Markets at a glance 9 January
Around the grounds
The S&P/ASX 200 has snapped a five-day winning streak, dogged by financials and miners as investors around the globe grow cautious after minutes from the Federal Reserve’s last meeting threw cold water on aggressive rate cuts this year, as members raised fresh concerns on inflation under the incoming Trump administration.
Breaking down the detail, local banks snapped a five-day run in the black, while miners slipped as iron prices continue to decline, down for a fourth straight session after top Consumer China’s latest stimulus measures, again, disappointed investors.
The energy plays have also extended losses for a second session as oil prices continue under pressure, while gold miners have bucked the broader trade to trade higher as the price of bullion soars nearing a four-week peak.
On the data docket, retail sales boasted the biggest increase in 10 months in November as Black Friday sales lured in consumers. ABS data showed retail sales rose 0.8% in the month, a shade lower than the 1% analysts were looking for.
On an annual basis, sales were up 3% to AU$37.1 billion, with the ABS noting promotional activity now stretched across the entire month, not just the Black Friday weekend.
The Australian unit slipped on the softer-than-expected data which has added to negative sentiment.
In the news
Quick check in on some of the stocks to watch in today’s trade. Telstra (ASX: TLS) is in firm focus as the Australian telco confirms it is in collaborating with billionaire Elon Musk’s Space X to bring satellite connectivity to its regional customers.
Shares of Star Entertainment (ASX: SGR) meantime have sunk to touch a fresh record low as the company faces repercussions following yesterday’s news of the casino operator’s cash and liquidity position for the December quarter.
The embattled company flagged the group has burnt through AU$107 million in available cash in the December quarter, citing continued difficult trading conditions, essential capital expenditure and the first AU$5 million instalment of the AU$15 million fine imposed by the NSW Independent Casino Commission last year.
In response, analysts at Jefferies have said they see no catalyst for an improvement in earnings in the short term, forecasting revenue to be impacted by the introduction of cash limits and the start of cashless gaming in its Queensland locations. Star is expected to release its half-year results on February 28.
Elsewhere, Australian listed shares of Macmahon Holdings (ASX: MAH) are on the rise after the infrastructure services provider confirmed it was selected as the mining contractor the Awak Mas gold project in Indonesia, worth AU$463 million.
Last year shares of MAH gained 86.5%, continuing its green run from 2023.
To the smaller end of town and shares of Hazer Group (ASX: HZR) have surged, to post their biggest intraday percentage gain since early December last year. It comes as the climate tech firm secures a Japanese patent for a method of hydrogen production from methane or natural gas, using iron oxide as a catalyst.
The company says the patented protection fortifies its position in low-cost, clean hydrogen and graphite production in the Japanese market.
Shares of HZR fell 45.3% last year.
Going global
Rounding things out on the global stage and the rest of the Asian region is taking cues from Wall Street, expected to end the session in the red on the back of those Fed minutes that hinted at higher for longer interest rates due to sticky inflation.
Investors are also closely watching China’s December inflation data, with economists tipping near-zero growth in consumer prices and a continued decline in producer prices. The Nikkei 225 is lower, while the broader Topix has dipped around 0.6%.
Looking ahead, U.S. futures are back online with all three of the majors expected to open in negative territory when the Wall Street session gets underway.
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