ASX200 trades flat on weakening commodity price outlook

ASX eked out tiny gains during Monday’s trading as rises in property trusts and information technology stocks beat falls in iron ore miners.

Australia’s sharemarket has offset weakening commodity prices, closing Monday’s trading in the green.

The benchmark ASX200 index gained 6.90 points or 0.08 per cent to finish Monday’s trading session at 8,257.40, after hitting a near three-week high of 8292.3 points during the morning’s trading.

The broader All Ordinaries rose by 4.60 points or 0.05 per cent to close at 8,516.50.

The Aussie dollar is trading around US62.23c, recovering from a recent low mid last week when it fell to a five-year low.

The Australia share market has ended Monday’s trading day slightly in the green. Picture: NewsWire / Jeremy Piper

Iron ore price falls hit the major miners today, with BHP, Rio Tinto and Fortescue Metals all trading heavily into the red during Monday’s trading.

BHP and Fortescue metals both fell 1.96 per cent to $38.98 and $18.05 respectively. Rio Tinto was also finished in the red, down 1.73 per cent to $115.44.

Commonwealth Bank senior economist Stephen Wu said the price of iron ore fell for a third straight week.

“Iron ore futures slid 1.2 per cent to $US99.44/tn on Friday as some traders liquidated long positions on faltering demand, after most steelmakers in top buyer China completed pre-holiday restocking of feedstocks,” he said.

After breaking the $US100 a tonne barrier on Friday, Singaporean iron ore futures fell further on Monday to a seven-week low of $US98.21.

The sharp falls come following international pressures including a Federal Reserve which is now expecting fewer US interest rate cuts and a lack of stimulus out of China. China is seen as unlikely to make any major policy announcements before its annual so-called Two Sessions legislative meeting in early March.

Fellow miner Bellevue Gold shares dived after the miner cut its guidance for FY25.

In a statement to the market, Bellevue revised forecasts saying its gold production would be between 150,000-160,000 ounces of gold compared to previous guidance of 165,000-180,000.

Shares tumbled by 14 per cent to close Monday’s trading at $0.98.

Seven of the 11 sectors traded higher. Picture: NewsWire / Max Mason-Hubers

The Australian market’s minimal gains came after the US snapped a five day losing streak on Friday. Technology stocks led the rally with the Dow Jones index rose by 340 points or 0.8 per cent.

The S & P 500 index gained 1.3 per cent and the tech heavy Nasdaq index added 341 points or 1.8 per cent.

Block soars 5.5 per cent on positive leads from the US tech sector.

“US equities snapped their losing streak, rallying on Friday at the end of a holiday-shortened week that also rang in the New Year,” Mr Wu said.

NAB was the strongest performer of the big four banks, up 0.75 per cent to $37.83, while CBA rose 0.64 per cent to $156.02. Westpac is trading slightly higher on Monday up 0.18 per cent to $32.70, while ANZ was the only major to fall, down 0.069 per cent to $28.84.

In consumer staples, alcohol stocks were among the biggest losers with Treasury Wine falling 2.5 per cent and Endeavour slipping 2.1 per cent.

Originally published as ASX200 trades flat on weakening commodity price outlook