Mining losses erase earlier gains: Aus shares trading 0.3% lower at noon

Market Reports

by Michael Luu

The ASX200 advanced in opening trade but lost momentum and had a backflip into the red zone just before lunchtime.

Iron ore miners were the biggest drags on the market, as the falling prices of the steel-making ingredient lagged the materials sector. Losses in Materials clawed back earlier gains, as BHP (ASX:BHP) and Rio Tinto (ASX:RIO) were leading the mining tumble, shedding 1.5 and 2.6 per cent respectively by midday. 

Healthcare and tech stocks formed the strongest resistance against the broader decline. The Australian IT sector followed in the footsteps of US tech stocks, as Afterpay (ASX:APT) were tracking 1.4 per cent higher at $94.44 .

At noon, the S&P/ASX 200 is 0.27 per cent or 18.90 points lower at 7000.70.

The SPI futures are pointing to a fall of 11 points.

Economic news:

The Australian Bureau of Statistics has released data indicating a 1.1 per cent increase in retail sales in April to $31 billion, which represents a whopping 25.1 per cent rise year on year. The first retail spending figures since the cancellation of JobKeeper payments exceeded analysts’ expectations.

Best and worst performers

The best-performing sector is Information Technology, up 2.14 per cent. The worst-performing sector is Energy, down 2.38 per cent.

The best-performing stock in the S&P/ASX 200 is EML Payments (ASX:EML), trading 15.64 per cent higher at $3.37. It is followed by shares in The A2 Milk Company (ASX:A2M) and Xero (ASX:XRO).

The worst-performing stock in the S&P/ASX 200 is Kogan.Com (ASX:KGN), trading 13.00 per cent lower at $8.83. It is followed by shares in Nufarm (ASX:NUF) and Appen (ASX:APX).

Commodities and the dollar

Gold is trading at US$1872.87 an ounce.
Iron ore is 2.00 per cent lower at US$211.85 a ton.
Iron ore futures are pointing to a fall of 0.50 per cent.
One Australian dollar is buying 77.58 US cents.

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