The information technology sector rose for the second day running despite a fall in WiseTech Global shares, which declined by 0.4 per cent. TechnologyOne also slipped (down 0.5 per cent), while accounting software company Xero rose 1.1 per cent.
The laggards
Materials faltered as mining stocks tumbled โ the sector was unable to rebound from losses in early trade, slipping to 1.5 per cent at the end of the day. BHP and Rio Tinto dropped 1.7 per cent and 1.4 per cent respectively. Fortescue dropped by 2.2 per cent as the iron ore heavyweight reported quarterly results to investors.
Iluka Resources (down 6.5 per cent) and Liontown Resources (down 6.38 per cent) recorded the biggest losses on ASX 200. Gold mining company Evolution Mining was the biggest laggard on the market at midday but rebounded slightly, closing 3.9 per cent lower.
Dragged down by Wesfarmers (down 1.5 per cent) and Aristocrat Leisure (down 2.7 per cent), consumer discretionary was the worst-performing sector. The real estate sector dipped by 0.9 per cent, after industrial property giant Goodman Group fell by 1.1 per cent.
The four big banks had a mixed day as NAB fell 0.3 per cent, while Westpac (down 0.1 per cent) and ANZ (down 0.1 per cent) edged lower. CBA shares closed 0.1 per cent higher.
The lowdown
Chief economist at BetaShares David Bassanese attributed the market sliding to dips in the mining sector as a result of investor reactions to Trumpโs comment on Wednesday that he intended to introduce tariffs on Chinese imports.
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โResources have taken a bit of a hit โ Trump is the main driver of markets at the moment.
โHis proposal to impose a 10 per cent tariff on China has obviously reverberated through our market today.
โHopes are rising and falling depending on what heโs saying on tariffs,โ said Bassanese.
Meanwhile, the federal government announced it will acquire $50 million of debt from Rex, making it the embattled regional airlineโs biggest creditor. The money will allow more time to overhaul the airline and prepare it for sale. This comes after the company was placed into voluntary administration in July.
โThis makes clear the governmentโs ongoing commitment to maintaining access to aviation services for regional and remote communities, and recognises the critical role of the Rex network to local economies,โ a joint statement between Finance Minister Katy Gallagher and Transport Minister Catherine King said.
In the US, Netflix, Oracle and other big technology stocks lifted Wall Street as their profits pile higher and excitement builds around the moneymaking prospects of artificial intelligence.
The S&P 500 rose 0.6 per cent and came close to its all-time closing high set early last month. The Dow Jones added 130 points, or 0.3 per cent, and the Nasdaq composite climbed 1.3 per cent.
Quote of the day
โIf he [Trump] puts the [additional] tariffs on China [and as a result] it doesnโt have many orders, we can get China to manufacture our stuff more cheaply, and that will offset the [adverse] currency movement.โ
Retail billionaire and chair of Premier Investments Solomon Lew, on how Trumpโs imposition of tariffs could lead to northern-hemisphere businesses deserting manufacturing in China. Lew said this could create more opportunities for Australian apparel companies to cut cheaper deals with China.
Read more of Elizabeth Knightโs opinion piece here.
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with AP
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