ASX 200 falls: What’s weighing on market on the first trading day of new financial year?

Summary

  • The Australian share market opened flat on Thursday after major US indices closed out the quarter at near record highs.

  • By 10:30 AM (AEST), the benchmark was trading 0.034% lower, at 7,310.50.

  • On Wall Street, the Dow Jones rose 0.6%, while the S&P 500 was up 0.13%. The NASDAQ Composite dropped 0.17% in overnight trade. 

The Australian share market opened flat on Thursday after major US indices closed out the quarter at near record highs following a June rally. The ASX 200 opened the new financial year just 1.70 points higher, at 7314.70. The index rose 0.16% to close at 7,313 points on Wednesday.

Soon, the benchmark slipped into the negative zone and by 10:30 AM (AEST), the benchmark was trading 0.034% lower, at 7,310.50.

Meanwhile, on Wall Street, the Dow Jones rose 0.6%, while the S&P 500 was up 0.13%. The NASDAQ Composite dropped 0.17% in the overnight trade.

Source: ©Miflippo  | Megapixl.com

READ MORE: 4 ASX-listed stocks with dividend yield over 5%

What has happened so far?

Consumer Staples and Financials were down 0.4%. Utilities and Industrials were trading nearly 0.5% higher.

Lendlease led the losses, down by 5.9%. Metcash was down by 3.4%.

Adbri and Mesoblast was up over 4%.

The All Ordinaries Gold was trading 1.527% higher.

The broader All Ordinaries index was down 0.071%, while the ASX 200 VIX Index was down 10.972%.

Source: ASX website; as of 10:30 AM (AEST)

Bonds and dollar

The Australian 10-year bond yield was trading 1.52% lower, at 1.490. The benchmark 10-year US bond yield was last down 3.2 basis points, at 1.4477%. The yield on 30-year bonds was last traded at 2.0701%.

The Australian dollar was trading 0.05% lower, at 0.7494.

Commodity update

The Brent crude oil futures contract for August closed the session 0.5% up, at US$75.13 per barrel. US West Texas Intermediate (WTI) crude oil futures settled 0.7% up, at US$73.47 per barrel.

While Brent oil futures were trading 0.13% higher, at US$74.72, WTI futures were trading 0.12% higher, at US$73.55.

On Wednesday, gold nudged up but was headed for its largest monthly fall since November 2016. The US gold futures closed 0.5% up, at US$1,771.60 an ounce.

Source: ©Ymgerman    | Megapixl.com

Gold futures were trading 0.17% lower, at US$1,768.40.

Metals’ update

The most actively traded iron ore futures for the September month delivery on China's DCE ended 0.7% lower at 1,165 yuan (US$180.50) per tonne.

On Wednesday, copper recorded its biggest monthly fall since March 2020. Benchmark copper on the London Metal Exchange (LME) was up 0.8%, to US$9,410 per tonne at 1715 GMT, but down more than 8% in June 2021.

Copper futures were trading 0.09% lower, at US$4.2880.

READ MORE: Which stock has paid the highest dividend in 2021?

Newsmakers

Lendlease (ASX:LLC) has given a profit expectation for FY2020-21, indicating statutory profit after tax of between AU$200 million and AU$320 million.

Mesoblast (ASX:MSB) announced that it had requested a meeting with the US Food and Drug Administration about a drug to address back pain.

The Early Trades || What’s Weighing On Market On The First Trading Day Of New Financial Year?

Cooper Energy (ASX:COE) has downgraded its production guidance for the 2021 financial year to 2.6 million barrels of oil equivalent. The company blamed interruptions to operations during May and June.

Seek (ASX:SEK) said that it would update the market at its full-year results next month on a review targeted.

Pacific Hydro has awarded Worley (ASX:WOR) two operations and maintenance services contracts.

READ MORE: Five exciting ASX stocks you might not want to miss

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