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Market Wrap – 12 June 2025
The S&P/ASX 200 index concluded the trading session down 27 points, or 0.31%, finishing at 8,565.1, which reflects a slight withdrawal from the recent highs. Investor sentiment was negatively impacted by escalating tensions in the Middle East and rising crude oil prices, leading to a decreased risk appetite across markets.
Resources shares, notably in iron ore, lithium, and base metals, suffered the most, while companies focusing on gold and silver production benefitted from the prevailing market conditions. Although the technology sector saw minor gains, these were insufficient to offset the losses among the major banks, which are heavyweights in the index.
Today in Review (12 June 2025)
Major Indices Performance:
- ASX 200: 8,565.1 (-0.31%)
- All Ordinaries: 8,796.0 (-0.27%)
- Small Ordinaries: 3,268.7 (+0.55%)
- All Tech: 4,038.3 (+0.06%)
- Emerging Companies: 2,323.3 (+1.03%)
Currency:
- AUD/USD: 0.6524
US Futures:
- S&P 500: 6,013.75 (-0.25%)
- Dow Jones: 42,777.0 (-0.31%)
- Nasdaq: 21,833.5 (-0.25%)
Market Analysis
The ASX 200 experienced a decline while the broader S&P/ASX 300 had a slight edge with 143 advancers against 135 decliners. The day showed strong movements in specific sectors.
Gaining Stocks
Highlights include:
- Newmont Corporation: +3.0%
- Evolution Mining: +2.3%
- Qantas Airways: +2.1%
Declining Stocks
Significant decreases were noted in:
- Mineral Resources: -7.8%
- Pilbara Minerals: -6.0%
- Fortescue: -3.4%
Economic Updates
Inflation expectations in Australia surged to 5.0% annually, compared to the previous figure of 4.1%. This upward adjustment is indicative of growing inflationary concerns.
Upcoming Economic Indicators:
- US Core Producer Price Index (PPI) for May is due, with expected growth of 0.3% month-over-month.
- A 30-year Bond Auction from the US with an expected high yield to solidify insights into market sentiments.
Key Insights
The day’s technical analysis highlighted:
- The NASDAQ Composite Index showed hesitancy as it grappled with major supply zones.
- The S&P/ASX 200 appeared to be at a crossroad, with indications of the supply side gaining traction. It is crucial for investors to monitor for confirmation of a trend reversal before taking significant actions.
Market Movements
Trading was diverse today, with:
- Big Gainers (General strength in mining and healthcare):
- Dateline Resources: +26.6%
- Clover Corporation: +23.2%
- Significant Losers:
- Cettire: -31.2%
- Mineral Resources: -7.8%.
Broker Updates
Several key stocks received attention from analysts:
- Life360 (360) retained a positive outlook by E&P.
- Beach Energy (BPT) was downgraded to hold by Morgans.
- Atlas Arteria (ALX) maintained a buy rating at Citi, with a target price of $5.70.
Conclusion
Today’s trading conditions depict a complex landscape where external geopolitical tensions weigh heavily on market dynamics. Investors are encouraged to remain vigilant as the ongoing shifts can present both opportunities and challenges, potentially reshaping market trajectories in the coming sessions.
This summary encapsulates a snapshot of notable movements in the Australian market and economic landscape as of 12 June 2025. These insights can assist investors in navigating the current market environment.
