Australian shares were little changed on Tuesday, with losses in gold miners, diversified miners, and consumer staples offsetting advances in financials and technology sectors. The benchmark S&P/ASX 200 fell roughly 0.1% in early trading, following a small loss the previous session.
Key Market Movers
Gold miners dipped 1.5% as gold prices dropped.
Northern Star Resources fell about 1.2%.
Mining stocks down 0.7%, with Rio Tinto down approximately 0.9%.
Consumer staples also impacted on the index, with Woolworths Group and Coles Group both down.
Bright spots.
Financial equities increased 0.4%, with Australia’s major banks reporting small increases.
Technology stocks rose 0.7%.
WiseTech Global’s stock rose up to 8.1% after Raelene Murphy was appointed independent chair, while co-founder Richard White stepped down as executive chair but continued as executive director and chief innovation officer.
What investors are watching.
The markets are focused on:
Developments in US-Iran negotiations affecting shipping via the Strait of Hormuz and global energy markets.
Minutes from the U.S. Federal Reserve’s June policy meeting for insights on interest rate trends.
Implications for Mining Investors
The session demonstrates how closely Australian gold producers are related to gold price swings. Even with a generally positive long-term prognosis for bullion, short-term drops in gold prices can quickly put pressure on gold mining equities. Meanwhile, technology and banking stocks continue to provide support to the broader Australian market as commodity-related sectors slump.
