Gold and silver miners were mixed after their unprecedented rally over the past weeks as gold prices hit a fresh record, having relentlessly climbed above $US4100 an ounce over the past week. Northern Star Resources rose 0.4 per cent and Newmont gained 1.5 per cent, while Evolution Mining shed 2.9 per cent. South32, which owns the nation’s biggest silver mine, added 1.3 per cent following silver’s ride to a record this week.
Rare earths producers had a calmer session after two days of frenetic gains following a report by this masthead that the Albanese government was considering minimum prices for critical minerals and pumping money into new rare earth projects as part of a potential resources deal with the US. Lynas added 1.7 per cent and Iluka rose 4.4 per cent. Arafura Rare Earths gave up 6.7 per cent after soaring 25 per cent and 27 per cent in the past two trading sessions.
Energy was the worst-performing sector after oil prices weakened overnight and the International Energy Agency increased its forecast for an unprecedented oversupply of oil for 2026. Worldwide crude supplies will exceed demand by almost 4 million barrels a day next year, a record overhang in annual terms, the agency said. Oil and gas giant Santos lost 2.2 per cent, while Woodside closed 0.4 per cent higher after falls earlier in the day.
Power and gas giant Origin Energy faced repeated questions at its annual general meeting about whether it intended to shut Australia’s largest coal-fired power station in 2027 or delay its closure for a second time.
After reaching an agreement with the NSW government to continue running the Eraring power station on the shores of Lake Macquarie until August 2027, Origin told investors on Wednesday it was possible it may need to remain in the grid even longer because the build-out of new renewable energy projects and transmission lines was still running behind schedule. Origin shares rose 2 per cent.
The gains on the local bourse followed a rollercoaster session on Wall Street overnight. The S&P 500 plunged in the morning, rallied by midday to trade up 0.4 per cent in its biggest down-to-up reversal since early April, and then fell back to close down 0.2 per cent. The Dow Jones Industrial Average climbed 0.4 per cent, and the Nasdaq composite dropped 0.8 per cent.
The big swings marked yet another sharp twist for markets over the past few days. Wall Street tumbled on Friday for its worst day since April and bounced back on Monday for its best day since May.
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Following its brief bounce overnight, the S&P 500 retreated as US President Donald Trump said he might stop trade in cooking oil with China, injecting fresh tensions into the relationship between the world’s two largest economies. His remarks also came after Beijing sanctioned US units of a South Korean shipping giant, escalating a dispute over maritime dominance.
“Since the tariff/trade issue is the one issue that has created problems for the stock market his year, we’ll all be watching the developments on this one very, very closely,” said Matt Maley at Miller Tabak.
The ongoing trade war between the US and the world has been an unpredictable weight on the market. The trade conflict with China is potentially the most economically consequential.
“We remain cautiously optimistic that both sides will ultimately pursue a negotiated resolution, given the significant economic stakes,” said Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.
with AP and Bloomberg
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