The Australian share market moved higher on Tuesday, as investors assessed conflicting data releases, one showing weakening consumer sentiment but the other indicating business conditions improving.
The benchmark S&P/ASX200 (INDEXASX: XJO) index managed to finish 14.6 points, or 0.2%, higher at 7206.9, with the broader All Ordinaries (INDEXASX: XAO) index tracking that rise in percentage terms, adding 15.1 points to 7402.9.
Five of the ASX’s 11 sectors finished lower, and six finished higher.
The mining sector lifted 0.9%, led by the heavyweights, as BHP Group Ltd (ASX: BHP) gained 53 cents, or 1.2%, to $44.19; Fortescue Metals Group Ltd (ASX: FMG) added 33 cents, or 1.7%, to $19.96; and Rio Tinto Ltd (ASX: RIO) firmed $1.71, or 1.5%, to $114.11.
BHP Group Ltd (ASX: BHP)
The iron ore producers welcomed a 4% lift in the price, to more than $US117 a tonne, as traders reacted to better-than-expected new bank lending data from China and anticipated more stimulus for the nation’s property sector.
Energy headed in a different direction, with the sector index retreating 1.4%. Woodside Energy Group Ltd (ASX: WDS) gave up 57 cents, or 1.5% to $37.69; Santos Ltd (ASX: STO) slipped 10 cents, or 1.3%, to $7.72, Beach Energy Ltd (ASX: BPT) walked back 5 cents, or 3%, to $1.595; and refinery owner Viva Energy Group Ltd (ASX: VEA) lost 23 cents, or 7.3%, to $2.93, as the world’s biggest energy trader, Dutch company Vitol, sold $714 million shares in the company, or 16.1% of the equity.
Santos Ltd (ASX: STO)
Gold and almonds: A surprise commodity pair
Gold producers also rose after RBC Capital Markets lifted its forecast for the gold price, adding to increasing optimism among brokers for the yellow metal.
RBC expects gold to reach US$1,960 an ounce by December next year, which would represent a 16% rise from its previous forecast.
Gold currently trades at $US1,921.3. Investors liked the news, selectively, with Ramelius Resources Ltd (ASX: RMS) spiking 5 cents, or 3.9%, to $1.32; Silver Lake Resources Ltd (ASX: SLR) adding 1.5 cents, or 1.6%, to 95 cents; Northern Star Resources Ltd (ASX: NST) lifting 10 cents, or 0.9%, to $11.28, and De Grey Mining Limited (ASX: DEG) accruing 2.5 cents, or 1.9%, to $1.325.
On the industrial screens, the major banks were largely becalmed, with National Australia Bank Ltd. (ASX: NAB) up 6 cents to $29.11; Commonwealth Bank of Australia (ASX: CBA) 7 cents stronger at $102.11; ANZ Group Holdings Ltd (ASX: ANZ) one cent weaker at $25.27; and Westpac Banking Corp (ASX: WBC) one cent higher, at $21.56.
Almond grower Select Harvests Ltd (ASX: SHV) was a standout, surging 42 cents, or 10.4%, to $4.45, after the company released an upbeat 2024 crop and market update.
Select Harvests Ltd (ASX: SHV)
Tech heavyweights lead US indices lower
In the US, markets weakened ahead of the US inflation report due to be released tonight.
The blue-chip Dow Jones Industrial Average (INDEXDJX: .DJI) eased 17.73 points, or 0.05%, to 34,645.99, while the broader S&P 500 (INDEXSP: .INX) index slid 25.56 points, or 0.6%, to 4,461.90, and the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) index retreated 144.28 points, or 1%, to 13,773.61, as some tech luminaries came under pressure.
Oracle suffered its worst day since 2002, down 13.5% after missing consensus revenue forecasts for the first quarter, while Apple Inc (NASDAQ: AAPL) lost 1.7% as it announced design changes to the iPhone 15: the stock is still battling concerns of a possible China shutout.
Apple Inc (NASDAQ: AAPL)
In the bond market, the US 10-year yield leased 2.4 basis points, to 4.264%, while the 2-year yield was unchanged at an inverted 5.02%.
Gold softened US$8.25, or 0.4%, to US$1,913.39; the global benchmark Brent crude oil grade advanced US$1.42, or 1.6%, to US$92.06 a barrel, and US West Texas Intermediate crude gave up 6 cents to US$88.78 a barrel.
The Australian dollar is buying 64.27 US cents this morning, where it was at Tuesday’s ASX close.
