Australian shares experienced a downturn on Tuesday, primarily driven by a significant sell-off in the mining sector. The benchmark S&P/ASX 200 Index closed 0.5% lower, with eight of its eleven sectors finishing in negative territory. The materials sector bore the brunt of the decline, shedding 1.9%, as mining giants like BHP and Fortescue Metals encountered selling pressure. The latter plummeted 10.2% following a substantial block trade of its shares.
Contributing to the market’s weakness was a cautious investor sentiment ahead of a data-heavy week on the global economic calendar. Additionally, the decline in oil prices and the US government’s decision to replenish its strategic petroleum reserve weighed on energy stocks.
Despite a positive close on Wall Street, driven by gains in technology stocks, local investors remained circumspect due to upcoming policy decisions from major central banks and the release of Australia’s quarterly inflation report.
Futures
The Dow Jones futures are pointing to a fall of 5 points.
The S&P 500 futures are pointing to a fall of 1.25 points.
The Nasdaq futures are pointing to a fall of 12.5 points.
The SPI futures are down 43 points.
Best and worst performers
The best-performing sector was Consumer Discretionary, up 0.22 per cent. The worst-performing sector was Materials, down 1.93 per cent.
The best-performing large cap was ResMed (ASX:RMD), closing 3.1 per cent higher at $31.55. It was followed by shares in Qantas Airways (ASX:QAN) and Medibank Private (ASX:MPL).
The worst-performing large cap was Fortescue (ASX:FMG), closing 10.17 per cent lower at $18.28. It was followed by shares in Pilbara Minerals (ASX:PLS) and Ramsay Health Care (ASX:RHC).
Asian markets
Japan’s Nikkei has gained 0.15 per cent.
Hong Kong’s Hang Seng has lost 1.35 per cent.
China’s Shanghai Composite has gained 0.07 per cent.
Commodities and the dollar
Gold is trading at US$2,386.60 an ounce.
Iron ore is 0.5 per cent lower at US$101.45 a tonne.
Iron ore futures are pointing to a 2.9 per cent fall.
Light crude is trading $0.39 lower at US$75.42 a barrel.
One Australian dollar is buying 65.54 US cents.