Aussie shares are backtracking after five straight sessions of gains last week. The ASX 200 is falling 66 points or 0.98% to 6,685 and is erasing nearly all of the gains made over the last two sessions last week, after climbing to within ~80 points from all-time highs at the close of trade last Friday. Wall St offered a weak lead, easing from record highs notched earlier in the week as a stronger than expected jobs report scaled-back expectations for a July interest rate cut by the US Fed Reserve.
Around 75% of the top 200 stocks on the ASX are in negative territory with every sector in the red. Miners are the major drag as the price of iron ore slumped 6.6% over the weekend. The fall was primarily due to concerns that Chinese authorities could intervene in the steel market to regulate prices. The price of iron ore still remains near the best levels in 5 years.
Major miners are declining with Rio Tinto (RIO) and BHP Group (BHP) down 1.8% and 1.6% each respectively. Fortescue Metals (FMG), which is purely an iron ore miner, is outperforming and easing just 0.1%. Smaller miner, Champion Iron (CIA) is falling 5.3% but Mt Gibson Iron (MGX) is 0.5% weaker.
Tech stocks are outperforming somewhat with Afterpay Touch (APT) up 1.1%, while the likes of Xero (XRO) and Wistech Global (WTC) are lifting around 0.5%. Elsewhere, Spotless Group (SPO) is jumping 15% after dropping 12.5% last Friday on no news released to the ASX by the company. In other news, G8 Education (GEM) has hit the lowest levels in two months on a broker downgrade. GEM shares have fallen 9.8%.
WA-based oil and gas exploration company, Carnavon Petroleum (CVN) is losing more than a fifth of its value with its share price down 21.5% on a disappointing drilling update at its operations off the coast of Port Headland. CVN had previously been in a trading halt for the past two sessions before this morning’s update. Meanwhile, gold miner Pantoro Ltd (PNR) has missed expectations with a quarterly production update, falling a similar 18.6%.
ANZ Job Ads for June rose 4.6% to 159,717 in June but is still down 9.1% over the year. The Aussie dollar is buying 69.84 US cents having fallen from its highs of 70.29 US on Friday. So far, 1b units have traded worth $1.6b with 519 stocks higher, 489 weaker and 363 unchanged.
Published by CommSec