Source : THE AGE NEWS
The Australian sharemarket finished lower again on Tuesday, led down by gold and tech companies, after a tech sell-down weighed on Wall Street and as investors remained cautious awaiting the outcome of peace talks between the US and Iran.
The S&P/ASX 200 slipped 29.10 points, or 0.3 per cent, to 8787, the lowest level in almost two weeks, after a cautious session on Monday in which it slid 0.1 per cent. The Australian dollar was weaker at US69.52¢.
“The weakness in mega tech overnight is putting pressure on market sentiment,” said Fabien Yip, a market analyst at online brokerage IG International. “While the US-Iran peace deal continues to make progress, there are still fundamental differences on how both countries interpret the terms.”
Energy stocks were mostly lower after oil prices extended declines on signs of progress in the talks, which included a US waiver allowing some sales of crude and fuels from the Islamic Republic. That will offer Tehran an economic lifeline and help facilitate the sale of more than 30 million barrels of oil that left Iran for Asia in the past week.
Brent crude slid towards $US77 a barrel after falling 3.3 per cent on Monday, the biggest drop in almost a week, while West Texas Intermediate was near $US73. Local oil and gas giant Woodside ended down 0.4 per cent, while Santos edged up 0.1 per cent. Refiners Ampol and Viva Energy dropped 1 per cent and 2.4 per cent, respectively. Yancoal lost 1.9 per cent.
“There is still a long road ahead in negotiations, and the market may be pricing in a surplus before it arrives, just as it priced in a deficit before barrels were actually lost,” said Rebecca Babin, managing director and senior energy trader at CIBC Private Wealth. “Crude has a habit of overshooting.”
The mining giants turned lower in afternoon trade. Iron ore and copper heavyweights BHP (down 0.7 per cent) and Fortescue (down 1.7 per cent) extended their losses from Monday, while Rio Tinto finished unchanged.
Gold miners slumped as bullion prices declined, with inflationary concerns overshadowing the optimism around the peace negotiations. Higher consumer prices stoked by nearly four months of conflict in the Middle East have raised the likelihood that central banks will increase borrowing costs — a headwind for precious metals, which don’t pay interest. Northern Star Resources fell 2.7 per cent, Evolution Mining lost 2.5 per cent and Evolution Mining gave up 2.1 per cent.
Financial stocks turned higher as the session progressed. CBA rose 0.6 per cent, Westpac added 0.7 per cent and National Australia Bank climbed 1.2 per cent.
Of the tech stocks, software makers Xero and Technology One tracked the tech sell-down in the US, slumping 5.3 per cent and 7.1 per cent, respectively. AI data centre operator NextDC fell 1.7 per cent.
WiseTech initially pared back some of its heavy losses from Monday, but then extended its sell-off. The embattled software maker finished down 4.4 per cent despite hitting back at allegations the Australian Federal Police are investigating its executive chairman, Richard White, over claims of sexual exploitation and providing false information on a visa application.
WiseTech said the company wasn’t aware of any such investigation and that White “emphatically and unequivocally” denies any involvement in human trafficking. Also, the alleged investigation relates to White in a personal capacity and there is no suggestion of any probe into the company itself, it added.
This masthead reported on Monday that federal police are investigating the billionaire businessman over claims he exploited a woman’s immigration status and financial insecurity for sex and that he provided false information on a visa application. He denied the allegations.
On Wall Street overnight, the S&P 500 slipped 0.3 per cent, coming off its 11th winning week in the last 12, and pulled 1.7 per cent below its all-time high set early this month. The Dow Jones was up 0.3 per cent and the Nasdaq composite was 1 per cent lower.
SpaceX shares dived 16.4 per cent to drop to $US154.60. It is Elon Musk’s company’s third-straight loss following a big three-day run since its ballyhooed debut on the US stock market, when it initially sold its stock at $US135 per share.
Other tech giants also declined. AI chipmaker Nvidia lost 1 per cent, Microsoft fell 3.2 per cent, Google owner Alphabet lost 5 per cent and Amazon shed 4.8 per cent.
Elsewhere on Wall Street, AbbVie climbed 6.3 per cent after saying it agreed to buy Apogee Therapeutics and its potential treatments for patients with dermatologic, respiratory and other related inflammatory and immunological diseases. Apogee Therapeutics soared 46.7 per cent following the announcement of the deal, valued at roughly $US10.9 billion.
The lower oil prices overnight did not pull down Treasury yields in the bond market. The yield on the 10-year Treasury climbed to 4.51 per cent from 4.46 per cent late Thursday and from just 3.97 per cent before the war.
Tributes for former Federal Reserve chairman Alan Greenspan poured in after the news of his death, many from former colleagues and market players who had a front-row seat during his 18-year tenure atop the US central bank.
Several described him as a driving force for change at the Fed and a guiding light for investors — in his own inscrutable way — even as his ultimate legacy is clouded by the 2008-09 global financial crisis.
Policymakers and staff who worked with Greenspan noted how his tenure spanned a period of significant economic change, from an era of high inflation to an economy powered by technology.
Greenspan led the Fed from 1987 until 2006 and died on Monday at his home in Washington.
In other international markets, the United Kingdom’s FTSE 100 rose 0.7 per cent after Keir Starmer said he was stepping down as leader of the governing Labour Party and will leave office within weeks.
With AP, Bloomberg
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