Aussie shares slip as brent crude hits new wartime high

Australia’s stock market continued its losing streak for an eighth straight day as soaring oil prices and the realities of a prolonged energy shock hit Woolworths and other at-risk businesses.

The S&P/ASX200 ended Thursday down 21.2 points, or 0.2 percent, at 8665.8 points, while the broader All Ordinaries index fell 28.1 points, or 0.32 percent, to 8887.6 points.

Brent crude oil prices rose above $125 a barrel – the highest levels reached since the start of the Middle East war – following reports that US President Donald Trump would escalate a possible military escalation amid deadlocked negotiations with Iran.

Moomoo Australia and New Zealand market strategist Michael McCarthy said markets were deadlocked.

“There was a lot of optimism, particularly from the US but also shared by some investors around the world, that the conflict in the Middle East would be resolved quickly,” Mr McCarthy told AAP.

“This trust is being eroded”

Australian oil and energy shares closed higher, but weakening sentiment weighed on consumer staples and mining stocks.

Australian supermarket chain Woolworths has warned that rising fuel costs due to the Middle East war are putting pressure on customers and increasing operating costs, clouding its earnings outlook with uncertainty.

Shares of the grocery giant fell 7.8 percent, while rival Coles fell 3.6 percent.

Two major supermarkets are also accused of misleading customers with misleading discounted price claims by the consumer watchdog, which is pursuing them in the Federal Court.

Miners fell overall due to weak gold prices and a worsening global growth outlook.

Diversified miner South32 fell 5.4 percent after reporting cost overruns and delays at one of its projects, while lithium and iron ore player Mineral Resources defied the trend with a 2.9 percent gain after raising full-year guidance on parts of the business.

BHP fell 2.2 percent to $53.72, Rio Tinto fell 2.0 percent to $167.40 and Fortescue fell 2.8 percent to $19.65.

Australian tech was mixed after four of the Magnificent Seven shares showed a positive outlook for the AI ​​boom.

Mr McCarthy said Australian tech stocks with exposure to artificial intelligence were the best performers, including data center operator NextDC, up 1.7 per cent, and logistics technology company WiseTech, up 3.4 per cent.

“This is not buying the entire technology, but buying a specific technology,” he said.

Financial shares finished higher, with ANZ outperforming the other Big Four banks, up 1.3 per cent to $36.65.

CommBank was up 0.9 per cent to $173.66, Westpac was up 0.7 per cent to $38.50 and NAB was up 0.5 per cent to $39.88.

Shares in exchange operator ASX Ltd rose 5.1 per cent after the appointment of Darren Yip, the group’s head of markets and listings, as interim chief executive.

The Australian dollar is buying 71.16 US cents at 71.58 US cents at the close on Wednesday.

ON ASX:

*S&P/ASX200 fell 21.2 points or 0.2 percent to 8665.8 points

*The broader All Ordinals index fell 28.1 points, or 0.32 percent, to 8,887.6.

One Australian dollar is traded as follows:

*71.16 US cents from 71.58 US cents at 5pm (AEST) on Wednesday

* From 114.29 JPY to 114.28 JPY

* From 61.20 euro cents to 60.98 euro cents

* 52.79 British pence, from 53.03 British pence

*122.09 New Zealand cents, from 112.08 New Zealand cents