Trump’s Iran war speech flips ASX 200 into the red
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Update: At 12:52pm AEDT, the ASX 200 index had slid 0.41% to 8,635.9.
More news: US President Donald Trump’s address to the nation has wiped early gains from the ASX 200 and pushed the index into the red as investors weigh assertions that the US will heavily attack Iran over the next two to three weeks, including its power plants.
However, he claimed that the US’ “core strategic objectives are nearing completion” in Iran.
The benchmark ASX 200 index was down 0.18% to 8,656.2 at 12:29 AEDT. Seven of the 11 sectoral indices were in negative territory.
The energy sector (-4.2%) continued to be the worst performing sectoral index. Woodside (-4.1%), Yancoal (-3.2%), Whitehaven Coal (-3.1%) and Santos (-3.1%) were among the biggest losers on the ASX 200.
However, WTI Crude Oil had lifted 2.6% to USD102.84 per barrel and Brent Crude lifted 3.9% USD105.14 per barrel.
Materials sector (+0.9%) businesses made up eight of the top 10 gainers on the ASX 200. This includes Alcoa (+4.7%), Greatland Resources (+4.5%) and Emerald Resources (+3.8%).
Market opens higher amid hopes Iran war will end soon; miners surge, energy slides
More news: The Australian sharemarket lifted in morning trade, tracking gains on Wall Street overnight. The lift has occurred amid optimism the Iran war will end soon and as the world awaits a speech about the conflict from US President Donald Trump.
The benchmark ASX 200 index was up 0.37% to 8,704.1 at 10:22 AEDT. Nine of the 11 sectoral indices were in positive territory.
The energy sector (-2.5%) tumbled as oil prices fell on the optimism the Iran war would end soon. Yancoal (-4.4%), Whitehaven Corporation (-3%), Woodside Energy (-2.8%), Karoon Energy (-2.5%), Nexgen Energy (-2.3%) and New Hope Corporation (-2.2%) fell.
The materials sector (+1.1%) was the best performer as commodity prices surged. Gold miners made up nine of the top 10 performers on the ASX 200 such as Regis Resources (+4.5%), Ramelius Resources (+3.9%) and Capricorn Metals (+3.8%). Aluminium producer Alcoa (+5.8%) was leading gains on the ASX 200.
Pexa (-3.8%) continued to take losses after NSW pricing regulator IPART proposed part of a new methodology for calculating the efficient price the electronic conveyancing firm can charge earlier in the week.
Australian shares to open higher as Wall St surges on hopes Iran war could end soon
The news: Australian shares are set to open higher after Wall Street rallied for a second straight session overnight amid hopes the US will soon end its war with Iran and ahead of a prime-time speech from US President Donald Trump on the situation.
The numbers: Updated at 7:10am AEDT:
- ASX futures: up 18 points, or 0.2%, to 8,727.
- Wall Street: Dow Jones up 0.48%, S&P 500 up 0.74% and the Nasdaq up 1.16%.
- Europe: CAC 40 up 2.10%, DAX up 2.73% and FTSE 100 up 1.85%.
- Spot gold: up 2.13% to USD4,767.91 per ounce.
- Oil prices: Brent fell 2.93% to USD100.92/bbl and US WTI down 1.88% to USD99.47/bbl.
- AUD: up 0.38% at 69.26 US cents.
- Bitcoin: down 0.17% to USD68,080.32
The context: All three major Wall Street indices posted gains as investors continued to weigh comments made by Trump that he could see an end to the war within two to three weeks. WTI Crude also fell below USD100 per barrel, while Brent Crude finished the session slightly above that price.
Trump is expected to deliver a speech today at 12pm AEDT in which he will provide an update on the war and reiterate operations will come to an end over the previously flagged timeline, according to reports citing White House sources.
