemarket is set to open higher after US stocks advanced overnight, with the Dow Jones closing at a record high, supported by gains in healthcare and financial stocks. Investors are also closely monitoring developments in the Middle East as fighting continues in Lebanon.
The numbers: Updated at 8:00am AEST:
- ASX futures: up 48 points to 8,739 points
- Wall Street: Dow Jones up 1.73%, S&P 500 up 0.41%, Nasdaq down 0.09%
- Europe: FTSE 100 up 0.27%, CAC 40 up 1.15%, DAX up 0.60%
- Spot gold: up 0.89% to USD4,474.62 per ounce
- Oil prices: Brent down 2.66% to USD95.20/barrel, US WTI down 3.33% to USD92.77/bbl
- AUD: up 0.09% at 71.34 US cents
- Bitcoin: down 1.27% to USD63,273
The context: The Dow Jones rose 1.7% to record its 15th record close of the year, according to WSJ, led by a rally in healthcare and financial stocks. UnitedHealth Group gained 5.2% after receiving an upgrade from Bank of America, while Goldman Sachs, JPMorgan, American Express and Visa also advanced.
The Nasdaq composite lagged, closing 0.09% lower, as AI-related stocks came under pressure. Broadcom fell 13% after its guidance on AI demand failed to meet investor expectations. The weakness spread across the semiconductor sector, with Micron Technology, Advanced Micro Devices and Qualcomm falling 7.7%, 3.5% and 3% respectively.
The S&P 500 gained 0.4%, although its tech sector declined 1.4%, weighed down by semiconductor stocks.
Elsewhere, oil prices fell on expectations that the US and Iran may be moving closer to a peace deal following a conditional ceasefire between Israel and Lebanon, despite continued clashes. Iran said on Thursday there had been no recent progress in negotiations with the US over an interim peace deal, while fighting persisted in Lebanon despite Washington’s ceasefire declaration.
Hezbollah leader Naim Qassem rejected the ceasefire proposal, calling it “absurd” and arguing it amounted to a demand for surrender while Israel continued military operations. The comments came after Israeli strikes reportedly killed at least four people and a UN peacekeeper was killed in the crossfire, AP News reported.
On the economic front, US initial jobless claims rose 6.1% last week. A report from Challenger, Gray and Christmas showed layoffs announced by US corporations jumped 11% in May to 97,006, with nearly 40% attributed to artificial intelligence.
