Energy and Mining Stocks Pull ASX Downward

Highlights:

• Energy and mining stocks lead the ASX 200 Index to a 1.36% decline, reversing from previous record highs.
• Notable performers include Mercury NZ, EBOS Group, and Newmont, while Meridian Energy, Resmed, and Evolution Mining experience significant downturns.
• Market heavyweights such as Rio Tinto and BHP contribute to the downward trend, alongside falling iron ore and Brent Crude prices.

As of midday, the Australian share market has seen a notable decline, mainly driven by energy and mining stocks, marking a sharp retreat from last week's record highs. The S&P/ASX 200 Index plummeted by 107 points, or 1.36%, reaching 7740 by 1 pm. All sectors, including energy (down 2.15%) and mining (down 2.06%), displayed negative trends, with consumer staples showing the smallest decline at 0.11%.

Sector Performances

Mercury NZ emerged as the top performer among large-cap stocks, rising by 1.88%, followed by EBOS Group (up 1.23%) and Newmont (up 0.69%). Conversely, Meridian Energy faced a significant slump of 8.54%, joined by Resmed (down 3.59%) and Evolution Mining (down 3.15%).

Market Heavyweights Impact

Key players such as Rio Tinto, Fortescue, Woodside Energy, and BHP were among the leading decliners, further weighing down the ASX 200. Iron ore prices fell by 1.6% to $US114.85 per tonne, while Brent Crude decreased by 1.3% to $US81.86 per barrel. The Australian dollar remained flat at US66.2¢.

Government Initiatives and Market Anticipation

Treasurer Jim Chalmers outlined plans to expedite approvals for gas and mining projects and revise merger rules. Investors are anticipating the release of the US February consumer price index report, expected to influence inflation perceptions. Meanwhile, market reactions to US job growth data indicate ongoing cautious consumer spending trends, despite signs of modest pullbacks and buyer interventions.

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