ASX swings to green as gold and iron ore miners rally
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More news: The ASX 200 reversed a decline at the open as gains by gold and iron ore stocks pushed shares 0.45% higher by midday.
Gold producers made up nine of the 10 top performing companies, as the spot gold price surged on growing uncertainty over tariffs and expectations of monetary policy easing by the US Federal Reserve. Genesis Minerals (6.8%) and Regis Resources (6.2%) led the rally.
Elsewhere, iron ore giants Fortescue (2%), BHP (1.7%) and Rio Tinto (1.4%) all advanced, with materials (2.2%) the best performing sector.
Australian shares to fall as Wall Street slides into correction
The news: The Australian sharemarket is set to open lower as local investors react to Wall Street’s sharp losses, with the S&P 500 officially entering correction, as Trump’s latest tariff threats against Europe further fuel fears of a spiralling trade war and ensuing inflationary pressures.
The numbers: Updated at 7.25am AEDT:
- ASX futures: down 12 points or 0.15% at 7,741 points
- Wall Street: Dow Jones down 1.30%, S&P 500 down 1.39%, Nasdaq down 1.96%
- Europe: FTSE 100 up 0.02%, CAC 40 down 0.64%, DAX down 0.48%
- Spot gold: up 1.66% to USD2,983.51 per ounce
- Oil prices: Brent down 1.54% to USD69.86/bbl, US WTI down 1.61% to USD66.59/bbl
- AUD: down 0.61% at 62.81 US cents
- Bitcoin: down 3.61% to USD80,657.84.
The context: All three major US stock indices ended sharply lower, with the S&P 500 confirming it is in a correction, while losses in tech and tech-related megacap shares dragged the Nasdaq down most. Trump's multi-front trade war escalated with the president threatening to charge a 200% tariff on imports of European wines and spirits after the European Union responded to blanket US tariffs on steel and aluminum by imposing a 50% tax on American whiskey exports. That overshadowed cooler-than-expected readings of the Producer Price Index (PPI) which appeared to confirm US inflation remains on its meandering path downward.
What to watch: The Council of Financial Regulators will publish its quarterly statement.
The source: Bloomberg
