Closing Bell 25th September: Navigating Through Surging Oil Prices and Falling Iron Ore Futures

The ASX/S&P 200 is experiencing a downturn in the morning and afternoon, extending the equity sell-off into a second week, primarily due to the struggles of materials companies and banks. However, it was able to make a recovery into the close. Major iron ore miners, including BHP, Fortescue Metals, and Rio Tinto, are facing declines between 0.7% and 1.7%. This downturn precedes Australia’s headline CPI figures release, which could potentially highlight the challenges of managing inflation in the country. Meanwhile, Qantas is grappling with challenges, facing an additional $80 million in customer improvement costs and an anticipated $200 million impact from escalating fuel costs, causing its stocks to trade near a one-year low. Despite these challenges, RBC Capital Markets maintains a neutral rating on Qantas, expressing confidence in the airline’s resilience. In contrast, stocks like health tech developer Polynovo are witnessing a surge, and others like Allkem and Synlait are experiencing varied movements.