The key takeaways from the last 24 hours
ASX steadies despite mining drag
The Australian sharemarket ended marginally lower on Wednesday, with the S&P/ASX 200 Index (ASX: XJO) down 0.1 per cent to close at 8531.2. The modest dip came despite eight of the eleven industry sectors posting gains, as a sharp retreat in the materials sector weighed heavily on the broader market. The key driver of this decline was renewed pressure on iron ore prices, which slipped below $US93 a tonne in Singapore.
Iron ore slump hits major miners
Iron ore-exposed stocks bore the brunt of the market’s retreat, with BHP Group Limited (ASX: BHP) falling 1.2 per cent to $36.86, Fortescue Metals Group Limited (ASX: FMG) sliding 4 per cent to $15.03, and Mineral Resources Limited (ASX: MIN) tumbling 4.6 per cent to $22.59. Citi downgraded its 12-month forecast for iron ore prices to $US90 per tonne, adding further pressure. Gold miners also declined despite global tensions, with Northern Star Resources Limited (ASX: NST) dropping 2 per cent to $20.58 and Evolution Mining Limited (ASX: EVN)falling 3.6 per cent to $8.15. In contrast, uranium stocks rallied, with Boss Energy Limited (ASX: BOE) gaining 4.3 per cent after strong production results, and Deep Yellow Limited (ASX: DYL) advancing 3.9 per cent on speculation of higher uranium prices.
Global jitters amid Fed hold and Middle East unrest
On Wall Street, markets were mixed following the US Federal Reserve’s decision to leave interest rates unchanged. The S&P 500 Index (NYSE: SPX) dipped slightly, the Dow Jones Industrial Average (NYSE: DJI) fell 44 points, while the Nasdaq Composite Index (NASDAQ: IXIC) inched up 0.1 per cent. Fed Chair Jerome Powell maintained a cautious tone, highlighting uncertainty around inflation and growth, while signaling two potential rate cuts in 2025. Rising geopolitical risks, particularly from escalating tensions between Israel and Iran, added to investor unease and pushed oil prices higher. Meanwhile, payment stocks Visa Inc (NYSE: V), Mastercard Inc (NYSE: MA), and PayPal Holdings Inc (NASDAQ: PYPL) each dropped over 4 per cent following the passage of the US Congress’s stablecoins act.
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