Australian shares flat as miners continue to drag
The Australian share market is struggling to find momentum for the second consecutive session as mining stocks continue to drift on the stock market.
The S&P/ASX200 fell 0.8 points at midday, down 0.01 percent to 8,830.2 points, while the All Ordinaries lost one point, or 0.01 percent, to 9,036 points.
The move followed Wall Street’s positive lead after US tech stocks rebounded on renewed hopes for artificial intelligence demand ahead of earnings season.
ASX-listed BT shares rose 2.7 per cent with WiseTech rising more than 11 per cent to $39.38 after controversial co-founder Richard White stepped down as chairman but retained his place on the board along with his role as chief innovation officer.
Miners continued to weigh on the local stock market, with base materials falling 1.2 percent as iron ore and copper prices held steady on reports that China’s economic growth was expected to slow from five percent to 4.5 percent in the second quarter.
Rio Tinto fell 1.5 percent to $168.57, while BHP fell 0.4 percent to $59.80.
Gold miners were also under pressure as the precious metal fell to US$4,137 ($5,951) an ounce, sending the downstream industry into a decline of more than three per cent.
Energy stocks fell 0.8 per cent as oil prices clung to recent losses on hopes of a permanent end to the US-Iran conflict and after OPEC+ countries flagged plans to increase production in August.
Banks provided a counterbalance to broader weakness, with the Commonwealth Bank beating its four major rivals by 1.3 per cent to $166.79, its highest price in weeks.
The financial sector has been under pressure in recent months as the housing market cools and signs of federal tax reforms that could further dampen real estate and stock investments.
A2 Milk fell 1.8 percent as distributors and retailers flagged a supply shortage of its Chinese-labeled infant milk formula product, according to company news.
Lynas Rare Earths lost nearly three percent after it announced plans to build a magnet factory in Malaysia with its joint venture partner, South Korea’s JS Link.
AMP chief economist Shane Oliver said sticky inflation, high interest rates and a downturn in the property market remained the biggest risks for investors heading into the new financial year.
“But with a recession unlikely, profits likely to continue rising and the Fed and RBA likely to cut rates in 2027, investment returns are likely to be moderate next year but slightly slower than the last four years,” Dr Oliver said.
“The key for investors, including super fund members, is to maintain a long-term strategy and cut through the noise.”
The Australian dollar is buying 69.56 US cents at 69.48 US cents at 5pm on Monday.
