Oil slips, Aussie shares advance on peace deal hopes
The Australian stock market has made a positive start to the week, reacting to news that the US and Iran are nearing an agreement to end hostilities and reopen the Strait of Hormuz.
The S&P/ASX200 was up 38.6 points, or 0.44 per cent, at 8,695 points at midday trading on Monday, while the broader All Ordinaries was up 38.8 points, or 0.44 per cent, at 8,916 points.
Hopes for a permanent ceasefire between the United States and Iran have been boosted by news that a handful of oil and gas tankers have emerged from the Strait of Hormuz after some were stranded for nearly three months.
“Over the weekend, President Trump and his administration hinted that a first deal with Iran was close, but some points remain unresolved and it’s clear the US and Iran have different views on hard ‘red lines’,” Westpac economist Ryan Wells said. he said.
“There are early signs that risk sentiment remains supported; early trading in Sydney points to a broad-based selloff in the US dollar, with ‘risky’ currencies such as the Australian dollar benefiting as a result.”
Brent crude oil prices fell below $97 per barrel at the opening; There has been a decrease since the previous week when it was $ 112 in the same period.
ASX-listed energy stocks fell 2.3 per cent as Woodside, Santos and refinery operators Ampol and Viva came under pressure, while coal producers and uranium stocks rose.
Miners helped push the stock market in the other direction, with base material stocks rising 1.8 percent, driven by a strong recovery in gold stocks.
The precious metal rose to US$4,652 ($6,490) an ounce, with the gold subindex gaining almost four per cent.
Megaminers Fortescue and Rio Tinto gained 1.5 percent or more, while BHP rose 1.1 percent to $60.42, tracking a rise in iron ore futures.
The heavyweight financial sector lost 0.3 per cent as Westpac, NAB and ANZ made modest advances and Commonwealth Bank shares fell.
Real estate investment funds gained more than one percent, driven by a 5.5 percent rise in Charter Hall, following rising confidence and profit growth.
The industrial sector rose 0.6 per cent, led by gains of more than four and six per cent in Qantas and Virgin Australia shares, as investors turned to hopes of easing tensions in the Persian Gulf.
Consumer-facing stocks also rose; There was a 0.5 percent increase in basic foods and a 0.3 percent increase in cyclical stocks.
According to company news, Guzman y Gomez shares rose at the open, following a 10 percent rise following Friday’s well-received announcement that it would exit the U.S. market, before rising 0.9 percent.
Looking ahead, April inflation data due on Wednesday will help investors assess the impact of the energy crisis on domestic price growth ahead of the Central Bank’s mid-June meeting on monetary policy.
The Australian dollar received support from improved risk sentiment and commodity prices, buying 71.66 US cents from 71.36 US cents at 17:00 on Friday.
