Australian Market Modestly Lower

Australian shares are trading modestly lower on Wednesday, reversing the gains in the previous session, with the benchmark S&P/ASX 200 falling to near the 9,400 level, following the broadly negative cues from Wall Street overnight, with weakness in iron ore miners, financial and technology stocks partially offset by gains in gold miner stocks.

The benchmark S&P/ASX 200 Index is losing 34.20 points or 0.37 percent to 9,216.40, after hitting a low of 9,198.90 earlier. The broader All Ordinaries Index is down 34.30 points or 0.36 percent to 9,409.40. Australian stocks ended modestly higher on Tuesday.

Among major miners, BHP Group and Rio Tinto are edging down 0.2 to 0.4 percent each, while Fortescue and Mineral Resources are losing almost 1 percent each.

Oil stocks are mixed. Origin Energy is gaining almost 1 percent and Beach energy is adding almost 2 percent, while Woodside Energy and Santos are edging down 0.5 percent each.

In the tech space, Afterpay owner Block is losing almost 1 percent, while WiseTech Global, Appen, Zip and Xero are declining more than 1 percent each.

Among the big four banks, ANZ Banking Commonwealth Bank are losing almost 1 percent each, while Westpac and National Australia bank are edging down 0.1 to 0.5 percent each.

Among gold miners, Evolution Mining and Northern Star Resources are edging up 0.1 to 0.5 percent each, while Newmont is gaining almost 1 percent and Resolute Mining is adding more than 1 percent. Genesis Minerals is edging down 0.1 percent.

In other news, shares in Seek are tumbling more than 14 percent after a jump in profit for the online job advertiser was marred by a $200 million write-down of software-as-a-service investments in its Seek Growth Fund in its full-year result.

Shares in Bravura Solutions are surging almost 15 percent after the financial technology company posted a nearly 50 percent surge in profits in its full-year results.

In the currency market, the Aussie dollar is trading at $0.707 on Wednesday.

On Wall Street, stocks moved mostly lower over the course of the trading day on Tuesday after showing a lack of direction early in the session. The major averages all moved to the downside, adding to the modest losses posted in the previous session.

The major averages finished the day off their lows of the session but still in the red. The Nasdaq slid 159.91 points or 0.6 percent to 26,445.45, the S&P 500 fell 24.91 points or 0.3 percent to 7,728.20 and the Dow declined 184.13 points or 0.3 percent to 53,791.85.

Meanwhile, the major European markets ended the day mixed. While the German DAX Index rose by 0.3 percent, the French CAC 40 Index edged down by 0.1 percent and the U.K.’s FTSE 100 Index slipped by 0.2 percent.

Crude oil prices surged on Tuesday, extending the gains from the two previous sessions as the U.S.-Iran stalemate continues, diminishing hopes for an early reopening of the Strait of Hormuz. West Texas Intermediate crude for September delivery was up $0.89 or 1.08 percent at $83.02 per barrel.

Market Analysis