Aussie shares waver as US-Iran peace deal stalls
The Australian stock market started the week on a negative note at the weekend as investors looked for signs of progress after little hope of progress in US-Iran talks.
The S&P/ASX200 fell 14.6 points, or 0.16 percent, to 8,717.4 points at midday, while the All Ordinaries lost 6.5 points, or 0.07 percent, to 8,958.5 points.
“Negotiations between the United States and Iran remain a source of extraordinary concern and a potential source of volatility going forward,” said Kyle Rodda, senior market analyst at Capital.com.
“The price movement signals a market placing legendary bets that the deal will go through, despite apparent differences between both sides over Iran’s uranium enrichment, nuclear program and control of the Strait of Hormuz.”
Only IT and basic materials stocks were trading clearly higher at midday, with domestic technology gaining more than five percent after Wall Street’s tech-heavy Nasdaq index hit new highs on Friday.
Megaminers BHP and Rio Tinto were up more than 0.7 per cent as copper prices rose, but iron ore futures were trading around US$105 a tonne.
Gold stocks were generally higher, with the precious metal rising as high as US$4,530 ($A6,305) per ounce.
Lithium producers PLS and Liontown each charged green more than 2.7 percent, while rare earth producers Lynas and Iluka lost ground.
The financial heavyweight fell 0.4 per cent as CommBank dropped three of its four major rivals, while NAB rose 0.2 per cent to $37.39.
Property stocks were also heavy, falling one per cent to their lowest level in years after Lendlease announced the Santa Giulia mixed-use project in Milan would be sold for around $250 million.
Health care stocks fell 1.5 percent amid a broad-based selloff.
Pro Medicus was a notable exception; Its shares rose more than nine percent to $144.79 after signing $46 million in new and renewed contracts with healthcare providers Allegheny and TidalHealth.
Consumer-facing stocks were under pressure; staples fell 1.4 percent and cyclicals fell 0.5 percent.
In company news, TPG Telecom has appointed former Telstra executive Nerida Caesar to its board as an independent, non-executive director.
Shares in fashion retailer Cettire rose by more than a fifth after it signed a partnership with Alibaba Group’s cross-border e-commerce platform TMall Global.
Looking ahead, the Australian Bureau of Statistics will release April GDP figures on Wednesday and Reserve Bank governor Michele Bullock will debate the federal budget before the Senate Economics Legislation Committee on Thursday.
The Australian dollar is buying 71.86 US cents at 71.61 US cents at 5pm on Friday.
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