Australian shares edge into the green as tech stocks rally
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More news: Australian shares erased early losses and edged into positive territory during afternoon trading.
The benchmark S&P/ASX 200 index was up 3.4 points, or 0.04%, to 8,544.7 at 1:30pm AEST. Eight of the 11 sectoral indices were in the green.
Tech stocks led gains as the sector's largest three companies Technology One (2.2%), WiseTech Global (2%) and Xero (1%) all rallied.
Uranium producers were once again among the day's biggest winners. Deep Yellow (4.8%) was the best performing ASX 200 stock after Morgans hiked its price target on the company. Boss Energy (4%) rose after its flagship Honeymoon project met its full-year production guidance.
Miners remained the worst performers. The sector shed 1.6% as iron ore giants Fortescue (-4.3%) and BHP (-1.3%) both tumbled. Mineral Resources (-5%), Ramelius Resources (-4.5%) and Liontown Resources (-4.3%) also saw some of the biggest losses.
Australian shares open lower; Fortescue, BHP drop as iron ore prices tumble
More news: Australian shares lowered in early trading, tracking a retreat by global stocks overnight, as iron ore miners led losses.
The benchmark S&P/ASX 200 index was down 17.2 points, or 0.2%, to 8,524.1 at 10:30am AEST. Six of the 11 sectoral indices were in the red.
Iron ore giants Fortescue (-2.8%), BHP (-1.2%) and Rio Tinto (-0.8%) all dropped after iron ore prices dipped to their lowest level since September last year.
Fellow miners Mineral Resources (-3.3%), Pilbara Minerals (-2.6%) and Liontown Resources (-2.2%) also retreated.
Oil companies Beach Energy (3.7%), Viva Energy (3.4%), Ampol (3.2%) and Karoon Energy (2.7%) made up four of the five best performing ASX 200 stocks. Their larger rivals Woodside Energy (0.9%) and Santos (0.8%) also advanced as global crude prices spiked overnight in response to ongoing conflict between Israel and Iran.
Uranium miner Boss Energy (2.2%) gained after its flagship Honeymoon project met its full-year production guidance. Cochlear (2%) also rallied as UBS upgraded its rating on the hearing implant manufacturer.
Australian shares to open lower as Israel-Iran conflict intensifies
The news: Australian shares are set to open lower as global stocks retreated overnight, on concerns of escalating conflict in the Middle East after US President Donald Trump demanded Iran's "unconditional surrender".
The numbers: Updated at 7:30am AEST:
- ASX futures: down 16 points to 8,529
- Wall Street: Dow Jones down 0.7%, S&P 500 down 0.84%, and Nasdaq down 0.91%
- Europe: CAC 40 down 0.76%, DAX down 1.12%, and FTSE 100 down 0.46%
- Spot gold: flat at USD3,388 per ounce
- Oil prices: Brent up 4.89% to USD76.81/bbl, and US WTI up 5.16% to USD75.47/bbl
- AUD: down 0.75% to 64.75 US cents
- Bitcoin: up 0.05% to USD104,444.
The context: US and European stocks closed lower, as crude prices extended recent gains, after Trump left the G7 summit in Canada early to address the intensifying conflict between Israel and Iran.
Meanwhile, new economic data weighed on investor sentiment in the US. Retail sales fell for a second consecutive month in May, signalling that concerns around tariffs are prompting American consumers to pull back on spending.
Officials from the US Federal Reserve have said they are waiting to see how Trump’s policies will impact the economy, and are widely expected to keep interest rates on hold when they gather this week.
