FX.co ★ Australian Market Modestly Lower

The Australian stock market experienced a modest decline on Tuesday after an initial surge, relinquishing some of the gains made in the previous session. This movement followed mixed signals from Wall Street overnight. The S&P/ASX 200 index stayed below the 7,900 mark, as weakness in iron ore miners and energy stocks countered gains in the technology sector.

Specifically, the S&P/ASX 200 Index dropped 16.20 points or 0.21% to reach 7,847.50, after hitting a high of 7,870.20 and a low of 7,844.40 earlier in the session. Meanwhile, the broader All Ordinaries Index fell by 12.70 points or 0.16% to 8,119.40, following a significant rise in Australian stocks on Monday.

In the mining sector, Rio Tinto decreased nearly 1%, Fortescue Metals edged down 0.4%, and Mineral Resources declined by more than 1%, while BHP Group saw a slight increase of 0.5%.

The oil sector showed mixed results. Origin Energy edged up by 0.2%, whereas Beach Energy fell nearly 1%, and Santos decreased by 0.1%. Woodside Energy remained flat.

Tech stocks fared better, with Afterpay’s owner Block and WiseTech Global each gaining more than 1%. Xero increased by nearly 1%, while Zip fell by more than 1%, and Appen remained unchanged.

Gold miners displayed mixed performance, with Gold Road Resources and Resolute Mining each edging up by 0.3% to 0.4%, whereas Newmont and Northern Star Resources dipped by 0.1% to 0.3%. Evolution Mining gained nearly 1%.

Among the major banks, Commonwealth Bank, National Australia Bank, and Westpac experienced slight declines ranging from 0.2% to 0.3%, while ANZ Banking edged up by 0.3%.

In other developments, Sonic Healthcare shares plummeted more than 10% following a profit warning influenced by inflationary pressures and currency exchange issues. James Hardie shares dropped nearly 11% due to lower-than-expected earnings guidance for fiscal 2025. Star Entertainment's shares slipped over 5% after Hard Rock International denied any association with a recent proposal despite Star stating it had received an approach from a related entity.

On the monetary policy front, the Reserve Bank of Australia (RBA) released the minutes from its May 7 meeting. The RBA maintained its benchmark interest rates, keeping the cash rate target at 4.35% and the interest rate on Exchange Settlement balances at 4.25%.

In the currency market, the Australian dollar traded at $0.667 on Tuesday.

Meanwhile, on Wall Street, stocks moved in varying directions throughout Monday's trading session. The tech-heavy Nasdaq continued its strong performance from the previous week, closing at a new high, while the Dow Jones Industrial Average fell after surpassing 40,000 for the first time last Friday.

The Nasdaq finished up by 108.91 points or 0.7%, reaching 16,794.87. The S&P 500 rose by 4.86 points or 0.1% to 5,308.13, while the Dow fell by 196.82 points or 0.5% to 39,806.77.

In Europe, significant markets showed positive movement. The UK's FTSE 100 Index inched up by 0.1%, and both the German DAX Index and the French CAC 40 Index increased by 0.4%.

Crude oil prices fell on Monday due to concerns that the Federal Reserve may sustain higher interest rates for an extended period. West Texas Intermediate Crude oil futures dropped to around $79.80, down $0.26 from the previous close.