ASX News LIVE | ASX to Fall after Mixed Session on Wall St; Oil Slides

Australian shares retreated on today, driven by a sharp decline in mining stocks which sent the ASX 200 down -0.46% to close at 7,953.2.

Nine out of eleven sectors were in the red, with the materials sector taking the hardest hit, down -1.93%.

Index heavyweight BHP dropped 1.31% following news of its joint acquisition of Toronto-listed copper miner Filo Corp with Lundin Mining. BHP’s share of the deal is expected to cost $3.2 billion.

Fortescue Metals saw a significant plunge of nearly 10% after a massive block trade in its shares. The AFR reported that JPMorgan was seeking buyers for $1.9 billion worth of discounted stock after Monday’s market close on behalf of an unnamed institutional investor.

The energy (-0.70%) sector also closed weakened as Brent crude oil prices dipped below $US80 per barrel. Shortly after, the Biden administration announced the purchase of 4.65 million barrels of crude for the nation’s strategic petroleum reserve.

On Wall Street overnight, Tesla rallied more than 6% after Morgan Stanley named it their top pick in the US auto sector. This boost helped push both the Nasdaq and the S&P 500 into positive territory by a hair.

Investors remain cautious ahead of policy decisions from central banks in Japan, the US, and the UK this week.

Tomorrow, we have Australia’s quarterly inflation report due, which is keeping market participants on edge.

The coming days also mark a crucial period for earnings season, with tech giants Microsoft, Meta, Apple, and Amazon set to report. Mining giant Rio Tinto is scheduled to release its results at 8:30 am AEST tomorrow also.

Another notable movement today was the collapse of Energy Resources of Australia Ltd [ASX:ERA], which fell an astonishing -37% after flagging a $1.1 billion spend on rehabilitation activities by 2027 for its Ranger mine in the Northern Territory.

Polymetals and Lithium major IGO [ASX:IGO] is the latest stock to join the volatile trading this week after its latest quarter reporting.

IGO’s stock price fell 5.6% despite initially rising up to 3% following the release of its latest quarterly update.

The company reported an increase in underlying earnings before interest, tax, and amortization (EBITA) to $88.2 million.

This growth was attributed to higher net profits from its joint venture with Tianqi Lithium Energy Australia and increased spodumene sales from its Greenbushes mine in Western Australia.

The stock has been under recent pressure due to operational issues throughout the year at its refinery, saying in late June that its output was ‘well below expectations‘.

IGO’s shares are now down over 60% in the past 12 months and are currently trading at $5.35 per share.

Australian shares opened sharply lower today, with the ASX 200 falling -0.85% to 7921.7 around midday.

All 11 sectors declined, led by materials, which dropped -1.9% as major mining stocks faced significant pressure.

BHP shares fell -1.3% following news of its joint acquisition with Lundin Mining of Filo Corp, a Toronto-listed copper miner. BHP’s share of the deal is expected to cost A$3.2 billion.

Fortescue Metals saw a steeper decline of -8.8% after a large block trade. The AFR reported that JPMorgan was seeking buyers for A$1.9 billion worth of discounted stock on behalf of an unnamed institutional investor.

In the energy sector, Brent crude oil prices dipped below US$80 per barrel as global demand concerns outweighed risks of a broader war in the Middle East.

BHP [ASX:BHP] and Lundin Mining have agreed to jointly acquire 100% of Filo Corp, a Canadian-listed company that owns the Filo del Sol (FDS) copper project in the Vicuña district of Argentina and Chile.

The huge copper mine has been on the radars of many after BHP’s failed attempt to acquire Anglo American earlier this year.

BHP and Lundin have agreed to pay C$4.1 billion, or C$33.00 per Filo Corp. share. That’s a premium of 32.2% to Filo Corp.’s 30-day volume-weighted average price.

Mike Henry, Chief Executive Officer of BHP said:

‘The proposed transaction builds on a multi-year relationship between BHP and the Lundin Group of companies through which we have developed a strong understanding of the resource potential of the Vicuña district and the possible pathways for development of the Filo del Sol and Josemaria projects.’

 

‘This transaction aligns with BHP’s strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value.’

Shares in BHP are down by -1.08% in trading today, along with the broader market.

Ramsay Health Care [ASX: RHC] today announced that long-serving Managing Director & Group CEO Craig McNally will retire at the end of June 2025.

Woolworth’s head of supermarkets, Natalie Davis, will take up the post, leaving behind the troubled Woolworth’s group who’s leadership positions are looking more tenious as Mr Banducci looks for a successor.

Today he wished her well, saying:

‘For the last four years as managing director, Woolworths Supermarkets, Natalie has been a very purposeful leader and championed a number of initiatives that are key to our future, but her single biggest achievement has been the immense care she has shown for our team,’ Mr Banducci said.

Ramsay’s share price is down by 1%, trading at $46.48 per share.

Fortescue Metals [ASX:FMG] has seen its shares plummet -8.6% in this morning’s trading following a report in AFR Street Talk column.

The report revealed that JPMorgan’s equity capital markets division was seeking buyers for $1.9 billion worth of discounted Fortescue stock after the market closed yesterday.

The sale was reportedly being conducted on behalf of an unnamed institutional investor.

The massive block of shares were apparently being sold at a 6-8.8% discount from the last close.

The sale is a sign from investors that either iron ore prices or FMG’s direction was something to be concerned about, and they have exited heavily today.

BHP’s -1.55% morning drop and the FMG slump have pulled the ASX 200 down by -0.87% in trading so far today.

Good morning. Charlie here,

The ASX 200 Futures tip a fall in the benchmark today after falling commodity prices and a mixed session on Wall Street weighed on the market.

The S&P 500 and Nasdaq held flat, while the remainder fell amidst a quiet day. But ahead of us is a busy week of signals and earnings.

McDonald’s reported its earnings last night, showing its sales fell globally for the first time in over three years, perhaps a sign that consumer spending has hit its limit.

Despite the 1% sales drop, the company’s shares were up 4% after leadership said its $5 meal deals, which were launched in June, were selling ‘above expectations‘.

In commodities, oil prices fell again after a slight uptick yesterday on fears of a strong response from Israel after the Saturday missile attack, which killed 12 Israelis.

For now, global demand concerns outweigh the concerns of a broader war between Israel and Hezbollah, with WTI Crude down -1.9% to US$75.69.

Gold eased back slightly in overnight trading, falling -0.62% to US$2,381.84.

News to watch for this morning: Ramsay’s CEO announces retirement, and a Fortescue major shareholder looks to sell a $1.9 billion stake at a discount.