On Monday, the Australian stock market experienced a modest decline, reversing the gains from the previous session despite positive cues from Wall Street on Friday. The benchmark S&P/ASX 200 index has fallen below the 8,100 level, driven by weakness in mining stocks amid declining metal prices. Traders also responded to data indicating a continued slump in the domestic manufacturing sector in August.
The S&P/ASX 200 Index is down 21.70 points or 0.27 percent, currently at 8,070.20, after hitting a low of 8,041.30 earlier. The broader All Ordinaries Index is also declining, down 25.50 points or 0.31 percent to 8,291.20. Australian stocks had closed higher on Friday.
In the mining sector, Rio Tinto is down nearly 1 percent, BHP Group is down 0.4 percent, while Mineral Resources has gained more than 1 percent and Fortescue Metals is up 0.3 percent. Oil stocks are primarily moving higher, with Santos edging up 0.2 percent, Woodside Energy gaining almost 1 percent, while Origin Energy has dipped 0.3 percent. Beach Energy remains flat.
Among tech stocks, Xero and WiseTech Global are both up between 0.2 to 0.3 percent, while Block and Zip have each lost almost 1 percent. Conversely, Appen is surging with a 5.5 percent increase.
Gold miners are predominantly lower: Evolution Mining is down more than 2 percent, Resolute Mining declining nearly 4 percent, Northern Star Resources down almost 2 percent, and Gold Road Resources down more than 1 percent. Newmont, however, is up 0.4 percent.
The big four banks are modestly higher, with Commonwealth Bank, National Australia Bank, ANZ Banking, and Westpac all up between 0.2 to 0.4 percent each.
In other notable developments, Imugene shares have soared over 27 percent following promising results from a cancer treatment trial involving 10 patients, despite reporting a net loss of nearly $150 million for the 2024 financial year. REA Group shares were halted at the start of trading after confirming considerations for a bid for UK-listed Rightmove. Meanwhile, Star Entertainment shares have been suspended due to the failure to publish its full-year results last week.
Economic data revealed that Australia's manufacturing sector continued to contract in August, though at a slower pace. The latest survey from Jufo Bank showed a manufacturing PMI score of 48.5, up from 47.5 in July, yet still below the 50 threshold that separates expansion from contraction.
In currency markets, the Australian dollar is trading at $0.677 on Monday.
On Wall Street, stocks fluctuated throughout Friday's trading session but ultimately ended the day sharply higher. The Dow climbed for the fifth time in the past six sessions, closing at a new record high. The Nasdaq surged 197.19 points or 1.1 percent to 17,713.62, the S&P 500 increased by 56.44 points or 1.0 percent to 5,648.40, and the Dow rose 228.03 points or 0.6 percent to 41,563.08.
Meanwhile, European markets ended slightly lower, with the French CAC 40 Index down 0.1 percent, and both the U.K.'s FTSE 100 Index and the German DAX Index closing just below the unchanged line.
Crude oil prices significantly declined on Friday following reports that OPEC is set to proceed with a planned oil output hike starting in October. West Texas Intermediate crude for October delivery dropped $2.36 or 3.1 percent to $73.55 a barrel.
