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Aussie shares struggled for traction as softening commodity prices weighed on miners and investors kept a wary eye on a Covid outbreak in Melbourne and volatility in cryptocurrency markets.
The S&P/ASX 200 rose as much as 32 points before reversing to a mid-session loss of three points or 0.05 per cent.
CSL, Wesfarmers and the big four banks advanced. The mining majors declined with the prices of iron ore and base metals.
What’s driving the market
Mixed leads from the US and a weekend collapse in digital tokens contributed to a a stuttering morning. The market hit its low after the Victorian government reported two “likely positive cases” in the northern suburbs of Melbourne. The advance briefly regained momentum as US futures responded to a recovery in cryptos.
S&P 500 futures rose nine points or 0.22 per cent as Bitcoin rebounded. The largest of the cryptos was lately up 3.82 per cent at US$35,081 after falling as much as 13 per cent to US$31,228 overnight.
A weekend of volatility in digital coins followed a clampdown by the Chinese government and an announcement last week that US regulators will require large transfers to be reported to the Internal Revenue Service. Wild swings over the last week have some commentators questioning the value of digital currencies as long-term investments. Bitcoin has lost almost half its value since last month’s peak.
“Many point to Bitcoin’s volatility as untenable,” RBC Capital Markets’ Amy Wu Silverman wrote. “Indeed, Bitcoin makes severe and dizzying swings.”
The Nasdaq Composite dropped 0.48 per cent on Friday as the crypto ructions rekindled. The S&P 500 eased 0.08 per cent. Strong manufacturing data helped lift the Dow 0.36 per cent.
Going up
Embattled data analytics firm Nuix rose 3.12 per cent after announcing boardroom changes in response to market feedback. The company said it will appoint additional independent directors and set up an independent sub-committee to work with external advisors on risk management. The firm’s shares hit an all-time low last week.
Freedom Foods rallied 4.65 per cent after raising $265 million to pay down debt and help recapitalise the company. The cereal and snacks firm was hit by class actions last year and this year alleging breaches of the Corporations Act and consumer law.
Z1P Co‘s global expansion plans accelerated with news the company will acquire the remaining shares in European BNPL provider Twisto Payments and UAE-based Spotii Holdings. The transactions will cost around $160 million. Shares in the company rose 0.78 per cent.
Healthcare giant CSL climbed 0.61 per cent to a three-month high. Wesfarmers added 0.55 per cent. CBA rose 0.62 per cent, ANZ 0.5 per cent, NAB 0.57 per cent and Westpac 1.01 per cent.
Gold miner Newcrest put on 0.72 per cent as the yellow metal resumed its ascent following Friday’s pause in a six-session rally. Gold rallied $9.40 or 0.5 per cent this morning to US$1,886.10 an ounce. Gold Road Resources added 4.45 per cent, Ramelius 3.18 per cent and Silver Lake Resources 3.15 per cent.
Online retailer Kogan bounced 8.68 per cent from Friday’s 12-month low.
Going down
A retreat in iron ore towards US$200 a tonne sent the big three ore miners lower. Fortescue Metals slid 4.04 per cent, Rio Tinto 2.27 per cent and BHP 2.14 per cent. Spot ore slumped 5.1 per cent to US$200.10 on Friday.
Aristocrat Leisure faded 0.74 per cent after reporting an 11.8 per cent rebound in half-year profits as digital revenue accelerated and casinos, clubs and pubs reopened for business. Unfavourable currency movements helped knock group revenue down 1 per cent to $2.2 billion. On a constant currency basis, revenue increased by 10.7 per cent.
Northern Star dipped 0.98 per cent after announcing Michael Chaney will take over as non-executive chair on July 1. Chaney is a former chair of NAB and Woodside Petroleum and current chair of Wesfarmers.
Agribusiness Elders fell 2.84 per cent as it traded without the right to a dividend.
The heaviest falls on the wider market were EML Payments -6.23 per cent, Oz Minerals -5.06 per cent and AMP -4.44 per cent.
Other markets
A downbeat session on Asian markets saw the Asia Dow shed 0.15 per cent, China’s Shanghai Composite 0.33 per cent and Hong Kong’s Hang Seng 0.82 per cent. Japan’s Nikkei gained 0.21 per cent.
Oil prices rose as a storm developed in the Gulf of Mexico. Brent crude climbed 53 cents or 0.8 per cent to US$66.97 a barrel.
The dollar was broadly steady at 77.24 US cents.
