The key takeaways from the last 24 hours
ASX retreats as geopolitical tensions stir investor caution
The Australian share market closed marginally lower on Tuesday as geopolitical risks overshadowed an initial positive start. The S&P/ASX 200 Index (ASX: XJO) dipped by 7.1 points to finish at 8541.3, despite tracking earlier gains from Wall Street. The volatility was sparked by former US President Donald Trump’s unexpected social media call for the evacuation of Tehran, raising market jitters across Asia. Investor sentiment remained cautious as seven of the 11 sectors on the ASX ended in the red, with Commonwealth Bank of Australia (ASX: CBA) and BHP Group Limited (ASX: BHP) both edging lower by 0.2 per cent and 0.4 per cent, respectively.
Gold, uranium stocks lift as safe haven demand rises
Gold-related equities saw strong performances amid growing market uncertainty. Newmont Corporation (ASX: NEM) gained 2.5 per cent and Northern Star Resources Limited (ASX: NST) climbed 1.5 per cent, mirroring a spike in global gold prices to $US3394.68 per ounce. Uranium stocks also surged as hedge funds scrambled to cover short positions, following news of a $US100 million capital raise by the Sprott Physical Uranium Trust. Gains included Deep Yellow Limited (ASX: DYL) up 5.7 per cent, Boss Energy Limited (ASX: BOE) up 3.2 per cent, Silex Systems Limited (ASX: SLX) up 3 per cent, and Paladin Energy Limited (ASX: PDN) up 4.4 per cent. Santos Limited (ASX: STO) added 0.5 per cent following ongoing speculation over a potential $30 billion takeover bid.
Wall Street slips amid Middle East tensions and weak data
Global markets were pressured by rising Middle East tensions and disappointing economic indicators. The S&P 500 Index (NYSE: SPX) dropped 0.8 per cent, the Dow Jones Industrial Average (NYSE: DJI) fell 299 points, and the Nasdaq Composite Index (NASDAQ: IXIC)declined 0.9 per cent. Investor anxiety grew following Trump’s threats of potential strikes on Iran and calls for its “unconditional surrender”. Adding to the negative sentiment, US retail sales fell 0.9 per cent in May, suggesting weakening consumer demand. Among stocks, JetBlue Airways Corporation (NASDAQ: JBLU) plummeted 7.9 per cent on weak travel demand outlook, while ExxonMobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) rose 1.3 per cent and 3.2 per cent respectively, driven by a surge in oil prices.