The Australian stock market is modestly lower on Thursday, retreating from record all-time highs and expending losses of the previous session, with the benchmark S&P/ASX 200 staying above the 7,300 level off all-time highs, as mining, technology and energy stocks fell, offsetting gains in the financial sector. The cues overnight from Wall Street were also negative after the US Fed tipped an earlier-than-expected rise in interest rates.
Meanwhile, the Australian Reserve Bank governor Phil Lowe sounded a warning to the nation’s lenders to maintain borrowing standards given soaring house prices.
The benchmark S&P/ASX 200 Index is losing 35.70 points or 0.48 percent to 7,350.50, after hitting a low of 7,341.90 earlier. The broader All Ordinaries Index is down 44.70 points or 0.59 percent to 7,588.70. Australian markets ended slightly lower on Wednesday.
Among major miners, BHP Group and Rio Tinto are losing almost 2 percent each, while Fortescue Metals is lower by more than 3 percent. Mineral Resources is down more than 2 percent and OZ Minerals is declining almost 4 percent.
Oil stocks are lower. Oil Search is edging down 0.4 percent, Woodside Petroleum is down almost 3 percent, Beach Energy is declining almost 2 percent and Santos is lower by more than 2 percent Origin Energy is down almost 1 percent.
Among Tech stocks, Appen, Xero and WiseTech Global are edging down 0.3 percent each, while Afterpay is losing almost 1 percent.
Among the big four banks, Westpac and ANZ Banking are gaining more than 1 percent each, while Commonwealth Bank and National Australia Bank are adding almost 1 percent each.
Gold miners are lower after gold prices tumbled overnight. Evolution Mining is losing more than 3 percent and Northern Star Resources is down more than 5 percent, while Resolute Mining and Gold Road Resources are lower by more than 2 percent each. Newcrest Mining is down almost 2 percent.
In other news, shares in Coles are losing more than 4 percent after the supermarket giant told investors it plans to grow its business and recoup the recent near 1.3 percent drop in market share through a range of new investments, with the company set to spend an additional $1.4 billion next financial year on top of the $1.1 spent this.
Shares in Whitehaven Coal are plummeting more than 9 percent after the coal miner trimmed its full-year production guidance due to a disrupted performance at the Narrabri mine in NSW, and a softer performance at Gunnedah. It has already cut its sales guidance twice this year.
Kerry Stokes-controlled media firm Seven West Media said it expects to beat consensus earnings figures for the full year aided by stronger audience numbers and a rebound in advertising revenue. The stock is surging more than 10 percent.
In the currency market, the Aussie dollar is trading at $0.773 on Thursday.
On Wall Street, stocks finished Wednesday’s trading mostly lower, reflecting a negative reaction to the Federal Reserve’s highly anticipated monetary policy announcement. With the drop on the day, the Nasdaq and the S&P 500 pulled back further off Monday’s record closing highs.
The major averages climbed well off their lows of the session but still closed in negative territory. The Dow slid 265.66 points or 0.8 percent to 34,033.67, the Nasdaq dipped 33.17 points or 0.2 percent to 14,039.68 and the S&P 500 fell 22.89 points or 0.5 percent to 4,223.70.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both crept up by 0.2 percent.
Crude oil futures failed to hold early gains and settled roughly flat on Wednesday, despite data showing a larger than expected drop in crude inventories last week. West Texas Intermediate Crude oil futures for July ended up by $0.03 at $72.15 a barrel after peaking earlier at $72.99.
Market Analysis
Australian Market Modestly Lower
2021-06-17 01:50:45
