Australia’s share market is struggling to find momentum for a second straight session as mining stocks continue to drag on the exchange.
The S&P/ASX200 eased by 0.8 points by midday, down 0.01 per cent, to 8,830.2, as the broader All Ordinaries lost one point, or 0.01 per cent, to 9,036.
The move followed a positive lead from Wall Street overnight after US tech stocks rallied on renewed hopes around artificial intelligence demand ahead of earnings season.
ASX-listed IT stocks charged 2.7 per cent higher, led by a more than 11 per cent surge in WiseTech to $39.38, after controversial co-founder Richard White stepped down as executive chair but retained a spot on the board along with his role as chief innovation officer.
Miners continued to weigh on the local bourse, with basic materials down 1.2 per cent as iron ore and copper prices stagnated on reports China’s economic growth is expected to slow from five per cent to 4.5 per cent in the second quarter.
Rio Tinto tumbled 1.5 per cent to $168.57, while BHP shed 0.4 per cent to $59.80.
Gold miners were also under pressure as the precious metal eased to $US4,137 ($A5,951) an ounce, dragging the sub-industry more than three per cent lower.
Energy stocks fell 0.8 per cent, as oil prices hung onto recent losses amid hopes of a permanent end to the US-Iran conflict and after OPEC+ nations flagged plans to increase output in August.
Banks offered a ballast to broader weakness as Commonwealth Bank led its big four competitors up with a 1.3 per cent advance to $166.79, its highest price in weeks.
The financial sector has been under pressure in recent months amid a cooling housing market and flagged federal tax reforms that could further dampen property and stock investment.
In company news, A2 Milk slumped 1.8 per cent as it flagged supply shortfalls for its China label infant milk formula product at distributors and retailers.
Lynas Rare Earths slumped almost three per cent as it announced plans to build a magnet factory in Malaysia with its joint venture partner, South Korea’s JS Link.
Looking to the new financial year, AMP chief economist Shane Oliver said sticky inflation, higher interest rates and the property downturn remained the biggest risks to investors.
“However, with recession looking unlikely, profits likely to keep rising and the Fed and RBA likely to be cutting rates in 2027, investment returns are likely to be reasonable over the year ahead but maybe a bit slower than those of the last four years,” Dr Oliver said.
“The key for investors including super fund members is to maintain a long-term strategy and turn down the noise.”
The Australian dollar is buying 69.56 US cents, up from 69.48 US cents on Monday at 5pm.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
