AUS
NZ
UK
CA
USA
IND
Highlights
- ASX falls as Middle East tensions rise, energy stocks gain.
- Oil prices surge, boosting companies like Woodside and Santos.
- Mining sector declines as recent stimulus-driven gains fade.
The Australian share market is experiencing a downturn this afternoon, with the S&P/ASX index dropping by 0.9% to 8133. Ten out of 11 sectors are seeing losses, with mining stocks leading the declines. The mining sector is down 1.5%, offsetting gains made by energy giants like Woodside Energy (ASX:WDS) and Santos (ASX:STO). The decline comes as concerns rise over potential retaliation by Israel against Iran, targeting the latter’s oil assets.
Overnight, oil took center stage in global markets following comments from U.S. President Joe Biden, who indicated that discussions were underway regarding a possible Israeli attack on Iranian oil infrastructure. This news sent oil prices soaring, with both Brent crude and West Texas Intermediate reaching their highest intraday prices in about a month. Futures contracts for both benchmarks closed over 5% higher.
Oil prices have continued to rise during trading in Asia today, providing a boost to energy stocks on the ASX, which are up by 2%. Woodside Energy has gained 2.8%, while Santos is up by 2.1%, benefiting from the surge in global oil prices.
However, the broader market is weighed down by losses in the mining sector, which has seen a 2.1% decline. Iron ore heavyweight BHP (ASX:BHP) is down 2.5%, with shares trading at $44.24. This dip follows last week’s rally in the sector, sparked by stimulus measures in China, which now appear to be losing momentum. Iron ore prices in Singapore have slipped by 1%, dropping below $US108 per tonne after a recent rally pushed prices almost $US20 higher.
In other notable market movements, gaming company Light & Wonder has seen its shares jump by more than 7%. The company announced plans to move forward with its revamped “Dragon Train” game, despite a previous intellectual property dispute with Aristocrat Technologies earlier this year.
Meanwhile, Woodside Energy reported a fatal incident at its Beaumont Clean Ammonia site in Texas. While details of the event remain unclear, the company has confirmed that operations at the site have been suspended as an investigation gets underway.
In other sectors, Regal Partners (ASX:RPL) has surpassed $17 billion in funds under management as its discussions for a potential takeover of Platinum Asset Management progress. Regal’s shares have risen by 0.3%, trading at $3.49.
In the tech sector, Infratil (ASX:IFT) saw its CDC data center business add $287 million in value over the past three months. This increase comes as excitement continues to build in the data center space, following a record $24 billion buyout of competitor AirTrunk. Infratil’s 48% stake in CDC is now valued at $4.8 billion, up from $4.15 billion just three months ago. Despite this positive growth, Infratil shares edged down by 0.5% to $11.02.
As the ASX continues to react to geopolitical tensions and market developments, energy stocks are providing some stability, even as other sectors like mining face declines. The market remains focused on global events and their potential impact on various industries.
