Australian sharemarket: ASX slips for a third day as tech stocks fall, gold miners advance
Energy stocks struggled for a second day, with oil prices dragged lower by weakness in refined products, as traders await data expected to shed light on the extent of crude surpluses. Local oil and gas giants Woodside and Santos dropped 0.8 per cent and 1.9 per cent, respectively.
Countering those losses, gold miners lifted the mining sector as gold prices edged higher overnight ahead of the Federal Reserve’s near-certain rate cut in the US and cues on its monetary easing in 2026. Lower rates typically benefit bullion as it pays no interest, reducing the opportunity cost of owning gold versus interest-paying assets such as government bonds.
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Northern Star Resources and Evolution Mining rallied 5.1 per cent and 4.5 per cent, respectively, while Newmont Mining climbed 3.9 per cent. Gold was trading at $US4205.91 an ounce, having gained roughly 60 per cent this year, boosted by elevated central-bank purchases and strong inflows to exchange-traded funds. While it’s pulled back from a peak of above $US4380 an ounce in late October, it has found support on expectations for further monetary easing in the US.
Gold miner Ramelius jumped 5.6 per cent after announcing a share buyback of up to $250 million and saying it would double its minimum dividend to 2¢ a share, further boosting sentiment.
South 32, which owns Australia’s biggest silver mine, rose 2.1 per cent after the white metal surged, topping $US60 an ounce for the first time. The iron ore heavyweights also advanced, with BHP gaining 0.5 per cent, Fortescue rising 0.9 per cent and Rio Tinto adding 0.3 per cent.
Financial stocks, which can move the dial on the ASX due to the sheer size of the sector, were slightly lower, with CBA – the biggest stock on the local bourse – down 0.5 per cent, Westpac shedding 0.7 per cent and National Australia Bank dropping 0.1 per cent. ANZ Bank added 0.3 per cent.
On Wall Street overnight, US stocks trod water as investors wait to hear what the Fed says about where interest rates are headed in the world’s largest economy. The S&P 500 edged down by 0.1 per cent, though it remains near its all-time high. The Dow Jones Industrial Average dipped 0.4 per cent, and the Nasdaq composite added 0.1 per cent.
JPMorganChase was the heaviest weight on the market after a top executive said the bank’s expenses could rise about 9 per cent next year.
ExxonMobil was one of the strongest forces lifting the market. It climbed 2 per cent after increasing its forecast for profit over the next five years, thanks in part to strength for its fields in the Permian Basin in the United States and off Guyana’s shore.
