The ASX remains in the red to start the week, with the benchmark S&P/ASX 200 sliding 65.5 points, or 0.79%, to 8,230.7 points as of 10.30am AEDT, with longer term inflation fears fuelling panic selling on US markets on Friday (21 February).
A raft of US data released last Friday saw a 0.2% rise in five to 10-year inflation expectations to 3.5%.
ANZ Economist Madeline Dunk says elevated economic uncertainty around tariffs and government spending cuts weighed on soft surveys of US economic activity for February.
“Expectations for future activity weakened, while longer-run inflation expectations are at risk of becoming deanchored,” she says.
“That was the clear message from the subset of soft US economic surveys released on Friday, as both businesses and consumers are unsettled by recent policy announcements.”
Dunk says that for the US Federal Reserve, the data is signalling that enhanced caution is required.
Ten of the 11 sectors started the day in the red. The materials sector slipped 0.8% in early trade, followed by energy with a 0.52% retreat. Industrials fell 0.18% and utilities was down 0.1%.
Coal producer Stanmore Resources (ASX:SMR) made early advances, gaining 5.81% to trade at $2.73, after reporting record production for 2024, with capital reinvestment into the company’s core operating assets beginning to yield results.
CEO Marcelo Matos says while metallurgical coal prices moderated throughout the course of the year, Stanmore’s strong operating performance supported robust full year financial results.
“Underlying EBITDA of US$700 million, operating cash flows of US$408 million, and strong cash balances and liquidity have allowed Stanmore to maintain consistent shareholder returns,” he says.
“The declaration of a final 2024 dividend adds to our interim dividend paid last year, for total shareholder distributions of US$100 million related to 2024.”
Meanwhile, aluminium giant Alcoa (ASX:AAI) dropped 6.43% to $54.14.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
