The local share market has closed slightly lower on the first day of a big week of economic events, at home and abroad.
The benchmark S&P/ASX200 index on Monday finished down 7.5 points, or 0.1 per cent, at 7,306.4, while the All Ordinaries dropped 9.5 points, or 0.13 per cent, at 7,517.3.
The Australian dollar was buying 67.32 US cents, from 67.81 US cents at Friday’s ASX close.
Two readouts by the Australian Bureau of Statistics this week – second-quarter inflation figures on Wednesday and June retail sales on Friday – are expected to be crucial in deciding whether the Reserve Bank raises interest rates at its August 1 meeting.
The US Federal Reserve, the Bank of England and the Bank of Japan will also hand down their rate decisions this week, with the Fed expected to hike.
“It’s a huge week for investors – it arguably doesn’t get much bigger than this,” said eToro market analyst Josh Gilbert.
The ASX’s two commodities sectors were the biggest movers on Monday, with energy rising 2.2 per cent and materials dropping 1.4 per cent.
BHP fell 1.5 per cent to $44.34, Fortescue Metals retreated 1.6 per cent to $22.19 and Rio Tinto closed down 1.3 per cent to $115.25.
South32 slid 2.6 per cent to a two-week low of $3.72 after taking a $1.3 billion non-cash impairment of the value of its Taylor deposit in the US state of Arizona.
COVID-19-related delays, significant dewatering requirements and inflationary market conditions have eroded the value of the zinc-lead-silver ore body, but South32 CEO Graham Kerr said it still had “the potential to produce commodities critical for a low-carbon future … for decades to come”.
South32 aims to complete a feasibility study by early next year with an eye to creating a zinc-lead-silver underground mine capable of producing up to 4.3 million tonnes per annum.
Lithium miners were also significantly in the red after Core Lithium forecast lower-than-expected production and higher costs at its new Finniss mine south of Darwin.
Core Lithium shares plunged 17.2 per cent to an 18-month low of 72c, while Allkem dropped 5.6 per cent to $15.06, Liontown closed down 3.9 per cent to $2.73 and Pilbara retreated 5.8 per cent to $4.59.
In the energy sector, Woodside advanced 2.3 per cent to $37.25 while coalminers New Hope and Woodhaven both rose by more than three per cent.
Among the Big Four banks, NAB dropped 0.8 per cent to $27.69 while ANZ, Westpac and CBA were all down about 0.1 per cent, to $25.12, $21.96 and $104.43, respectively.
Suncorp dipped 0.1 per cent lower to $13.96 after ANZ granted the competition watchdog’s second request for more time to review its $4.9 billion purchase of Suncorp’s banking arm.
The Australian Competition and Consumer Commission must make a ruling on the merger authorisation by August 4.
The Australian dollar was buying 67.38 US cents, from 67.81 US cents at Thursday’s ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Monday down 7.5 points, or 0.1 per cent, at 7,306.4.
* The All Ordinaries dropped 9.5 points, or 0.13 per cent, to 7,517.3.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.38 US cents, from 67.81 US cents at Friday’s ASX close
* 95.25 Japanese yen, from 95.10 Japanese yen
* 60.47 Euro cents, from 60.88 Euro cents
* 52.30 British pence, from 52.61 pence
* 108.87 NZ cents, from 108.89 NZ cents.
