What's Affecting Markets Today
Asian markets mixed
Asia-Pacific markets opened mixed on Monday as investors awaited key economic data from the U.S. and China later this week, while French election results indicated a hung parliament. France’s left-wing New Popular Front coalition unexpectedly thwarted a far-right advance, securing the largest number of seats but missing an absolute majority.
Investors are keenly watching the U.S. consumer price index due Thursday to gauge the Federal Reserve’s interest rate trajectory, while China’s inflation data on Wednesday will provide insights into the country’s economic recovery. Central bank decisions from South Korea, New Zealand, and Malaysia are also anticipated this week, though no changes are expected according to a Reuters poll.
Japan’s Nikkei 225 fell slightly, with the Topix down 0.36%, as real wages declined for the 26th consecutive month. South Korea’s Kospi traded near the flatline, while the Kosdaq rose 0.86%. Samsung Electronics shares increased 0.46% despite a planned three-day strike by its largest union. The Hang Seng index dropped 0.46%, and the CSI300 slid 0.3%, extending its losses to a fifth day.
ASX Stocks
ASX 200 - 7,759.9 (-0.8%)
Key Highlights:
A sell-off in iron ore miners is dragging the Australian sharemarket lower at the start of the week. The S&P/ASX 200 index is down 41 points, or 0.5%, at 7781.6 points as of 2pm.
Miners are the biggest weight on the index due to a drop in iron ore prices over the weekend. On Friday, iron ore futures in Singapore fell 3% to $US110.25 per tonne amid concerns about Chinese demand and oversupply. Today, prices have declined further by 1.5% to $US108.80 per tonne. BHP, Rio Tinto, and Fortescue are all down around 1.8%.
Energy stocks are also under pressure, down 1.3%, with Woodside and Santos each slipping 1.4%.
Conversely, gold miners are performing well, boosted by rising gold prices and strong quarterly production figures from Red 5, Ramelius Resources, and Regis Resources. Rex Minerals has surged 62% to 44.5¢ after a buyout deal by MACH Metals Australia. Ramelius Resources is up 5.4% to $1.87, nearing its upgraded annual production guidance.
Leaders
RED – RED 5 Ltd (+8.00%)
ZIP – ZIP Co Ltd (+5.91%)
RSG – Resolute Mining Ltd (+4.17%)
EMR – Emerald Resources NL (+3.68%)
MGH – Maas Group Holdings Ltd (+3.51%)
Laggards
CUV – Clinuvel Pharmaceuticals Ltd (-10.24%)
VUL – Vulcan Energy Resources Ltd (-4.70%)
IGO – IGO Ltd (-4.05%)
LTM – Arcadium Lithium Plc (-3.88%)
WA1 – WA1 Resources Ltd (-3.74%)
