ASX 200 fell 0.5% on Friday as gold stocks and BHP tumbled, while oil prices surged on Middle East tensions, stoking inflation and rate fears. Materials sector down 3%.
The Australian share market closed the week lower, with the ASX 200 falling 44 points, or 0.5%, to 8796.70 on Friday. The decline was driven by selling in resources and gold miners, while a surge in oil prices stoked fresh inflation concerns.
BHP dropped 2.7% to A$57.54, weighed by strike action at Port Hedland, weaker copper production guidance, and analyst concerns about lofty valuations. Rio Tinto fell 2.4% to A$160.95. The materials sector lost nearly 3% for the session.
Gold miners took a bigger hit. Northern Star shares slid 4.1% to A$19.24. Genesis Minerals tumbled 7.2% to A$5.56. Newmont lost 3.6% to A$129.91. Regis Resources cratered 8.4% to A$5.64 after weaker-than-expected fiscal year guidance.
The sell-off in gold mirrored a drop in the metal below US$4000. Reports linked the decline to speculation that the Middle East conflict could force the Federal Reserve to raise rates, crimping demand for non-yielding assets. Higher oil prices – driven by the same geopolitical tensions – added to the inflation narrative.
Oil stocks benefited from the rally. Woodside Energy rose 3.3% to A$30.46. Ampol gained 1.7% to A$37.55.
Tech stocks struggled after the Wall Street AI sell-down. NextDC fell 2.5%, Life360 dropped 3.4%, and Megaport slumped 8.5%. Xero bucked the trend with a 0.9% gain.
Most of the big banks were lower. Commonwealth Bank dropped 0.8% to A$171.78. ANZ fell 0.4% to A$36.06. Westpac slipped 0.2% to A$36.56. National Australia Bank rose 0.2% to A$39.85.
Consumer staples offered some relief. Coles shares jumped 2.9% to A$23.21 after the company ended discussions with TPG Capital over a potential A$4 billion acquisition of pet wellness business Greencross. Coles had shed about 9% since the deal was announced in July, and investors welcomed the removal of the acquisition risk.
The selling in gold and base metals reflects a broader shift in risk appetite. The gold profile shows the metal has been under pressure as real yields rise and the dollar strengthens. BHP and Rio Tinto, meanwhile, face headwinds from weaker Chinese demand signals and company-specific operational issues.
AlphaScala’s proprietary scores rate Newmont at 60, Rio Tinto at 62, and Woodside at 67, all in the Moderate range. The scores suggest balanced risk-reward, though the near-term catalysts are tilted toward caution for the miners.
Crude oil’s rally – driven by the Middle East conflict – is a double-edged sword for the market. It boosts energy stocks but feeds inflation fears that could keep the Fed on hold or even push it toward a rate hike. The crude oil profile tracks the supply-demand dynamics that will determine how far prices can run.
For a broader view of the sector, the commodities analysis page covers the interplay between metals, energy, and geopolitics.
A heavy slate of earnings and macro data will test the market. In the US, big tech companies including Alphabet and Tesla report next week. S&P 500 earnings per share are expected to grow 23.6% in the second quarter, with semiconductors driving most of the gain. Tesla faces a short-term turnaround test, while Alphabet is forecast to grow net income by 26% year-on-year.
In Australia, the June labour force data is due Thursday. A forest of quarterly updates from resources companies will also hit the market, including South32, Yancoal, Beach Energy, Lynas Rare Earths, Santos, and Sandfire Resources. Newmont reports earnings on Friday.
Two central bank decisions land on Monday. China and the European Central Bank are both expected to hold rates steady.
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Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.