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ASX inches lower as miners and banks weigh on market
By Millie Muroi
Welcome to your five-minute recap of the trading day.
The numbers
Banks and miners dragged the Australian sharemarket lower on Friday despite a positive lead from the European market and Wall Street taking a breather for the July 4 holiday.
The S&P/ASX 200 Index fell 9.5 points, or 0.1 per cent, to 7822.3 at the close. The Australian dollar was stronger against the US dollar, fetching US67.29¢ as traders mulled the possibility of a Reserve Bank rate hike in August and a rate cut by the US central bank following a string of softer-than-expected economic data.
European markets took centre stage with Wall Street closed.Credit: Getty Images
However, the Australian dollar weakened against the pound sterling just after midday after the UK election delivered a decisive victory for Keir Starmer’s Labour Party.
The lifters
Safe haven stocks were strong performers on Friday with consumer staples (up 0.3 per cent), healthcare (up 0.7 per cent) and utilities (up 0.4 per cent) sectors trading in the green. Woolworths (up 0.6 per cent), Sonic Healthcare (up 1.4 per cent) and Origin (up 0.8 per cent) were all stronger.
However, by the close, tech companies (up 0.4 per cent), communication services (up 0.5 per cent) and consumer discretionary stocks (up 0.4 per cent) were also traded in positive territory.
Yancoal (up 1.7 per cent) and Whitehaven (up 0.3 per cent) continued a rally by Australian coal stocks this week following a fire at rival Anglo American’s Australian coal projects last weekend. BlueScope Steel (up 1.7 per cent), Telix Pharmaceuticals (up 1.7 per cent) and Qantas (up 1.5 per cent) were the biggest large-cap advancers.
The laggards
Miners (down 0.5 per cent) and financials (down 0.5 per cent) were the weakest sectors. Iron ore heavyweights Fortescue (down 0.9 per cent), BHP (down 0.9 per cent) and Rio Tinto (down 1.1 per cent) also dragged the index lower along with three out of the four big four banks. The country’s largest bank, CBA, lost 0.6 per cent.
Seven Group Holdings (down 3.8 per cent) was the biggest large-cap decliner, followed by boutique investment firm GQG Partners (down 1.7 per cent) and Pilbara Minerals (down 1.6 per cent).
The lowdown
AMP chief economist Shane Oliver said sharemarkets mostly rose over the last week.
“US shares were buoyed by increasing confidence in Fed rate cuts this year and strength in tech stocks [and] Eurozone shares were boosted by reduced fears about the outcome of the French election,” he said. “Reflecting the positive global lead, Australian shares rose around 0.6 per cent, driven by resources and property shares.”
European stocks rose as key elections held centre stage.
French stocks outperformed, boosting the broader market, as polls showed Marine Le Pen’s National Rally and its allies would fall well short of an absolute majority in Sunday’s French parliamentary election. The UK’s FTSE 100 was up 0.9 per cent, with the Labour Party seen winning elections by a landslide.
The CAC 40 Index rose 0.8 per cent by the close as polling and market research firm, Ifop, said the far-right group was on course to win between 210 and 240 of the 577 seats in the National Assembly, meaning it would lack the 289 lawmakers needed to pass bills easily and push through its agenda.
Tweet of the day
Quote of the day
”The business will keep growing and never stop,” said Teng “Anthony” Mu, who established Sharetea’s presence in Australia in early 2012, after a long-running legal tussle between Sharetea Australia and the Taiwanese parent company behind the bubble tea brand ended with the local business gaining exclusive and indefinite rights in Australia.
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