AU Morning Wrap: Australian Stocks Open Lower on Mining Sector Weakness; Incitec Pivot Drops 4%
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• S&P 500, Nasdaq post new record highs
• Australian stocks open lower on mining sector weakness; Incitec Pivot drops 4%
• Stocks to watch: Incitec Pivot, Bell Financial
Wall Street Summary
The S&P 500 and Nasdaq reached new record highs on Tuesday after Federal Reserve Chair Jerome Powell warned about the risks of keeping interest rates high for too long. Powell will continue testimony this week before Congress on Wednesday before the House Financial Services Committee.
The $Nasdaq Composite Index (.IXIC.US)$ added 0.14% to close at 18429.29, and the $S&P 500 Index (.SPX.US)$ gained 0.07%. Both indexes closed at fresh reocrd highs. The $Dow Jones Industrial Average (.DJI.US)$ fell 0.13%, ending at 39291.97.
AU Market Watch
Australian equities opened lower, eroding some of the previous session's widespread gains.
The leading $S&P/ASX 200 (.XJO.AU)$ declined by 0.6 percent, shedding 45.9 points to reach 7783.8 at the opening bell, with the majority of sectors—ten out of eleven—experiencing losses.
Leading the downturn, the materials sector suffered the most, influenced by a dip in iron ore prices. Futures for Singapore iron ore decreased by 0.8 percent to $US108.50 per tonne. In tandem, mining giant $BHP Group Ltd (BHP.AU)$ saw its shares drop by 0.8 percent.
ASX 200 futures are currently trading at 7,763.5, down by 7.5 points, indicating a 0.10% decrease.
Commodity
U.S. Crude Oil Futures Decline Despite Report of Significant Stock Reduction
In the face of a report from the American Petroleum Institute (API) indicating a substantial decrease in domestic crude inventories, U.S. crude oil futures experienced a downturn in post-settlement trading on Tuesday. This unexpected dip in stocks suggests an uptick in summer demand.
West Texas Intermediate (WTI) crude futures, the benchmark for U.S. oil, were valued at $80.94 per barrel following the API's announcement, after having closed down by 1.1% at $81.41 per barrel.
The latest data reveals a reduction in U.S. crude stocks by approximately 1.9 million barrels for the week ending July 5. This figure contrasts with the prior week's substantial decrease of 9.2 million barrels as documented by the API. Market analysts had anticipated a smaller decline of 250,000 barrels.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $57,812, up by 2.08% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,061, up by 1.41% in the past 24 hours.
Stocks to Watch
Shares of $Incitec Pivot Ltd (IPL.AU)$ experienced a 4.5% decline as the company concluded its discussions with PT Pupuk Kalimantan Timur of Indonesia regarding the divestment of its fertilizer operations. The firm stated in an announcement that it would persist in overseeing its explosives division, Dyno Nobel, and its fertilizer segment as distinct entities. In the short term, Incitec Pivot has identified a $900 million share repurchase program as a strategic priority.
$Bell Financial Group Ltd (BFG.AU)$ enjoyed a 1.9% uplift in its share price after publicizing its forecast for a significant upturn in its pre-tax profits. The financial services firm anticipates a 47% increase, amounting to $23.8 million, for the first half of the fiscal year.
Economic Calendar (AEST)
1:30 am: China Inflation Rate (Jun)
12:00 am: US Fed Chair Powell Speech
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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