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ASX falls 0.8%: Materials falls as iron ore prices slump

PUBLISHED

2024-07-08

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The Australian sharemarket, particularly impacted by a commodities sell-off, saw significant declines on Monday, with the S&P/ASX 200 dropping 0.8% to 7763.2 points. This downturn was led by a 1.8% fall in mining stocks, driven by a sharp decline in iron ore prices to $107.90 per tonne amidst concerns over Chinese demand and oversupply. Major miners like BHP, Fortescue, and Rio Tinto mirrored these losses. Meanwhile, Rex Minerals surged 56.4% to 43¢ following news of a buyout deal, contrasting with broader market trends.

Futures

The Dow Jones futures are pointing to a fall of 90 points.

The S&P 500 futures are pointing to a fall of 9.25 points.

The Nasdaq futures are pointing to a fall of 29 points.

The SPI futures are down 61 points.

Best and worst performers

The best-performing sector was Consumer Discretionary, up 0.33 per cent. The worst-performing sector was Materials, down 1.81 per cent.

The best-performing large cap was EBOS Group (ASX:EBO), closing 3.53 per cent higher at $30.20. It was followed by shares in Pro Medicus (ASX:PME) and Evolution Mining (ASX:EVN).

The worst-performing large cap was BlueScope Steel (ASX:BSL), closing 3.56 per cent lower at $19.78. It was followed by shares in GQG Partners (ASX:GQG) and Mineral Resources (ASX:MIN).

Asian markets

Japan's Nikkei has lost 0.32 per cent.

Hong Kong's Hang Seng has lost 1.79 per cent.

China's Shanghai Composite has lost 0.78 per cent.

Commodities and the dollar

Gold is trading at US$2,390.90 an ounce.

Iron ore is 3.1 per cent lower at US$110.50 a tonne.

Iron ore futures are pointing to a 3.3 per cent fall.

Light crude is trading $-0.43 lower at US$82.73 a barrel.

One Australian dollar is buying 67.45 US cents.

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