Australian Market Slightly Higher

Australian stock market is slightly higher after recouping early losses on Friday, extending the gains of the previous two sessions, with the benchmark S&P/ASX 200 staying above the 7,200 level near fresh all-time highs for the second straight day, as losses in gold miners and iron ore miners due to sliding commodity prices on the back of a stronger US dollar and higher US yields were offset by gains in energy and financial stocks. The cues overnight from Wall Street were negative.

Traders also remain concerned after the lockdown was extended in Melbourne area in the country’s second-most populous state of Victoria as a cluster of COVID-19 cases steadily grew in Victoria, which recorded four new local cases. The outbreak in Victoria has reached a count of 73 active cases.

The benchmark S&P/ASX 200 Index is gaining 6.60 points or 0.10 percent to 7,266.70, after touching a high of 7,282.30 and a low of 7,244.30 earlier. The broader All Ordinaries Index is down 0.3 points or 0.00 percent to 7,510.40. Australian markets ended modestly higher on Thursday.

The major miners are lower. BHP Group and Fortescue Metals are losing almost 2 percent each, while Rio Tinto is down more than 2 percent, Mineral Resources is lower by more than 1 percent and OZ Minerals is declining more than 4 percent.

Oil stocks were higher. Oil Search is gaining almost 1 percent, Origin Energy is surging more than 3 percent and Woodside Petroleum is adding more than 1 percent. Santos and Beach energy are edging up 0.1 percent each.

Among tech stocks, Afterpay is edging down 0.3 percent, WiseTech Global is losing almost 1 percent and Xero is down almost 2 percent. Appen is declining more than 4 percent after its CEO Mark Brayan sold $1.43 million worth of shares to satisfy tax obligations arising from the vesting of performance rights.

Among the big four banks, National Australia Bank, ANZ Banking and Commonwealth Bank are gaining almost 1 percent each, while Westpac is adding more than 1 percent.

Gold miners are lower after gold prices plummeted overnight. Evolution Mining is losing almost 4 percent and Resolute Mining is down almost 5 percent, while Northern Star Resources and Gold Road Resources are declining more than 4 percent each. Newcrest Mining is down almost 2 percent.

In other news, shares in BARD1 Life Sciences are losing almost 9 percent after the cancer diagnostics firm told investors a court case brought against it by the original founders of the company had started in the Supreme Court.

Discount retail chain The Reject Shop told investors that it has been forced to lower expectations for its full year sales and profits due to the company’s sales failing to recover to a pre-COVID norm. The stock is plummeting more than 11 percent.

In the currency market, the Aussie dollar is trading at $0.766 on Friday.

On Wall Street, stocks staged a recovery attempt but still ended Thursday’s trading mostly lower, after coming under pressure early in the session. The Dow posted a modest loss on the day, while the tech-heavy Nasdaq closed sharply lower.

The Dow edged down just 23.34 points or 0.1 percent to 34,577.04 after tumbling by more than 250 points in early trading. The Nasdaq slumped 141.82 points or 1 percent to 13,614.51 and the S&P 500 fell 15.27 points or 0.4 percent to 4,192.85.

The major European markets also ended the day mixed. While the German DAX Index edged up by 0.2 percent, the French CAC 40 Index dipped by 0.2 percent and the U.K.’s FTSE 100 Index slid by 0.6 percent.

Crude oil futures settled roughly flat on Thursday after two straight days of strong gains as traders reacted to inventory data and weighed energy demand prospects. West Texas Intermediate Crude oil futures for July ended down $0.02 at $68.81 a barrel.

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