Australian Market Modestly Lower

The Australian stock market is modestly lower on Friday, extending the slight losses in the previous session, with the benchmark S&P/ASX 200 just below the 7,400 level, despite the broadly positive cues overnight from Wall Street, led by weakness in energy and mining stocks as commodity prices slipped.

Traders are also cautious as the country is gradually reopen its borders and after lifting lockdown restrictions, particularly in Victoria where COVID-19 cases are still high.

Victoria reported 1,656 new locally acquired cases and ten deaths on Thursday. NSW has reported 268 new local cases of COVID-19 and two deaths.

The benchmark S&P/ASX 200 Index is losing 36.40 points or 0.49 percent to 7,394.00, after hitting a low of 7,388.70 and a high of 7,447.00 earlier. The broader All Ordinaries Index is down 29.20 points or 0.38 percent to 7,710.50. Australian markets ended slightly lower on Thursday.

Among major miners, Rio Tinto is losing more than 2 percent and Fortescue Metals is edging down 0.2 percent, while Mineral Resources is gaining almost 2 percent and OZ Minerals is adding almost 3 percent. BHP Group is flat.

Oil stocks are mostly lower. Oil Search is losing almost 1 percent and Origin Energy is declining more than 1 percent, while Beach energy is gaining almost 2 percent. Woodside Petroleum and Santos are flat.

Among tech stocks, Xero is losing almost 1 percent and WiseTech Global is declining more than 1 percent, while Afterpay is gaining more than 1 percent. Appen is flat.

Among the big four banks, Westpac, ANZ Banking and Commonwealth Bank is losing almost 1 percent each, while National Australia Bank is declining more than 1 percent.

Gold miners are mixed. Resolute Mining is edging up 0.5 percent, while Northern Star Resources, Newcrest Mining and Gold Road Resources are losing more than 1 percent each. Evolution Mining is declining almost 1 percent.

Shares in PointsBet tanked is losing more than 7 percent after the online bookmaker revealed in a quarterly update that its market share slid in all seven US states in the US sports betting gold rush.

Casino operator Crown Resorts settled a class action brought against it by angry shareholders for $125 million. The stock is down more than 1 percent.

In economic news, the total value of retail sales in Australia was up a seasonally adjusted 1.3 percent on month in September, the Australian Bureau of Statistics or ABS said on Friday – coming in at A$29.669 billion. That beat forecasts for an increase of 1.0 percent following the 1.7 percent decline in August.

The ABS also said final demand producer prices in Australia were up 1.1 percent on quarter in the third quarter of 2021, up from 0.7 percent on quarter in the previous three months. On a yearly basis, producer prices climbed 2.9 percent, up from 2.2 percent in the three months prior.

Further, private sector credit in Australia was up 0.6 percent on month in September, the Reserve Bank of Australia said on Friday – matching expectations and unchanged from the August reading. On a yearly basis, credit jumped 5.3 percent – accelerating from 4.7 percent in the previous month.

In the currency market, the Aussie dollar is trading at $0.753 on Friday.

On Wall Street, stocks moved mostly higher during trading on Thursday, offsetting the pullback seen late in the previous session. With the upward move on the day, the tech-heavy Nasdaq and the S&P 500 reached new record closing highs.

The major averages saw further upside going into the close of trading. The Dow climbed 239.79 points or 0.7 percent to 35,730.48, the Nasdaq surged 212.28 points or 1.4 percent to 15,448.12 and the S&P 500 jumped 44.74 points or 1 percent to 4,596.42.

Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index advanced by 0.8 percent, the U.K.’s FTSE 100 Index and the German DAX Index both edged down by 0.1 percent.

Crude oil futures settled marginally higher Thursday, recovering from an early setback as prices were weighed down by data showing an increase in U.S. crude inventories and the prospect of Iranian crude entering the market. West Texas Intermediate crude oil futures for December ended up by $0.15 or 0.2 percent at $82.81 a barrel.

Market Analysis