Source : THE AGE NEWS
Technology stocks are leading the Australian sharemarket higher on Tuesday while Wall Street steadied overnight.
The S&P/ASX 200 was up 28.1 points or 0.3 per cent, to 8898.20 just before 1pm AEDT, with nine of 11 industry sectors in positive territory.
Mining stocks are mixed after a strong start to the session. BHP and Rio Tinto each jumped 1.3 per cent but Fortescue fell into the red to be 0.5 per cent lower. Among gold miners, Northern Star added 0.5 per cent while Evolution Mining lost 0.9 per cent. The price of silver surged by more than 7 per cent overnight, sending South32 up 1.9 per cent.
Financial stocks are mixed, with National Australia Bank climbing 0.4 per cent, but Commonwealth Bank gave up 0.4 per cent, Westpac fell by 1.5 per cent and ANZ Bank lost 1 per cent. Macquarie Group rose 1 per cent after reporting, in a December quarter update on Tuesday, better profits across its four business units, including its commodities and global markets unit where profit was substantially up on the previous corresponding period.
Energy stocks climbed as oil prices strengthened. Woodside Energy gained 0.6 per cent, Santos rose 0.8 per cent and Yancoal was 0.9 per cent higher.
Tech stocks strengthened, with WiseTech up 0.6 per cent and Xero 2.2 per cent, but there were gains elsewhere, with NextDC jumping 1.7 per cent and Technology One advancing 0.9 per cent.
Childcare operator G8 Education slumped 15.6 per cent after announcing a $350 million non-cash impairment and telling investors it would scrap its final dividend and a pause its share buyback. “Sector conditions remain challenging,” G8 said.
Australia’s biggest winemaker, Treasury Wine Estates, jumped 6.7 per cent after it settled a dispute with its former Californian distributor and told investors it expected its first half earnings to be $236 million, above its previous guidance.
The global wine giant will purchase the stock held by Republic National Distributing Company, which shut its Californian operations in September 2025, for a confidential sum that compensates Treasury Wine for its closure. The Penfolds maker expects settlement costs of $65 million in the second half of the financial year.
The Australian dollar continues to strengthen, trading at US70.89¢ at 1.08pm AEDT.
Overnight, the S&P 500 rose 0.5 per cent and inched closer to its record set two weeks ago. The Dow Jones was down 13 points, or less than 0.1 per cent, and the Nasdaq composite was 1 per cent higher.
The relatively modest moves followed a 3.9 per cent burst higher for Japan’s Nikkei 225 to a record. Stocks rallied in Japan following a landslide victory for the prime minister’s political party in a parliamentary election. The thought is that will give Sanae Takaichi more power to push through reforms that will boost the economy and market.
On Wall Street, the US stock market is coming off its best day since May to close last week, but several concerns still hang over it. That includes criticism that stocks have simply become too expensive following their run to records.
Worries are also heavy about whether all the huge spending by Big Tech and other companies on AI can produce enough profit to make the investments worth it.
Slightly more stocks fell in the S&P 500 than rose, but some of the winners from that rush into AI helped prop up the market. Chip companies rose, for example, with Nvidia up 3.4 per cent and Broadcom up 4 per cent. They were two of the strongest forces pushing upwards on the S&P 500.
On the losing end was Hims & Hers Health, which sank 24.5 per cent after Novo Nordisk filed a lawsuit and alleged Hims & Hers is unlawfully selling versions of its weight-loss treatments. The suit follows a move by the US Food and Drug Administration to restrict access to the ingredients needed to copy popular weight-loss medications.
In the bond market, Treasury yields held relatively steady ahead of several potentially market-moving reports coming later in the week. The US government will offer the latest monthly update on the health of the job market on Wednesday. Friday will bring the latest monthly reading of inflation at the consumer level.
Bitcoin dipped back towards $US70,000 after climbing above $US71,000 at the weekend. It had dropped close to $US60,000 last week, more than halfway below its record set in October.
With AP
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